What are my Making Tax Digital options as a landlord with two properties?

It depends on rent, not property count. If your share of rent from both, before expenses, was over £30,000 in 2025-26, Making Tax Digital starts on 6 April 2027. At £20,000 or less, you are exempt.

Making Tax Digital for Income Tax (MTD) means digital records and four quarterly updates a year. Two properties can put you either side of the line, so the first job is working out your own figure. GOV.UK calls it qualifying income: rent plus any self-employed turnover, before expenses. Wages, pensions and dividends do not count. This page follows GOV.UK as checked on 16 October 2026.

The test

If you own a property with someone else, only your share counts. HMRC's own example is £50,000 of rent shared equally, which counts as £25,000 each. Married couples and civil partners are normally taxed 50:50 on joint property, even with unequal shares, unless they have made a Form 17 declaration.

Worked examples: two lets, two rent levels

Rent level A: two flats let at £1,150 and £1,300 a month, so £13,800 and £15,600 a year, £29,400 in total.

Rent level B: two houses let at £1,400 and £1,450 a month, so £16,800 and £17,400 a year, £34,200 in total.

Level A shows how close two ordinary lets sit to the line: a modest rent rise or a small side business tips it. Level B shows how joint ownership can take a couple out of MTD altogether.

Your options if you are in

Software you run yourself is the cheapest route, and Hammock or a bridging tool is the better fit if you are organised and happy to send updates. An accountant is the better fit if you are selling, have foreign property or a tricky joint arrangement. Our tax plans start once our HMRC registrations are complete. Until then you can join the waitlist, and no payment is taken.

What this means for you

Both lets normally count as one UK property business, so one set of updates covers them, due by 7 August, 7 November, 7 February and 7 May. Mortgage interest must be kept as its own record and sent separately from other costs. If a property is jointly let, GOV.UK allows simpler records: your share of rent as one entry per category each quarter, and income-only updates with costs added after the year ends.

GOV.UK says there are no penalty points for late quarterly updates in 2026-27. At the Budget on 28 October 2026 the government said people who must join in April 2027 will get no penalty points for late 2027-28 quarterly updates too, though updates must still be sent. For them, the earliest a late update can earn a point is 7 August 2028. Four points bring a £200 penalty.

Steps to take now

1. Add up 2025-26 rent from both properties before any costs, using only your share of anything jointly owned.
2. Add any self-employed turnover. Leave out wages, pensions and dividends.
3. Compare with the table above, or use the free MTD check.
4. If you are under £30,000, repeat the sum for 2026-27 against £20,000.
5. If you are in, pick software or a service before 6 April 2027 and set mortgage interest up as its own category.
6. Joint owners: agree the split, and see the joint ownership guide.

More guides are in the landlord section.