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MTD for landlords: from bank statement to quarterly update
Last checked 15 Oct 2026 against the GOV.UK pages linked below. Not tax advice; follow the sources before relying on dates.
Most landlords already have the raw data for Making Tax Digital in their bank account. The work is sorting each line into the right property category and leaving out what is not income or expense. Here is how to do that from a bank statement export.
Can a bank statement be your MTD record?
A PDF statement on its own is not a digital record. But a CSV export, with each line given a date, amount and category in a spreadsheet or software, is the basis of one. GOV.UK says each record needs the amount, the date and the category. You keep the statements as evidence as well.
Getting the CSV
Most UK banks (Lloyds, NatWest, Barclays, HSBC, Monzo, Starling and others) let you export transactions as CSV from online banking. Choose 6 April 2026 to 5 October 2026 for the second update. If rent comes through a letting agent, their monthly statement is the better source for gross rent and fees.
Categorising rental lines (SA105)
- Rents received: tenant payments or the agent's gross rent (record agent fees as an expense, not net rent).
- Repairs and maintenance: tradespeople, materials for repairs.
- Letting and management fees, insurance, ground rent and service charges, legal and professional, utilities you pay.
- Residential finance costs: mortgage interest on its own line. It is restricted (a 20% tax reduction, not a deduction), so never mix it into other expenses.
Lines to leave out
- Tenancy deposits you hold or protect (not income while refundable).
- Transfers between your own accounts.
- Mortgage capital repayments (only the interest is a finance cost).
- Your Self Assessment tax payments.
- Personal spending on a shared account.
- Capital spending such as an extension (record separately).
Short on time before 7 November? The MTD Q2 catch-up kit (£39) reads your bank CSV in your browser, sorts each line into HMRC categories, flags anything unclear for you to check, and gives you cumulative totals plus a linked workbook for bridging software. Try the free preview first; 14-day refund.
Joint lets and the £90,000 simplification
If you own jointly, record only your share. If UK property turnover is under £90,000 you may categorise in less detail, but you must still flag restricted finance costs. See what records landlords need.
From totals to HMRC
Sum each category from 6 April, then send the cumulative totals through HMRC-recognised software. If your records are in a spreadsheet, that is bridging software linked to the sheet. The second update is due 7 November 2026.
Sources
- GOV.UK: Send quarterly updates
- GOV.UK: Create digital records
- GOV.UK: Find software for MTD for Income Tax
Related
- MTD Q2 catch-up kit (£39): bank CSV to cumulative HMRC totals, in your browser
- Making Tax Digital quarterly update from a spreadsheet
- MTD Q2 deadline: 7 November 2026
- MTD for landlords: from bank statement to quarterly update
- MTD for landlords: what records you need
FAQ
Can I use my bank statement for Making Tax Digital as a landlord?
A CSV export is a good starting point. Give each line a date, amount and SA105 category in a spreadsheet or software, and keep the statements as evidence.
How do I record mortgage payments under MTD?
Record the interest as a residential finance cost, separate from other expenses. Capital repayments are not an expense. GOV.UK allows recording the full payment and adjusting before your return.
Do tenancy deposits count as rental income?
Not while they are refundable and held for the tenant. Amounts you keep for damage or arrears may become income.
My agent pays me net rent. What do I record?
Record the gross rent as income and the agent's fees as letting and management expenses, using the agent's statement.