Best MTD Software for Landlords & Self-Employed 2026
Last updated:
The best MTD software for landlords depends on your situation. LandlordOS suits landlords of any portfolio size with simple requirements (free for 1-2 properties). If you're self-employed with rental income, FreeAgent handles both well. Landlord Vision excels at detailed accounting. QuickBooks and Xero work if you already use them.
What MTD software must do
MTD-compatible software must keep digital records, calculate income and expenses, and submit quarterly updates plus an annual declaration to HMRC.
Core requirements
- Digital record-keeping: Income and expenses stored digitally
- HMRC API connection: Direct submission to HMRC
- Quarterly updates: Submit income/expenses quarterly
- End of period statement: Annual summary of each income source
- Final declaration: Confirm final figures for tax return
Nice-to-have features for landlords
- Property-by-property tracking
- Certificate and compliance reminders
- Receipt scanning and storage
- Statement upload & AI import
- Reports for accountants
Top picks by situation
Different software suits different landlord situations. Here are our recommendations.
Best for most landlords: LandlordOS
- Best for: Self-managing landlords of any portfolio size
- Price: Free for up to 2 properties, from £9/month for unlimited
- Why: Built specifically for UK landlords. Combines compliance tracking with MTD. Simple to use without accounting knowledge.
Best for accounting focus: Landlord Vision
- Best for: Landlords who prioritise detailed financial tracking
- Price: From £12/month
- Why: 15+ years of landlord accounting. Comprehensive reporting. Strong MTD track record from the pilot.
Best if you're already using it: QuickBooks/Xero
- Best for: Landlords with other businesses already using these
- Price: From £14/month (QuickBooks), £15/month (Xero)
- Why: No need to learn new software. Property income integrates with existing accounts.
Best for spreadsheet users: Bridging software
- Best for: Landlords who want to keep using spreadsheets
- Price: Varies (often per-submission or low monthly)
- Why: Keep your existing spreadsheet workflow. Software bridges to HMRC for submission.
MTD for self-employed landlords
If you're self-employed and also receive rental income, you'll need to report both income streams through MTD. The right software makes this manageable.
Do you need MTD as a self-employed landlord?
You'll be required to use MTD if your combined gross income from self-employment AND property exceeds the threshold:
- April 2026: £50,000+ combined income
- April 2028: £30,000+ combined income
If your total income from both sources exceeds these thresholds, you must submit quarterly updates to HMRC through compatible software.
Combining personal and business finances
Self-employed landlords face a common challenge: keeping personal expenses, business expenses, and property expenses separate. Good MTD software helps by:
- Multiple income sources: Track self-employment and rental income separately
- Automatic categorisation: Upload statements and let AI categorise your expenses
- Clear reporting: Separate summaries for each income type
- Single submission: One quarterly update covers all your income
Best software for mixed income
- FreeAgent: Excellent for self-employed with property income as secondary
- LandlordOS: Best if property is your main income source
- QuickBooks: Good all-rounder if you need detailed business accounting
Allowable expenses for landlords
Your MTD software should help you track all allowable expenses to reduce your tax bill. Here's what you can claim.
Common deductible expenses
- Letting agent fees: Management fees, tenant finding fees
- Legal and professional fees: Accountants, solicitors (for property matters)
- Insurance: Buildings, contents, landlord liability, rent guarantee
- Ground rent and service charges: Leasehold property costs
- Maintenance and repairs: Fixing (not improving) the property
- Utility bills: If you pay them (not recharged to tenants)
- Council tax: During void periods
- Advertising: Rightmove, OpenRent, or other listing fees
- Travel costs: Visiting properties, meeting tenants (not commuting)
- Home office costs: Proportional if you manage from home
What you can't claim
- Improvements that add value (new bathroom, extension)
- Personal use portion of mixed-use properties
- Mortgage capital repayments (interest is partially relieved via Section 24)
- Your own labour on property work
Section 24 mortgage interest restriction
Since April 2020, landlords can only claim a 20% tax credit on mortgage interest, not a full deduction. Your software should handle this calculation automatically when generating your tax figures.
Why software helps with expenses
- Receipt scanning: Photograph receipts, software extracts details
- AI categorisation: Automatically tag property expenses from uploaded statements
- Nothing missed: Reminders for recurring costs
- Audit trail: Evidence ready if HMRC asks questions
Full comparison table
Compare key features across the main MTD-compatible options for landlords.
| Software | Price (from) | Landlord-specific | Ease of use | Best for |
|---|---|---|---|---|
| LandlordOS | Free / £9/mo | ✓ Yes | Very easy | Any portfolio size |
| Landlord Vision | £12/mo | ✓ Yes | Moderate | Accounting focus |
| Arthur Online | £15/mo | ✓ Yes | Moderate | Agents & landlords |
| Hammock | Free / £6/mo | ✓ Yes | Easy | Simple tracking |
| QuickBooks | £14/mo | ✗ General | Moderate | Existing users |
| Xero | £15/mo | ✗ General | Moderate | Existing users |
| FreeAgent | £14/mo | ✗ General | Easy | Self-employed mix |
| Bridging software | ~£50-100/year | Varies | Requires setup | Spreadsheet users |
Landlord-specific software
Software built specifically for landlords understands property-specific needs like per-property tracking, tenancy management, and compliance.
LandlordOS
- Purpose-built for UK landlords with portfolios of any size
- Combines compliance tracking with financial management
- Clean, modern interface
- Free tier for single property
- MTD submission built-in
Landlord Vision
- Established platform with 15+ years history
- Strong on detailed accounting and reporting
- Mobile apps for iOS and Android
- Participated in MTD pilot from the start
- Good for landlords who want comprehensive financials
Hammock
- Simple, streamlined approach
- Free tier available
- Good for landlords who want minimal complexity
- MTD compatible
- Less feature-rich than alternatives
Arthur Online
- Originally for letting agents, now serves landlords too
- Strong on property management operations
- Good for landlords considering agency management
- Higher price point
- More features than many landlords need
General accounting software
General accounting packages work for landlords but require more setup and don't understand property-specific concepts natively.
QuickBooks
- Well-known, widely used accounting software
- Strong bank integration and automation
- MTD compatible across all plans
- Need to set up property tracking manually
- Good if you have other businesses too
Xero
- Cloud-first accounting with good reputation
- Large ecosystem of add-ons
- MTD compatible
- Need to configure for property tracking
- Accountants often recommend/use Xero
FreeAgent
- Designed for self-employed and small businesses
- Very user-friendly interface
- Free with some banks (NatWest, RBS)
- Good for landlords with mixed income sources
- Less property-specific than dedicated tools
Spreadsheet bridging options
If you want to keep using spreadsheets, bridging software can submit your data to HMRC while you maintain your existing workflow.
How bridging works
- You keep records in your spreadsheet as normal
- Export or copy data to the bridging software
- Bridging software formats and submits to HMRC
- You receive confirmation of submission
Considerations
- Pro: Keep your existing spreadsheet workflow
- Pro: Often cheaper than full software
- Con: Two-step process for each submission
- Con: Your spreadsheet must meet digital record requirements
- Con: Less automation than integrated software
Bridging software options
- HMRC's own software (free, basic)
- 123 Sheets (designed for spreadsheet users)
- Various accountant-provided bridging tools
How to choose
Consider your portfolio size, existing tools, comfort with technology, and whether you work with an accountant.
Questions to ask yourself
- How many properties do you have? Simple tools for 1-5, more comprehensive for 5+
- Do you use an accountant? Check what they recommend or can access
- What do you already use? Switching cost is real
- What else do you need? Just MTD or property management too?
- What's your budget? Options from free to £30+/month
Decision flowchart
- 1-2 properties, simple needs: LandlordOS free tier or Hammock
- 3+ properties, want simplicity: LandlordOS Pro (unlimited properties)
- Any size, accounting priority: Landlord Vision
- Already using QuickBooks/Xero: Stick with it
- Love spreadsheets: Bridging software
- Work with accountant: Ask what they prefer
Frequently asked questions
Is free MTD software good enough?
For simple portfolios, yes. LandlordOS and Hammock have free tiers that meet MTD requirements. LandlordOS is free for up to 2 properties with basic expense tracking. You may want paid features as you grow, but free is a valid starting point.
What free MTD software options are there for landlords?
Several options offer free tiers: LandlordOS (free for up to 2 properties), Hammock (free basic tier), and HMRC's own software (very basic). FreeAgent is free with some banks like NatWest and RBS. Each has limitations - check what's included before committing.
Can I use HMRC's free MTD software?
HMRC offers free software that meets the minimum legal requirements, but it's very basic. It handles submissions but lacks features like bank feeds, receipt scanning, or automatic categorisation. Most landlords find it easier to use a proper accounting tool, even a free one.
Can I switch software later?
Yes, but plan for data migration. Move at the start of a tax year for cleanest transition. Export your data before cancelling any subscription.
Do I need software if my accountant handles everything?
You still need to keep digital records. Your accountant may provide software access, or you keep records and they submit. Discuss with them before choosing.
What if my income is just under the threshold?
Start using software now anyway. Thresholds may drop, and good record-keeping helps regardless. The free tiers make this low-risk.
Do I need MTD software if I'm self-employed with rental income?
If your combined self-employment and rental income exceeds £50,000 (from April 2026), yes. The threshold drops to £30,000 from April 2028. Your software needs to handle both income types. Most general accounting software and landlord-specific tools can manage this.
What's the best free option for a single property?
LandlordOS offers a genuinely free tier for up to two properties that includes MTD compliance, expense tracking, and compliance reminders. It's built specifically for UK landlords, so you won't need to configure property categories manually.
Managing this yourself?
LandlordOS helps UK landlords stay compliant and organised:
- Automatic compliance reminders for Gas Safety, EICR, EPC
- Document storage with AI-powered certificate reading
- Tenancy tracking and rent management
LandlordOS tip
Don't overthink it. Pick a tool that feels comfortable, start using it for one property, and see how it works. You can always switch. The worst choice is no choice—starting to use something, anything, is better than scrambling before your first deadline.