The best MTD software for landlords

If you weren’t already aware, the tax landscape for unincorporated landlords is changing in the UK. From April 2026, landlords who earn above £50,000 per year will need to switch to the digital tax for landlords system as part of the Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) scheme. 

What this means is that you’ll need to begin keeping digital records and submitting them on a quarterly basis to HMRC using  MTD software for landlords. You’ll need to ensure that you choose the right software so that you ensure compliance with digital tax for landlord processes. Here, we’ll walk you through everything you need to know about MTD software for landlords. 

MTD software for landlords?

As mentioned above, MTD for ITSA will be phased in from April 2026 for sole traders and landlords earning above the £50,000 threshold. Landlords earning above £30,000 will have to start implementing MTD from April 2027. 

The MTD software for landlords  you choose must perform three key functions:

1. Digital record keeping: all income and expense records need to be stored digitally
2. Quarterly updates: it will need to support you in being able to submit a summary of your property finances to HMRC every three months
3. Final declaration: it will need to allow you to submit the end-of-year figures that replace the Self Assessment

Here’s what you should be looking out for with MTD software for landlords

When selecting an MTD compliance software for landlords, you should look at prioritising several features beyond basic HMRC approval. The software should offer seamless bank feeds to automate the matching of rent payments and expenses. This will automatically minimise manual data entry. 

Also, you should look for robust portfolio tracking capabilities that allow you to easily attribute income and expenditure to specific properties, which is essential for accurately calculating profitability per unit. ]

Another thing to look out for is if you have other income streams; make sure that the platform can handle mixed income streams and that it can consolidate multiple MTD filings. Lastly, consider ease of use and the customer support each platform will give you. A complex system with poor documentation can quickly turn quarterly submissions into a very stressful situation. 

Generalist vs. specialist: which type is for you?

There are two main MTD software options available for landlords, each with specific advantages. Let’s take a look at them in more detail below. 

Generalist accounting software (Xero, QuickBooks, FreeAgent)

This type of software is fully MTD compliant and extremely robust, and is perfect for small businesses. The advantages of generalist accounting software are that it is highly scalable with an excellent audit trail. They are preferred by most accountants and are perfect for landlords with mixed income streams. 

The one disadvantage, however, is that this type of software is not specifically built for property management, which means that you’ll need to use tracking categories to separate income and expenses for each property. 

Here’s more detail on the types of generalist MTD software for landlords: 

• Xero: Starts from £7-£16/month and is accountant-friendly, with powerful bank feeds, and is excellent for mixed income. 
• FreeAgent: It is often free if you bank with NatWest, RBS, or Mettle. It has a simple user interface and is great for smaller portfolios or landlords who also freelance.
• QuickBooks: Varies by package, but has robust reporting features, is a well-known brand and has a strong mobile app for expense tracking.

Specialist Landlord Software (Hammock, Landlord Studio, Clear Books Free)

Specialist MTD software for landlords is built by landlords, which means that the platform is specific to property,  tenancies and rental cycles. The positives here are that these platforms are more intuitive when it comes to property tracking, automated rent matching and use more simplified dashboards focusing on property yield. 

The negatives, however, are that these platforms may have fewer advanced accounting features compared to generalist platforms. Often, they require bridging software to submit data to HMRC. 

• Hammock: Pricing starts from approximately £8 per month and is exclusively built for landlords with strong bank integration. It also incorporates real-time tax calculations. 
• Landlord Studio: This platform ranges from free to £30 per month. It is a mobile-first software and is excellent for on-the-go expense and receipt tracking. 
• Clear Books Free: It is free for sole landlords and offers MTD submissions for free, which is great for budget-conscious, single-property landlords. 

So, which MTD software is best for landlords? 

Before making your final decision, be sure to ask yourself the following critical questions: 

• Do I use an accountant? (Accountants will typically prefer working with Xero or QuickBooks for their comprehensive features.)
• Do I have a mixed income? (If you are both a landlord and a sole trader, a generalist platform is best for consolidating MTD filings.) 

• Do I need a free option? (If you are worried about finance, especially for smaller portfolios, then look at more specialist platforms like Clear Books or QuickFile.)

• Do I hate spreadsheets? (If you are looking for simplicity and property-specific reporting, look for a specialist  tool like Hammock or Landlord Studio.)

It is important to remember that digital tax for landlords is going to be a permanent change, so now is the best time to start keeping digital records to save work in the future.  The MTD software for landlords you choose should be able to simplify your quarterly submissions, not make your life more complicated. So, you could also start with a free trial with one of these platforms to see which one best suits your personal workflow.

For more information on landlord insurance and managing your rental property efficiently, feel free to visit our advice centre. Otherwise, make sure to get in touch with our friendly team of experts at CIA Landlord Insurance on 01788 818 670.