Quick answer: Using a letting agent doesn’t remove your MTD obligations; the rental income and expenses are still yours to report. You need digital records of rent received (even where the agent deducts fees before paying you), agent commission, and any expenses the agent pays on your behalf, not just the net amount that lands in your bank account.
It’s a reasonable assumption that if an agent is managing the day-to-day of a rental property, they’re handling the tax admin too. They’re usually not, and the digital record-keeping obligation under MTD stays with you as the landlord.
Why net payments from your agent aren’t enough on their own
Most letting agents deduct their commission and any expenses they’ve paid (repairs, safety certificates, referencing fees) before transferring the balance to you. If your bank feed only captures that final net payment, your digital records will understate both your gross rental income and your allowable expenses, both of which need to be reported separately, not netted off, under MTD.
What to get from your agent
- A monthly or quarterly statement showing gross rent collected, commission deducted, and any expenses paid on your behalf, broken down individually.
- Invoices or receipts for any repairs, maintenance, or certificates the agent arranged, since these are needed for correct expense categorisation. See landlord allowable expenses.
- Confirmation of any deposit-related transactions, since deposits themselves generally aren’t income, but forfeited deposits or deductions can be.
Recording it correctly in your MTD software
The cleanest approach is recording gross rent as income and agent commission as a separate allowable expense, rather than only logging the net transfer. This keeps your records accurate for both your quarterly updates and, longer term, gives you a clearer picture of what the agent relationship is actually costing you.
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