MTD when your properties are split between an SPV and your own name

Raj is fictional, but his portfolio will feel familiar to many landlords. He owns five properties: three in his own name and two through a limited company set up as a special purpose vehicle (SPV). This guide explains why Making Tax Digital (MTD) treats those groups separately, then helps you decide how to manage them in software.

MTD follows the legal owner of the rental income

Raj starts by separating the income that belongs to him from the income that belongs to his company. The rent from his three personal properties appears on the property pages of his Self Assessment tax return. That is the property income HMRC considers when it tests his personal MTD position.

The SPV is a separate legal person, so the rent from its two properties belongs to the company. The company records that income in its accounts and deals with corporation tax through its Company Tax Return, usually filed on form CT600. Those rents do not form part of Raj’s MTD quarterly updates.

Suppose the three personal properties produce £42,000 in gross rent and the two company properties produce another £30,000. The whole portfolio brings in £72,000, but Raj’s property income for the personal MTD test is £42,000. If Raj also has sole-trade income, he must add that qualifying income before checking the threshold. The MTD threshold calculatorhelps you work through the same calculation with your own figures.

Company salary and dividends stay outside this calculation

Raj may receive a salary or dividends from the SPV, but neither amount is qualifying income for the MTD threshold. His salary is employment income taxed through Pay As You Earn (PAYE), while his dividends are investment income. For this test, he combines his gross personal property income with any gross sole-trade income.

Keeping those categories separate prevents two opposite mistakes. Raj does not need to prepare MTD updates for the company’s rents, but he cannot ignore the rents from properties held in his own name. Each legal owner still needs the records and returns that apply to it.

Moving a personally held property into a company can create other tax consequences, including Stamp Duty Land Tax and Capital Gains Tax. If you are considering incorporation, ask an accountant or tax adviser to review your circumstances before you make the transfer. MTD admin is only one part of that decision.

Treat personal MTD and company accounts as two jobs

Raj needs digital records and MTD submissions for his personal property business. He also needs bookkeeping and company accounts for the SPV. Although both jobs involve rental income, they belong to different taxpayers and may need different software features.

He can choose one accounting platform that supports both jobs, usually through separate organisations or subscriptions. Alternatively, he can use a property-focused MTD product for his personal rentals and a separate accounting product or accountant-led process for the SPV. One arrangement is not automatically better than the other. The right choice depends on who keeps each set of records, which submissions the product supports, and whether Raj wants both businesses in the same interface.

The software selector asks about the personal property side, while the software comparison shows which products also support company accounts. If you need the wider rules before choosing a product, start with the main MTD guide.

Common questions about mixed portfolios

All my properties are in an SPV. Does MTD apply to me?

Company-held rents do not enter your personal MTD threshold test. If every property is held by a limited company and you have no personal property or sole-trade income, MTD for Income Tax does not apply to you. The company still has its own bookkeeping, accounts and corporation tax obligations.

Do dividends or salary from my SPV affect the threshold?

Dividends and salary from the company do not count as qualifying income for this threshold. Add together your gross income from personally held property and any sole trade when you check whether MTD applies.

My personal rents are below the threshold, but my whole portfolio is above it. Which figure matters?

HMRC uses the qualifying income that belongs to you personally, not the combined rent from you and your company. In Raj’s example, that means £42,000 rather than £72,000. Check the result again as the threshold falls to £30,000 from 6 April 2027 and £20,000 from 6 April 2028.