Your UK rentals, filed with HMRC under Making Tax Digital.
Keep records for each property you let, and file your quarterly updates, annual submission and final declaration from one place. Priced like any other income source, with no higher tier for landlords.
HMRC-recognised
Every UK property
No monthly subscription
How UK property works under MTD
Making Tax Digital for Income Tax has applied since 6 April 2026 if your qualifying income is over £50,000. Rent counts towards that figure before expenses, added to any self-employment turnover. The threshold falls to £30,000 in April 2027 and £20,000 in April 2028.
All the property you let in the UK is one business for HMRC, however many properties there are. Their profits and losses are added together, and you send one quarterly update for all of them.
In FileThat you give each property a nickname, so its records stay apart from the others. The nickname is only for you. HMRC receives one combined figure for your UK property business.
What you can file
Quarterly updates
Rent, lease premiums, other income and each expense category for your UK property business, as totals for the tax year so far. Rent a Room income and relief have their own boxes, which you fill in yourself.
Annual submission
Allowances, either the property income allowance or capital allowances, replacing domestic items and structures and buildings allowance, plus private use and balancing charge adjustments, and whether you are a non-resident landlord.
Adjustments to HMRC's summary
Once HMRC has calculated your year, you can adjust its summary of your UK property business before you finalise.
Final declaration
Check HMRC's calculation for the year, with your property income and your other income in it, and make your final declaration.
Keep your figures in a spreadsheet instead? See MTD bridging software.
Getting set up
Connect and add your business
Connect FileThat to HMRC and add your UK property business, with your National Insurance number and HMRC business ID.
Name each property
Give each property a short nickname, such as "12 Station Road", and add its records under it.
Keep your records
Add rent and costs as they happen, upload them in bulk, or keep them in a spreadsheet and upload that.
File each quarter
FileThat adds up the year so far across every property and you check the figures before anything goes to HMRC. Records you have filed are then locked.
Where your costs go
Mortgage interest
Record it as residential finance cost. It files as residential finance costs, which HMRC does not deduct from your rent: it gives a tax reduction at the basic rate of 20% instead.
Letting agent fees
Agent fees, and legal and professional costs, file together as HMRC's professional fees. Record the full rent your agent collected, and their fees as a cost.
Repairs and maintenance
Work that puts the property back to how it was. An improvement, such as an extension or a higher specification kitchen, is not a repair.
Running costs and travel
Insurance, and business rates and council tax, file as premises running costs. Motor and fuel files as travel costs. Anything else goes in other expenses.
What HMRC expects you to keep: HMRC digital record keeping.
Good to know
Amounts are in pounds
Every figure is entered and filed in pounds, to the penny. They are filed gross: rent before any costs are taken off, and each cost at the full amount you paid.
Expenses are itemised
Premises running costs, repairs, finance costs, residential finance costs, professional fees, cost of services, travel and other costs each have their own box. FileThat files them itemised, not as one total.
Holiday lets are ordinary lettings now
The furnished holiday lettings rules ended in April 2025. A UK holiday let is filed as part of your UK property business, like any other let.
UK and foreign property are separate
If you let property abroad too, that is a separate business with its own quarterly updates. All your UK properties share one update, and one credit, each quarter.
Letting abroad as well? See MTD for foreign property.
Straight answers
Do landlords need Making Tax Digital software?
If your qualifying income is over the threshold, yes. That is your rent before expenses, plus any self-employment turnover and foreign rent. The threshold is £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028.
How is mortgage interest reported?
Record mortgage interest on a residential let as residential finance cost, and FileThat files it as residential finance costs. HMRC does not take it off your rent. It gives a tax reduction at the basic rate of 20%, and any amount it cannot use yet is carried forward.
I have several properties. Do I file for each one?
No. All your UK lets are one property business, so a quarterly update covers every property together and uses one credit, whatever the number. You still keep each property's records apart in FileThat, under a nickname that is never sent to HMRC.
I own a property jointly. How does that work?
FileThat does not split figures between owners. Record and file your own share of the rent and costs, and your co-owner files theirs. Only your share counts towards your qualifying income. Property owned with a spouse or civil partner is usually taxed in equal shares.
My letting agent collects the rent. What do I record?
Record the full rent the agent collected for you, before their fees, and record their fees as agent fees. FileThat files those as professional fees, alongside legal and other professional costs, so both reach HMRC: the rent in full, and the fee as a cost against it.
What about furnished holiday lets?
The furnished holiday lettings rules were abolished from 6 April 2025. From then, a UK holiday let is reported as part of your ordinary UK property business, under the same rules as any other let, and FileThat files it that way.
What does it cost?
The same as any other income source: from £3.99 per new quarterly update, set by your income, with no higher tier for landlords. Your annual submission, final declaration and amendments are free, and there is no monthly subscription.
Every UK property, in one place
4 free credits, no card needed. Pay per quarterly update after that, with no monthly subscription and no higher tier for landlords.
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