Best Tax Software for Landlords: Complete UK Comparison for 2026

What tax obligations do UK landlords have?

Understanding your tax obligations helps you choose software with the right features. UK landlords have several overlapping tax responsibilities that vary based on income level and property structure.

Self Assessment tax returns

All landlords with rental income must register for Self Assessment and file an annual return by 31 January following the tax year. You report total rental income, allowable expenses, and calculate profit. HMRC then determines your tax liability based on your overall income.

Making Tax Digital (MTD) - from April 2026

Landlords with total qualifying income over £50,000 must use MTD-compatible software from April 2026 to submit quarterly updates to HMRC. The £30,000-£50,000 bracket follows in April 2028. MTD replaces the annual Self Assessment return with four quarterly submissions plus an end-of-period statement.

Section 24 mortgage interest restriction

Since April 2020, mortgage interest is no longer fully deductible as an expense. Instead, you pay tax on rental profit before mortgage interest, then claim a 20% tax credit. This means higher-rate taxpayers lose relief on 20% of their mortgage interest. Software that automatically calculates this is essential.

Record-keeping requirements

HMRC requires landlords to keep detailed records of all rental income and expenses for at least 5 years after the 31 January filing deadline. Digital records through accounting software satisfy this requirement and make quarterly MTD submissions straightforward.

Multiple property tracking

While you can report combined income and expenses on your tax return, tracking each property separately helps you identify loss-making properties, calculate individual yields, and provides evidence if HMRC queries your figures.

What to look for in landlord tax software

Not all accounting software handles rental property tax well. General business accounting tools miss landlord-specific features. Here's what matters when comparing options.

Essential features for landlord tax software

• Per-property income and expense tracking: See profit and loss for each property individually, not just portfolio totals
• Allowable expense categorisation: Automatic categorisation of landlord-specific expenses (mortgage interest, repairs, insurance, letting agent fees, ground rent, service charges)
• Bank feed integration: Automatic import of transactions from your bank account eliminates manual data entry
• Receipt scanning and storage: Photograph receipts on the go, auto-categorise expenses, store digital copies for HMRC compliance
• Section 24 mortgage interest calculation: Automatic calculation of the 20% tax credit instead of full expense deduction
• Self Assessment or MTD submission: Either prepare data for annual Self Assessment or submit quarterly MTD updates directly to HMRC
• Rent tracking: Monitor which tenants have paid and which are in arrears, reconcile against rental income
• Accountant access: Let your tax adviser view your records without exporting files

MTD-readiness (future-proofing)

Even if MTD doesn't apply to you yet, choosing MTD-compatible software now means you won't need to switch later. MTD requires quarterly digital submissions directly to HMRC - something basic spreadsheets can't do without bridging software.

Compliance and property management integration

Some landlord-specific platforms combine tax features with property management: Gas Safety reminders, EICR tracking, EPC deadlines, tenant management. This reduces admin overhead by keeping everything in one system.

Detailed comparison: top tax software for landlords

Let's compare the main options based on landlord-specific features, pricing, and suitability for different portfolio sizes.

1. LandlordOS (Property Management + Tax)

Purpose-built for UK self-managing landlords. Combines property management (compliance tracking, tenant management, document storage) with accounting and tax features. The only platform that integrates property operations with tax in a single system.

Key features:

• Per-property income and expense tracking with automatic categorisation
• Statement upload with AI-powered transaction categorisation
• MTD quarterly submissions to HMRC (Pro+Accounts plan)
• Section 24 mortgage interest relief calculations
• Receipt scanning with AI document reading
• Compliance tracking (Gas Safety, EICR, EPC) alongside accounts
• Tenant management and rent tracking
• Accountant access for tax advisers

Pricing:

• Free (£0/month): 1-2 properties, basic compliance tracking, document storage, no accounting features
• Pro (£9/month): Unlimited properties, full compliance suite, AI document reading, no accounting/tax features
• Pro+Accounts (£15/month): Everything in Pro plus full accounting, statement upload & AI import, MTD submissions, per-property P&L, tax reporting

Best for: Landlords who want property management and tax in one system. Ideal for self-managing landlords with straightforward rental income.

2. Hammock

HMRC-recognised landlord accounting software. Focused specifically on rental property finances rather than general business accounting. Designed for landlords from the ground up.

Key features:

• Landlord-specific expense categories and reporting
• Bank feed integration with automatic categorisation
• MTD quarterly submissions to HMRC
• Per-property profit and loss tracking
• Receipt capture and storage
• Section 24 mortgage interest calculations

Pricing: From around £7/month depending on portfolio size

Best for: Landlords who want dedicated landlord accounting without property management features. Good for those already using separate property management software.

3. QuickBooks Online

Market-leading general accounting software with MTD compliance. Not landlord-specific but handles rental income alongside other business income. Popular with accountants.

Key features:

• Bank feed integration across major UK banks
• Invoicing and expense tracking
• MTD quarterly submissions to HMRC
• Receipt capture via mobile app
• Accountant access and collaboration tools
• Extensive app integrations

Limitations for landlords:

• No built-in per-property tracking (requires manual workarounds)
• Not designed for landlord-specific workflows
• Section 24 calculations require manual adjustments

Pricing: From £15/month for Simple Start plan, £24/month for Essentials (recommended for landlords)

Best for: Landlords with multiple income sources (rental + self-employment) who need one system for everything. Best if you already know QuickBooks or your accountant uses it.

4. FreeAgent

Small business accounting platform with strong MTD support. Handles both self-employment and property income in one place. Well-regarded for its clean interface and bank feed accuracy.

Key features:

• Excellent bank feed integration with smart categorisation
• Self-employment and rental property income tracking
• MTD quarterly submissions to HMRC
• Tax timeline showing upcoming tax liabilities
• Receipt capture via email and mobile app
• Accountant access

Limitations for landlords:

• Per-property reporting requires projects setup (manual)
• Designed for small businesses, not optimised for landlords

Pricing: £14/month for Solo plan, £24/month for Plus (recommended for landlords), £36/month for Premium

Best for: Landlords who are also self-employed and need one accounting system for all income sources. Excellent if tax visibility and forecasting matter to you.

5. Xero

Enterprise-grade accounting platform with MTD compliance and extensive third-party integrations. Popular with accountants and portfolio landlords with complex finances.

Key features:

• Powerful bank reconciliation with bank feeds
• Multi-currency support (for overseas landlords)
• MTD submissions to HMRC
• Extensive app marketplace (1,000+ integrations)
• Accountant access and collaboration
• Receipt capture via Hubdoc add-on

Limitations for landlords:

• Not designed for landlords - requires manual property tracking setup
• Steeper learning curve than simpler tools
• More expensive than landlord-specific options

Pricing: £13/month for Early plan, £26/month for Growing (recommended for landlords), £40/month for Established

Best for: Portfolio landlords (10+ properties), landlords with limited companies, or those needing specific integrations. Best if your accountant recommends Xero.

Comparison table: features and pricing

Quick comparison of the main tax software options for UK landlords, focusing on the features that matter most.

Additional considerations:

• Section 24 support: LandlordOS, Hammock, and FreeAgent handle this automatically. QuickBooks and Xero require manual adjustments.
• Receipt scanning: All include receipt capture, but LandlordOS and Hammock auto-categorise landlord expenses better.
• Accountant access: All platforms offer accountant collaboration features.
• Property management: Only LandlordOS combines tax with compliance tracking (Gas Safety, EICR, EPC) and tenant management.

Free vs paid tax software for landlords

Free tax software exists, but understanding the limitations helps you decide whether paying £7-£20/month is worthwhile.

What free options are available?

• LandlordOS Free tier: 1-2 properties, compliance tracking, document storage, but no accounting or tax features. Upgrade to Pro+Accounts (£15/month) for tax functionality.
• HMRC's basic Self Assessment software: Free but very basic. No bank feeds, no automatic categorisation, no per-property tracking. Manual data entry only.
• Spreadsheets + bridging software: Keep records in Excel, use bridging software to submit to HMRC. Free/cheap bridging tools exist but add an extra step each quarter.

What do you lose with free options?

Is paid software worth it?

For landlords with 1-2 simple properties, free options may suffice. Once you have 3+ properties or complex finances, bank feeds alone save 2-3 hours per quarter - easily justifying £10-£15/month. Receipt scanning, automatic categorisation, and per-property reporting add significant time savings.

Consider your hourly value. If paid software saves you 3 hours per quarter (12 hours/year) at £15/month (£180/year), you're saving time worth far more than £180 if you value your time at £20+/hour.

Which tax software for different landlord types?

The best software depends on your portfolio size, income sources, and whether you want tax-only or integrated property management.

For landlords with 1-2 properties

Best choice: LandlordOS Free tier or Pro+Accounts

• Free tier covers compliance and document storage
• Upgrade to Pro+Accounts (£15/month) when you need statement upload, AI import, and tax features
• Alternative: Hammock (from £7/month) if you only need accounting without property management

For landlords with 3-10 properties

Best choice: LandlordOS Pro+Accounts (£15/month)

• Unlimited properties with per-property tracking
• Statement upload & AI import saves hours of manual entry
• Compliance tracking keeps certificates up to date
• Alternative: Hammock if you already use separate property management software

For portfolio landlords (10+ properties)

Best choice: LandlordOS Pro+Accounts or Xero

• LandlordOS Pro+Accounts (£15/month) handles 10+ properties easily with per-property P&L
• Xero (£26-£40/month) if you need advanced features, multi-currency, or specific integrations
• Consider adding a dedicated accountant for quarterly reviews regardless of software

For landlords who are also self-employed

Best choice: FreeAgent (£24/month Plus plan)

• Handles both self-employment and rental income in one place
• Tax timeline shows combined tax liabilities
• Strong bank feed and expense tracking across income types
• Alternative: QuickBooks if your accountant recommends it

For landlords with limited companies

Best choice: Xero (£26/month) or QuickBooks (£24/month)

• Handle company accounts, VAT, corporation tax
• Integrate with payroll if you pay yourself a salary
• Accountant likely already uses one of these platforms
• LandlordOS focuses on personal landlords, not limited companies

For landlords with overseas properties

Best choice: Xero (£26/month)

• Multi-currency support for overseas rental income
• Track exchange rate gains/losses
• Most landlord-specific tools focus on UK properties only

Integration with property management features

Some platforms combine tax with property management. Others focus solely on accounting. Here's how they compare.

LandlordOS: All-in-one approach

LandlordOS is the only platform that combines property management with tax features. This means you track compliance deadlines (Gas Safety, EICR, EPC), store certificates, manage tenants, and handle accounting in one system. Benefits:

• No switching between systems for property operations vs finances
• Maintenance expenses automatically link to correct properties
• Tenant rent tracking feeds directly into income figures
• Single dashboard for compliance, tenants, and finances

Hammock, QuickBooks, FreeAgent, Xero: Accounting-only

These platforms focus purely on accounting and tax. If you need property management features (compliance tracking, tenant management), you'll need separate software. This means:

• More admin overhead switching between systems
• Manual data transfer between property management and accounting
• Potential for errors when expenses aren't linked to the right properties
• But: best-in-class accounting features and reporting

Which approach is better?

All-in-one (LandlordOS) suits most self-managing landlords who want to minimise admin time. Separate systems suit landlords with complex accounting needs who already use dedicated property management software, or those who need enterprise accounting features like multi-currency or advanced integrations.

Making Tax Digital: does it change your software choice?

MTD is mandatory from April 2026 for landlords earning over £50,000 (£30,000 from April 2028). This affects software selection.

Under MTD, you must:

• Keep digital records in approved software
• Submit quarterly updates to HMRC (four times per year)
• File an end-of-period statement after each tax year
• Submit a final declaration instead of Self Assessment

All the software in this guide is MTD-ready (LandlordOS, Hammock, QuickBooks, FreeAgent, Xero). However, if you're currently using spreadsheets or basic tools, you'll need to upgrade to one of these platforms before your MTD deadline.

Starting now - even if MTD doesn't apply to you yet - gives you time to learn the software and build digital record-keeping habits. The landlords who struggle with MTD are those who wait until the last minute to switch.

For more detail on MTD requirements, see our MTD software comparison and Making Tax Digital guide.

Can my accountant handle tax software for me?

Yes. Many accountants offer software-based services including quarterly submissions and tax preparation. However, this changes the nature of your accountant relationship.

Traditional setup: You gather records once a year, send them to your accountant, they prepare your tax return. Cost: £300-£800/year typically.

Software-based setup options:

• You use software, accountant has access: You maintain records, accountant reviews and submits quarterly. Most efficient approach. Accountant cost: £500-£1,500/year depending on involvement.
• Accountant provides software: Some firms offer software as part of their service package. You log in to their system. Convenient but ties you to that accountant.
• You handle everything: You maintain records and submit quarterly. Accountant reviews annually. Keeps costs down (£300-£500/year) but requires confidence with software.

Discuss software with your accountant now. Many recommend specific platforms to their clients. If they already use QuickBooks, Xero, or FreeAgent, choosing the same platform simplifies collaboration.