MTD for Landlords

Yes – a dedicated property bank account is required to use THP’s Platinum Service and Hammock software. This is considered best practice regardless of MTD – mixing personal and rental transactions in a single account slows bookkeeping, reduces accuracy, and increases the risk of errors. If you don’t already have a separate account, we can help you set up a free property bank account with Hammock.

Joint ownership adds a layer of complexity that catches many landlords out. HMRC’s default assumption for married couples is that income is split 50/50 – but if your actual ownership proportion is different, HMRC will usually tax you 50/50 unless you make a valid Form 17 declaration and can evidence unequal beneficial ownership (for example, with a declaration or deed). Getting the split right matters, because it directly affects both partners’ tax bills. Our team handles exactly this kind of mixed-ownership situation routinely, and can advise on the most tax-efficient way to structure your reporting.

Properties owned by a limited company are subject to Corporation Tax, not Income Tax, and are not covered by MTD for Income Tax. However, if you have a combination of personally held and company-held properties, your personal and corporate tax positions need to be managed in parallel. THP can handle both — and can advise on whether the structure of your portfolio still makes sense in the current tax environment.

It’s technically possible to use a spreadsheet alongside “bridging software” that converts your data into an MTD-compatible format for submission. In practice, most landlords find this approach more complicated than it sounds – particularly once quarterly deadlines are recurring throughout the year. Purpose-built software like Hammock is more reliable, considerably less time-consuming, and far less likely to produce errors. Since we include Hammock free with our Platinum Service, there’s no financial reason to continue using spreadsheets.

HMRC is introducing a points-based penalty system for MTD for Income Tax. Each missed quarterly update earns you a penalty point and, if you accumulate enough points, you’ll receive a financial penalty. HMRC has confirmed it won’t apply penalty points for late quarterly updates in the first tax year of mandatory MTD (2026/27 for those above the £50,000 threshold) – but penalties for late tax returns and late payment can still apply from day one. With THP preparing and submitting your quarterly updates on your behalf, you won’t need to worry about any of this.

That’s a fair question, and we’d rather earn your business than just ask for it. What we’d say is this: MTD for landlords isn’t just a compliance change – it’s a change that requires your accountant to be proactively involved throughout the year, not just at Self-Assessment time. If your current accountant isn’t already talking to you about your MTD strategy, software setup and quarterly process, it’s worth asking why. We’re happy to have that conversation with you, with no obligation, so you can judge for yourself whether THP offers something better.