How Should Landlords Handle Jointly Owned Property Under MTD?

From April 2026, Making Tax Digital for Income Tax (MTD for IT) will transform how landlords keep records and file tax returns. 

While the rules are clear in most cases, joint property ownership raises unique questions. Does every partner need to register? What happens if one owner crosses the £50,000 threshold but the other doesn’t? Do you need to report your percentage ownership in each quarterly update? And how do you keep compliant records without drowning in spreadsheets?

This guide explains exactly how MTD works for jointly owned property, with practical scenarios and solutions.

The MTD Timeline

• April 2026: MTD ITSA becomes mandatory for landlords and self-employed individuals with gross qualifying income over £50,000.
• April 2027: Threshold lowers to £30,000.
• April 2026: threshold expected to lower to £20,000

From these dates, affected landlords must:

• Keep digital records.
• Submit quarterly updates of income and expenses using HMRC-recognised software (like Landlord Studio).
• File a year-end final statement instead of the traditional Self-Assessment return.

How the £50,000 Threshold Works for Jointly Owned Properties

The most important thing to note here is that the threshold applies per individual, not per property or portfolio.

That means HMRC looks at each owner’s gross qualifying income (before expenses), not the property’s total rent.

Example 1: Simple 50/50 split

Two landlords jointly own a rental property that generates £60,000 a year.

• Owner A’s share: £30,000
• Owner B’s share: £30,000

Neither exceeds the £50,000 threshold → neither needs to register for MTD in April 2026, but both will need to register for MTD ahead of April 2027.

Example 2: Large 50/50 split

Two owners have a property generating £120,000 a year.

• Owner A’s share: £60,000
• Owner B’s share: £60,000

Both exceed the threshold → both must register and comply with MTD from April 2026.

Example 3: Uneven ownership split

Two landlords own a property with an £80,000 annual rental income, split 30% and 70%.

• Owner A (30%): £24,000 → under the threshold.
• Owner B (70%): £56,000 → over the threshold.

In this scenario, only the 70% owner must register in April 2026. Owner A can wait until the 2027 threshold drop (if applicable).

Example 4: Joint Ownership and Additional Income

Two landlords jointly own a property that generates £60,000 annual rental income. Landlord A is also self-employed, but owner B has no additional qualifying income. 

• Owner A (50%): £30,000 + self-employment income of £30,000 → over the threshold.
• Owner B (50%): £30,000 → under the threshold.

In this final scenario, Owner A would be required to register for MTD and file quarterly updates from April 2026. Owner B would fall under the 2026 threshold, however, and not be required to register until 2027.

👉 According to HMRC guidance:The threshold applies to each individual taxpayer’s total qualifying income, not to the income of the property as a whole.

Common Scenarios for Landlords

1. Husband and wife: If one spouse has a larger share pushing them over £50,000, only that spouse must comply initially. The other continues filing Self-Assessment as usual.
2. Parent and child: A parent with multiple income streams (self-employment + property) may hit the threshold, while their child co-owner may not.
3. Mixed business ownership: You might own some property in jointly with a business partner and some additional property in your name alone, meaning you are over the 2026 threshold, but your partner (who doesn’t have additional property in their portfolio) isn’t. 
4. Self-employed and property income: Qualifying income is not limited to rental income but also includes your self-employment income, meaning, even if your rental income alone is below the threshold, your self-employment income might push you over.

These situations can get complicated especially if owners attempt to track and split income manually.

How Joint Ownership Submissions Work Under MTD

Each individual who meets the qualifying income threshold must submit their own MTD updates to HMRC. This means:

• Landlord A files based on their share.
• Landlord B files based on theirs.

As such, landlords need to accurately calculate and report their ownership share from the start of the tax year. This is no longer something you can calculate retrospectively once a year.

If you use Landlord Studio, the process is straightforward:

• Set up each property with the correct ownership percentages.
• The system automatically splits income and expenses by owner.
• Generate separate MTD-ready reports for each owner.
• You can then authorise MTD for one or both owners, depending on who qualifies.

This ensures each individual stays compliant without doubling the work.

Why Manual Methods Fail

Some landlords plan to stick with spreadsheets, but under MTD this is already risky, and with joint ownership this approach presents even more of a challenge.

• Splitting receipts: Imagine uploading utility bills, mortgage interest, and repairs, then manually splitting each one by ownership percentage. It’s easy to get wrong.
• Tracking multiple owners: With different tax positions, it’s easy to confuse who needs to submit what.
• Bridging software: Excel requires additional “bridging” tools to connect with HMRC, adding cost and complexity.

Even a small mistake could mean non-compliance penalties once MTD kicks in.

How Landlord Studio Helps

Landlord Studio is designed with joint ownership in mind:

• Multi-owner support: Add multiple owners and assign percentage splits.
• Individual compliance: Generate reports and MTD updates for each owner separately.
• Automation: Integrated bank feeds and receipt scanning reduce manual errors.
• MTD flexibility: Authorise MTD for one owner, both, or add more as thresholds change.

By handling ownership splits automatically, Landlord Studio saves time, ensures accuracy, and gives landlords confidence when submitting to HMRC.

Conclusion: Prepare Early for Joint Ownership Compliance

Jointly owned property doesn’t have to make MTD complicated. The key is understanding:

• The £50,000 threshold applies per individual, not per property.
• Each owner files their own MTD updates.
• Software like Landlord Studio makes ownership splits and individual HMRC-compliant simple.

With the first phase of MTD fast approaching, now is the time to set up digital record-keeping systems. By doing so, you’ll avoid stress, reduce the risk of errors, and stay ahead of HMRC’s requirements.

👉 Ready to simplify joint ownership reporting? Create your free Landlord Studio account today and ensure you’re MTD-ready well before the April 2026 deadline.