How MTD will work for joint landlords

Making tax digital for income tax (MTD) is now only a year away becoming compulsory for the first taxpayers in April 2026.

MTD will apply to two types of taxpayer – sole traders and landlords. Given their larger numbers sole traders have been the main focus of discussion to date. However landlords face unique challenges when it comes to complying with MTD.

In this article we’ll use the case study of two siblings Angela and Ben to explore these challenges in more detail. In particular we’ll look at how some recently announced easements could make record keeping and reporting easier where rental properties are jointly owned.

A quick reminder of the rules

Before getting into our case study it’s worth a quick reminder as to what MTD involves.

MTD will represent a substantial change in record keeping and reporting for...