Making Tax Digital for joint property owners
If you own a rental property jointly, only your share of the property income counts towards your MTD qualifying income [1]. HMRC's example: siblings who jointly own a property bringing in £50,000, split equally, each have qualifying income of £25,000 from it [1]. If you only get told your share after expenses, HMRC assesses that figure [1]. Married couples and civil partners who live together are usually taxed in equal shares, unless they own and are entitled to the income in unequal shares and declare it [2].
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Making Tax Digital for joint property owners works person by person. Each owner looks at their own share of the rent, adds any other property or self-employment income they have, and checks that total against the MTD threshold. Two people can own the same house and only one of them be in MTD.
How MTD treats joint ownership
MTD for Income Tax applies to individuals registered for Self Assessment with qualifying income over the threshold: over £50,000 (2024–25) from April 2026, over £30,000 (2025–26) from April 2027, and over £20,000 (2026–27) from April 2028 [3].
Qualifying income is your gross self-employment and property income before expenses [1]. For a jointly owned property, the part that counts is your share [1]. Your share of a jointly owned property business isn't treated as a separate business from properties you own yourself [2], so it's added to any other property income you have.
Working out your share
Spouses and civil partners living together. Income from jointly owned property is usually taxed in equal shares. If you own the property in unequal shares and are entitled to the income in the same unequal shares, you can be taxed on that basis, but you both need to declare your beneficial interests [2].
Other joint owners, such as siblings, friends or business partners who aren't in a partnership. Your share of rental profit or loss is usually based on your share of the property, unless you agree a different split [2].
Partnerships. If you're an individual partner, your share of partnership profit doesn't count towards MTD qualifying income [1]. Partnerships are due to join MTD later, with dates to be set [3].
Making Tax Digital for joint property owners: examples
These follow HMRC's guidance [1][2]. They're illustrations, not advice.
| Situation | Gross rent | Your share | Other qualifying income | Your qualifying income | Over £30,000 (April 2027)? |
|---|---|---|---|---|---|
| Married couple, 50/50, one let | £40,000 | £20,000 | None | £20,000 | No |
| Married couple, declared 80/20, one let | £40,000 | £32,000 (80%) | None | £32,000 | Yes, the 80% owner only |
| Siblings, 50/50 | £50,000 | £25,000 | None | £25,000 | No |
| Joint let 50/50 plus your own flat | £30,000 joint + £18,000 own | £15,000 + £18,000 | None | £33,000 | Yes |
| Joint let 50/50 plus self-employment | £24,000 | £12,000 | £22,000 | £34,000 | Yes |
Remember that the test uses income for the earlier tax year: 2025–26 income decides whether you're in from April 2027 [3].
When only one owner is in MTD
This is common. In that case:
- the owner who's in MTD keeps digital records of their share and sends quarterly updates through compatible software [4],
- the other owner keeps filing a normal Self Assessment return.
You'll want one set of records for the property that both of you work from, so the figures match. Agree who keeps the receipts and how costs are split before the first quarterly deadline on 7 August [4].
Records for a jointly owned rental
- One record of all rent received, by date.
- One record of all expenses, with receipts and invoices, and who paid.
- A note of the agreed split, and any declaration of beneficial interests for couples [2].
- Records kept for at least 5 years after the 31 January filing deadline [2].
Where Gaffy helps joint owners
Joint owners often split the work: one deals with the tenant, the other with the money. That's where details get lost. Gaffy keeps the repair side in one place for the property, not in one person's phone:
- the tenant reports problems through the property's repair link, with photos,
- every request has a status, outcome and the cost you log,
- gas safety, EICR and EPC certificates sit in the property's vault with expiry flags.
So when you're both working out expenses for your MTD software or your tax return, the repair costs and invoices are already together. Gaffy isn't MTD software and doesn't file to HMRC. It's £12 a month for up to 5 properties, first month free.
Questions to settle between joint owners now
- Whose share is what? Write it down, and for couples check whether you've declared unequal beneficial interests [2].
- Who keeps the master records? One person, one system, shared access.
- Who pays which costs? Note it per expense, so each owner's records are right.
- Who talks to the tenant? One point of contact avoids crossed wires.
- When is each owner's MTD start date? They can differ.
Exemptions still apply per person
If one owner is digitally excluded, for example, they can apply for an exemption from MTD, which is based on their own circumstances [5]. The other owner's position doesn't change.
Keep one property record
Even if only one owner is in MTD, keep a single shared record of rent and costs for the property.
What if the property is owned through a company?
MTD for Income Tax applies to individuals [3]. Properties owned by a limited company are taxed under Corporation Tax instead.
People also ask
Does Making Tax Digital apply to jointly owned property?
Yes, but only your share of the income counts towards your qualifying income [1].
Do both joint owners need to use MTD?
Not necessarily. Each owner is assessed on their own qualifying income [1].
How is rental income split for married couples?
Usually in equal shares, unless you own and are entitled to the income in unequal shares and both declare it [2].
What if I only know my share after expenses?
HMRC will assess that figure for your qualifying income [1].
Do partnerships have to use MTD?
Not yet. HMRC says partnerships will join later, with a timeline to be set [3].
Try Gaffy free for a month · MTD for landlords · Making Tax Digital for landlords · MTD threshold guide
FAQ
Can both owners see the property in Gaffy?
Check with us about account access for joint owners before you sign up.
Does Gaffy split costs between owners?
No. Gaffy logs the cost against the property. Split it in your accounts.
Sources
- HMRC, Work out your qualifying income for Making Tax Digital for Income Tax (ww.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax)
- HMRC, Work out your rental income when you let property (ww.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income)
- HMRC, Find out if and when you need to use Making Tax Digital for Income Tax (ww.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax)
- HMRC, Use Making Tax Digital for Income Tax: send quarterly updates (ww.gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates)
- HMRC, Apply for an exemption from Making Tax Digital for Income Tax (ww.gov.uk/guidance/apply-for-an-exemption-from-making-tax-digital-for-income-tax)