Key takeaways
- Under MTD for Income Tax the landlord remains responsible for digital records, quarterly updates and the final declaration, even if a letting agent collects the rent.
- A letting agent can only submit for a landlord if it has an HMRC agent services account and the landlord has authorised it.
- A landlord can have one main agent and any number of supporting agents for MTD for Income Tax.
- A supporting agent can keep records and send quarterly updates but cannot submit the tax return or view tax calculations.
- All UK rental income is one business for MTD, so a landlord with two letting agents still sends one combined update each quarter.
- The MTD threshold uses gross rent before the agent's fees, so £32,000 of rent with £3,840 of management fees still means joining in April 2027.
- From 2027-28, landlords who must use MTD get penalty points for late quarterly updates, with a £200 penalty at 4 points.
The landlord, not the letting agent, is responsible for Making Tax Digital (MTD) for Income Tax. A letting agent can keep the records and send quarterly updates only if the landlord authorises it as a tax agent through HMRC. Most letting agents do not offer this, so in practice the landlord or their accountant submits, using the agent’s rental statements as the source.
Who is responsible for MTD when a letting agent manages the property?
The landlord is. Tax falls on the person entitled to the rent. HMRC’s Property Income Manual at PIM1030 says that “receiving rent as agent of another person does not mean the agent receives the income for tax purposes.”
So if your qualifying income is over the threshold, you must keep digital records, send quarterly updates and file a final declaration, whoever collects the rent.
| Qualifying income | Return tested | Join from |
|---|---|---|
| Over £50,000 | 2024-25 | 6 April 2026 |
| Over £30,000 | 2025-26 | 6 April 2027 |
| Over £20,000 | 2026-27 | 6 April 2028 |
Do letting agent fees reduce the MTD threshold?
No. Qualifying income is gross rent before expenses, and management fees are an expense. A landlord whose tenants pay £32,000 a year, with 12% management fees of £3,840, receives £28,160 from the agent. Their qualifying income is still £32,000, so they join on 6 April 2027.
Check the gross figure on your agent’s annual statement, not the net payments into your bank. Our qualifying income guide and the MTD checker help you work it out.
Can a letting agent submit quarterly updates for a landlord?
Yes, but only as an authorised tax agent. HMRC’s guidance on choosing agents, updated 28 August 2025, lets landlords appoint one main agent and any number of supporting agents for MTD for Income Tax. Self Assessment still allows only one agent.
| Task | Main agent | Supporting agent |
|---|---|---|
| Keep records, send quarterly updates | Yes | Yes |
| Sign the landlord up | Yes | Yes |
| Submit the final declaration | Yes | No |
| View tax calculations | Yes | No |
| View or appeal penalties | Yes | No |
A letting agent that offers MTD submissions would normally be a supporting agent, with the landlord’s accountant as main agent. A supporting agent sees only business and property income. It cannot request repayments, change payments on account or receive penalty notices.
How does a letting agent get authorised?
The process runs through HMRC’s agent services. HMRC’s MTD agent pages and the GOV.UK guidance set out these steps:
- The agent creates an agent services account with HMRC, if it does not have one.
- The agent sends an authorisation request from that account, as either a main or a supporting agent.
- The landlord receives a consent statement and accepts or declines it.
- The agent starts work. Once authorised, it uses compatible software to keep records and send updates within its permissions.
If the landlord declines, HMRC carries on working with any agent already authorised. An agent who signed the landlord up for MTD is treated as the main agent.
What if a landlord uses more than one letting agent?
You still send one update each quarter for your UK property business. GOV.UK says “all income from UK property counts as one business” and all foreign property income counts as another. Where several agents work on the same business, one combined update must go to HMRC for each period.
HMRC also says it cannot restrict a supporting agent’s access to one business. So if Agent A manages your flat in Leeds and Agent B your house in York, you cannot have each submit separately for its own property. One person, usually you or your accountant, must combine both statements into a single update. See MTD with multiple income sources.
What should a letting agent’s statement show?
Each update needs income and expenses totals by category from 6 April. HMRC’s quarterly updates guidance says these are running totals, not individual receipts. Ask your agent for statements that match HMRC’s quarters, ending 5 July, 5 October, 5 January and 5 April, and that show:
- gross rent due and received, per property
- management and letting fees
- repairs and maintenance paid on your behalf
- ground rent, service charges and insurance paid
- deposit deductions kept as income
If your agent’s statements run to calendar months, you can ask your software provider whether it supports calendar quarters ending 30 June, 30 September, 31 December and 31 March. You must choose these before your first update. For co-owned lets, see MTD for jointly owned property.
Who pays the penalty if an update is late?
The landlord does. GOV.UK’s penalty guidance, updated 12 March 2026, says that from the 2027-28 tax year anyone required to use MTD gets a penalty point for each late quarterly update. At 4 points, a £200 penalty applies. A supporting agent cannot see or appeal penalties, so only you or your main agent will. Our MTD penalties guide explains the rules.
What about non-resident landlords?
Letting agents of landlords who live abroad have separate duties. Under the Non-resident Landlord Scheme, the agent deducts basic rate tax from net rent each quarter unless HMRC has approved the landlord to receive rent with no tax deducted. GOV.UK’s guidance on paying tax on rent to landlords abroad says agents register on form NRL4 and send form NRLY by 5 July each year. Those duties continue whatever happens with MTD.
What landlords should do now
- Ask your agent whether it offers MTD submissions, and if so as main or supporting agent.
- Agree statement dates that match HMRC’s quarters, with gross rent and itemised costs.
- Decide who combines the figures if you use more than one agent.
- Authorise your accountant as main agent so someone can file the final declaration. Our landlord MTD guide covers software and sign up.
Frequently asked questions
Is my letting agent responsible for my MTD quarterly updates?
No. The landlord is responsible. A letting agent can submit only if it has an agent services account and you have authorised it.
Can a letting agent file my final declaration?
Only if you appoint it as your main agent. A supporting agent can send quarterly updates but cannot submit the tax return.
Do I count rent before or after my letting agent’s fees?
Before. Qualifying income is gross rent, and management fees are an expense deducted later.
I use two letting agents. Do they each send an update?
No. All your UK lets form one property business, so one combined update goes to HMRC each quarter.
Can I have an accountant and a letting agent both acting for me?
Yes. For MTD for Income Tax you can have one main agent and any number of supporting agents.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.
- Choose agents for Making Tax Digital for Income Tax (GOV.UK)
- Making Tax Digital for agents (HMRC campaign site)
- PIM1030: who is taxed on property income (HMRC manual)
- Send quarterly updates (GOV.UK)
- Penalties for Income Tax Self Assessment volunteers (GOV.UK)
- Paying tax on rent to landlords abroad (GOV.UK)