Quick answer
Landlords are in MTD if gross rental income, plus any self-employment income, is over the threshold. It’s rent before expenses that counts, and only your share if the property is jointly owned.
It’s gross rent that counts
The MTD threshold looks at your rental income before expenses, not your profit. A landlord collecting £2,500 a month has £30,000 of qualifying income, even if mortgage interest and repairs take most of it.
Jointly owned property
If you own a property with someone else, only your share of the rent counts towards your threshold. A couple splitting £60,000 of rent equally each have £30,000 of qualifying income. HMRC has also introduced some easements for joint owners, so read our guide to jointly owned property for how to report.
UK and overseas property
Income from UK and overseas property both count towards the threshold. They’re reported as separate property businesses, each with its own quarterly updates.
Landlords with a job
Your salary doesn’t count. Only your property income, plus any self-employment income, is added up for the threshold.
Using a letting agent
Your agent’s statements are a useful source for your records, but it’s still your responsibility to keep digital records and send updates. Ask your agent how they can share statements with you, ideally in a format your software can import.
What you can claim
MTD doesn’t change which expenses are allowable. Residential mortgage interest still gets relief as a basic-rate tax credit rather than as a normal expense. See our guide to MTD expenses for the categories.