Jointly Owned Rental? Here's How to Split It Under MTD

Plenty of landlords don't own their property alone. Maybe you bought it with your spouse, split it with a sibling, or went in with a friend on a buy-to-let. It's a very common setup — and it raises a very common worry: how on earth does Making Tax Digital work when two (or more) people own the same property?

The good news is that it's more straightforward than you might fear. Once you understand one simple principle, the rest falls neatly into place. Let's walk through it.

The golden rule: you each report your own share

With a jointly owned rental, you don't file one joint set of records. Instead, each owner reports their own share of the income and expenses under their own tax affairs.

So if you and your partner own a property 50/50, you each report half the rent and half the costs. If the split is 60/40, that's how you each report it. The property is shared, but for tax purposes you're each looking after your own slice.

This is actually the same principle that has always applied under Self Assessment — MTD doesn't change how the income is divided. It just changes how you keep records and report it to HMRC.

How the income split usually works

For most couples who own property jointly, the rental profit is typically split 50/50 by default. Couples can sometimes choose a different split that reflects their actual ownership shares, but that involves specific paperwork with HMRC and isn't automatic.

For other joint owners — friends, family members, business partners — the split usually follows your ownership shares.

The key point: agree your split, keep it consistent, and make sure each of you records the same proportion. If you're unsure what split applies to your situation, this is exactly the kind of question worth checking with HMRC or an accountant.

Does everyone have to join MTD?

Here's where it gets reassuring. Whether you need to join MTD depends on each person's own qualifying income — not the total the property earns.

Qualifying income means your gross rental income (before expenses) plus any self-employment income. And crucially, it's your share of the rent that counts towards your figure.

MTD for Income Tax is being phased in like this:

Over £50,000: from 6 April 2026
Over £30,000: from 6 April 2027
Over £20,000: from 6 April 2028
£20,000 or under: not yet required to join

So imagine a couple owning a property that brings in £60,000 in rent, split 50/50. Each person counts £30,000 as their share — not the full £60,000. That changes when each of them is brought into MTD.

It's entirely possible for two co-owners to join at different times, or for one to be required while the other isn't yet. Always work it out per person.

What you'll each do once you're in

Once you're within MTD, the routine is the same as for any landlord:

Keep digital records of your share of income and expenses.
Send four quarterly updates to HMRC across the tax year. These are cumulative year-to-date totals from 2025-26 onwards, so each update simply restates the running total.
Submit one final declaration after the tax year ends, which pulls everything together.

The standard quarterly periods end on 5 July, 5 October, 5 January and 5 April, with deadlines of 7 August, 7 November, 7 February and 7 May. The final declaration is due by 31 January following the end of the tax year — the same date Self Assessment always used.

If you both own the property, you'll each do this for your own share, separately. Two sets of records, two final declarations.

A few practical tips for joint owners

Agree your split in writing so you're both recording the same percentages.
Keep one tidy record of the property's full income and costs, then each take your share from it. This avoids two people adding up figures differently.
Track expenses the moment they happen — a repair, an insurance renewal, a letting agent fee — and apply your share straight away.
Don't assume you join at the same time. Check each person's qualifying income against the thresholds.

Doing it yourself is very doable

If this all sounds manageable, that's because it genuinely is. You don't necessarily need an accountant just because a property is shared — you simply need a clear, consistent way to record your portion and file on time.

This is where simple software earns its keep. Quarterwise keeps your digital records and files your quarterly updates and final declaration straight to HMRC, so you each handle your own share without the fuss. Two co-owners can each run their own straightforward setup and stay perfectly in step.

Shared property, separate paperwork, and a system that quietly does the heavy lifting. That's all there really is to it.

This article is general information, not tax advice. Please check your own circumstances with HMRC or a qualified accountant.