Jointly owned property is one of the areas of Making Tax Digital for Income Tax that can catch landlords out.
On the surface, it sounds simple enough. You receive rental income, you keep digital records and you send quarterly updates.
But HMRC’s current guidance gives joint property owners extra flexibility, and if you miss that detail you may set your records up in a more complicated way than necessary.
If you are a landlord who jointly owns property with a spouse, family member or another co-owner, it is worth understanding these rules before you choose software or begin your first quarterly update period.
Why Jointly Owned Property Needs Extra Attention
Under Making Tax Digital for Income Tax, UK properties are normally treated as one UK property business for reporting purposes.
However, jointly let property has its own practical rules around what can go into quarterly updates and how digital records can be kept.
That matters because many landlords do not own every property outright. Some own a buy-to-let with a spouse. Others hold inherited property with siblings or share ownership through another arrangement.
HMRC’s digital record-keeping direction and quarterly update guidance make clear that jointly let property should not always be handled in exactly the same way as solely owned property.
What Does HMRC Say You Can Include in Quarterly Updates?
HMRC says that if you have jointly let properties, in your quarterly updates you can choose to include either:
- all property income and expenses for those properties
- only your property income without expenses for those properties
That second option is the detail many landlords miss.
If you choose not to include expenses for jointly let properties in your quarterly updates, you must report those expenses at the end of the tax year before you finalise your Income Tax position and submit your tax return.
So quarterly reporting can be simpler, but it does not mean the expenses disappear. It means they may be dealt with later instead.
What Do You Still Have to Include During the Year?
Even if you choose the simpler option for jointly let property, HMRC says you still need to include:
- your property income for those jointly let properties
- any property income and expenses relating to properties that you solely own
This is important if you have a mix of jointly owned and solely owned properties.
You cannot treat everything in the same simplified way just because one property is jointly owned. The structure of your property portfolio matters.
How Can Digital Records Be Simplified for Jointly Owned Property?
HMRC’s digital record-keeping direction gives joint property owners useful easements.
For their share of income arising from jointly let properties, a landlord can create one digital record for each category of property income received during a quarterly update period.
For their share of expenses arising from jointly let properties, a landlord can create one digital record for each category of property expense incurred during a tax year.
In practice, that means the record-keeping burden for jointly owned property can be lighter than many landlords expect, especially if they are not trying to track every shared expense in a highly detailed way every quarter.
What If I Own Property Jointly With My Spouse?
The rules are still based on your own share.
Making Tax Digital does not turn a jointly owned rental property into one combined report for both owners. Each individual still needs to report their own position correctly.
That means you need to understand:
- what your share of the income is
- what your share of the expenses is
- whether you are choosing to include those expenses during the year or only at year end
- how your jointly owned property fits with any other property income you receive
If the ownership split is not straightforward, this becomes even more important.
What If I Have Jointly Owned and Solely Owned Properties?
This is where landlords often need proper help.
HMRC says your share of jointly let properties forms part of your UK property business, but solely owned properties still bring their own income and expenses into the picture.
That means you may have:
- jointly owned property income included in quarterly updates
- jointly owned property expenses included either quarterly or at year end, depending on your approach
- solely owned property income and expenses included in the normal way
The more mixed your portfolio is, the more valuable a clean reporting setup becomes.
Can the Simple Option Help Reduce Admin?
Yes, in the right circumstances.
If your jointly owned property records are harder to separate cleanly during the year, or if you want to avoid unnecessary complexity in quarterly updates, the income-only option for jointly let properties may make the process easier.
But simpler quarterly reporting is not always the same as better reporting. You still need to be confident that the year-end position will be complete and accurate.
Common Mistakes Landlords Should Avoid
Here are some common problems we expect to see:
- assuming jointly owned property follows exactly the same process as solely owned property
- forgetting that income still needs to be included even if expenses are left until year end
- mixing up total property figures with your personal share
- overlooking how jointly owned and solely owned properties interact within the same property business
- choosing software without checking whether it can handle your reporting approach clearly
These are not just technical issues. They can create messy records and extra accountancy work later.
The Practical Takeaway
If you jointly own rental property, do not assume you need to report it in the most detailed way every quarter.
HMRC’s guidance allows flexibility. In some cases, you can include only your share of the property income during the year and leave the shared expenses to be dealt with before finalising your tax position.
That can make MTD more manageable, but only if your records are set up properly from the beginning.
How AAR Certified Accountants Can Help
We help landlords understand what needs to go into quarterly updates, what can be dealt with later, and how to keep the digital record-keeping process practical and compliant.
If you own rental property jointly and want to avoid confusion before MTD starts, AAR Certified Accountants can help you set up the right reporting approach for your portfolio.
Disclaimer: This article is for general information only and does not constitute personalised tax advice. HMRC guidance and legislation can change, and the right approach depends on your circumstances.