MTD for Income Tax with more than one business or income

If you have more than one business, Making Tax Digital (MTD) for Income Tax means a separate set of quarterly updates for each self-employment and each property business. All your UK lettings count as one property business, so a sole trader with three buy-to-lets sends two sets of updates each quarter. At the end of the year you still file one final declaration covering everything.

Do you join MTD if your income is split across several sources?

Yes, if the total is over the threshold. HMRC adds turnover from every sole trade to all your property income, before expenses, to get your qualifying income. Its qualifying income guidance gives the example of £25,000 of rent plus £27,000 of self-employment turnover, which makes £52,000.

PAYE salary, pensions, dividends, savings interest and partnership profit shares do not count. So a £40,000 employee with £18,000 of rent is not in for April 2027. Our qualifying income guide covers the detail, and the MTD checker gives a quick answer.

How many quarterly updates do you send?

You send one set for each business. HMRC’s quarterly updates guidance, updated 16 October 2026, says you send updates every three months “for each self-employment and property business you have”.

What counts as a business matters here. HMRC’s guidance on choosing agents says “all income from UK property counts as one business” and all foreign property income counts as another, while each separate trade is its own business. This follows sections 264 and 265 of the Income Tax (Trading and Other Income) Act 2005.

Each update is a running total of income and expenses by category from 6 April to the end of the period. HMRC does not see individual receipts. If a business had no activity in a quarter, you still send a nil update.

Are the deadlines the same for every business?

Yes. Every update for the 2027-28 tax year follows the same four deadlines: 7 August, 7 November, 7 February and 7 May. If your accounting period runs from 1 April to 31 March, you can choose calendar quarters ending 30 June, 30 September, 31 December and 31 March instead. The deadlines do not change.

You must pick calendar quarters in your software before your first update, and you cannot switch during the tax year. See our MTD quarterly deadlines for the full calendar.

What does the final declaration cover?

One final declaration covers all your income for the year. It brings together the quarterly totals from each business and adds your other income, such as employment, dividends, savings interest and capital gains. You make tax adjustments, claim reliefs and submit by 31 January after the tax year, which is also when you pay.

Our guide to the MTD final declaration walks through the steps.

Can you use different software for each business?

You can, within limits. GOV.UK’s software guidance, updated 13 July 2026, says you can use more than one product, for example a builder who is also a landlord. But you “can only use one product for each separate submission”. A landlord cannot split one property business’s quarterly updates across two products.

If you use more than one product, they must work together to cover every submission, including the final declaration. Bridging software can submit from spreadsheets. When you compare products, check that each one supports:

• every self-employment you have
• UK property, and foreign property if you let abroad
• jointly owned property, if you co-own a let
• the final declaration and your other income
• calendar quarters, if you want them

How to sign up with several businesses

HMRC’s sign up guidance, updated 13 October 2026, says to check each business when you sign up.

1. Sign in to the MTD for Income Tax sign up service with your Government Gateway details.
2. Check the list of self-employments and property businesses HMRC holds for you.
3. Add any missing business, with its start date if it began in the last two tax years.
4. Include sources that stopped after your last return, so HMRC’s records are correct.
5. Tell HMRC before the tax year starts if every source has stopped, or you will still need to use MTD.

Our step-by-step guide on how to sign up for MTD has more.

Which applies to you?

• If you are an employee with a side business, only the side business turnover counts towards the threshold.
• If you have a sole trade and lettings, add both turnovers. Expect two sets of updates.
• If you co-own a let, count only your share. See MTD for jointly owned property.
• If you are a partner in a partnership, your profit share does not count. HMRC has not yet set a start date for partnerships.

What to do now

1. Add up turnover from every sole trade and all property income on your 2025-26 return.
2. List your businesses as HMRC sees them: each sole trade, one UK property business and one overseas property business.
3. Choose software that covers every submission you need before 6 April 2027.

Frequently asked questions

Do I need separate quarterly updates for each rental property?

No. All your UK lettings form one UK property business, so they share one set of quarterly updates. Foreign lettings are a separate business with their own updates.

I have two sole trades. How many updates do I send each year?

Two sets of four, so eight quarterly updates, plus one final declaration. If you also let property in the UK, add another four.

Does my salary count towards the MTD threshold?

No. PAYE employment income is excluded from qualifying income, though you still report it in your final declaration.

Can I use one product for my business and another for my lettings?

Yes. HMRC allows more than one product as long as each separate submission uses only one product and they cover everything between them.

Do I file more than one tax return if I have several businesses?

No. You make one final declaration by 31 January covering all your income for the year.