Free Making Tax Digital Software for Landlords: Your 2026 Options

Do you have to pay for Making Tax Digital software?

No — free tier MTD software exists for UK landlords. The important requirement is that any software you use must be HMRC-recognised, which means it appears on HMRC's approved software list and can submit quarterly updates directly to HMRC's API.

MTD software falls into two broad categories relevant to landlords:

• Landlord-specific software with MTD built in: Designed around property management — tracking tenancies, maintenance, compliance deadlines, and finances — with MTD quarterly submissions as a core feature. Better for landlords because the expense categories, tenant income tracking, and property-by-property reporting are purpose-built.
• General accounting software with MTD support: Business accounting platforms that have added MTD compatibility. Technically compliant, but typically without the property management features landlords need. You may find yourself maintaining a separate system for tenancy management alongside the accounting software.

For most landlords, especially those managing properties themselves, landlord-specific software with integrated MTD is the better choice. General accounting software is excellent for businesses with employees, multiple VAT-registered transactions, and complex bookkeeping — but for a landlord with three residential lets and straightforward income and expense tracking, it is overcomplicated and often more expensive.

The one essential check: HMRC recognition

Before using any software for MTD submissions, verify it is on HMRC's recognised software list. HMRC publishes this list at gov.uk and updates it as new software gains approval. Using unrecognised software — even software that claims to be "MTD ready" — means your submissions will not reach HMRC through the official API. That is a compliance failure, even if you believe you have submitted correctly.

All software listed in this guide is HMRC-recognised at the time of writing. Always verify current recognition status directly with HMRC's list.

What to look for in free Making Tax Digital software for landlords

The key criteria are HMRC recognition, property management capability, correct expense category mapping, free inclusion of MTD quarterly submission (not just record-keeping), and transparent upgrade terms.

HMRC recognition (non-negotiable)

Covered above. Any software you use for MTD submissions must appear on HMRC's recognised software list. This is not a nice-to-have — it is the fundamental compliance requirement.

Property-specific features

Generic accounting software treats all income as business income. For landlords, you need:

• Property-by-property income tracking (HMRC requires income split by property for EOPS)
• Tenancy records (tenant name, rent amount, tenancy dates, arrears tracking)
• Property income expense categories mapped to HMRC's property income classifications
• Residential Finance Cost handling (the 20% basic rate tax credit under Section 24)
• Replacement Domestic Items Relief (RDRI) as a distinct expense category

Generic accounting software frequently lacks these. The result is extra manual work to format your records correctly before submission.

Expense categorisation mapped to HMRC property income categories

HMRC's property income categories for MTD are specific. Your software should automatically categorise or allow you to map expenses to categories including: rent, rates and insurance; repairs and maintenance; finance costs; professional fees; costs of services provided; and other allowable expenses. Incorrect categorisation does not prevent submission but can create complications at the Final Declaration stage when your accountant or HMRC reviews the figures.

MTD quarterly submission included in the free tier

Some platforms offer free record-keeping but charge for the MTD submission feature. This is a meaningful distinction: a free record-keeping tool without free MTD submission is not genuinely free MTD software. Before signing up, confirm that the free tier includes the ability to submit quarterly updates to HMRC directly, not just to keep digital records.

Final Declaration support

The End of Period Statement (EOPS) and Final Declaration are as important as the quarterly updates. Some lower-cost platforms include EOPS preparation but require additional work or professional help for the Final Declaration. Understand what the free tier covers before your first MTD year-end arrives.

Free tier limitations: understand them before committing

Most free tiers have limitations — property count caps, feature restrictions, or submission volume limits. Understand these before you start using the platform. Being forced to upgrade mid-tax-year because your portfolio size exceeds the free tier limit is disruptive and potentially creates continuity issues with your MTD records.

LandlordOS: free MTD software built for UK landlords

LandlordOS is a purpose-built UK landlord platform with a free tier covering up to two properties. It includes MTD quarterly update submissions, full property and tenant management, compliance deadline tracking, and expense recording with automatic categorisation.

LandlordOS was built specifically for UK residential landlords who want to manage their properties and their tax obligations in one place — without needing a separate property management system, a separate accounting platform, and a separate MTD submission tool.

What the free tier includes

• Up to two properties and their associated tenancies
• Tenant and tenancy management (contact details, documents, rent tracking)
• Compliance deadline tracking (gas safety, EICR, EPC, deposit protection)
• Income and expense recording with property income categories
• MTD quarterly update submissions to HMRC
• AI-powered document processing (statement upload and categorisation)
• Access to Ace, the LandlordOS AI assistant

Why LandlordOS is different from general accounting software

When you add a transaction in LandlordOS, you associate it with a specific property and a specific tenancy. This is how HMRC requires property income to be structured for MTD — at the property level. General accounting software typically treats all rental income as a single income stream, requiring manual splitting for MTD purposes.

LandlordOS also handles the things that matter to landlords but are invisible to accounting software: when is the gas safety certificate due, which tenant has outstanding rent arrears, which properties have upcoming tenancy renewals, and whether your deposit is correctly protected. These are not accounting questions — they are property management questions. Having them in the same platform as your MTD submissions means a single source of truth for your property portfolio.

MTD support in LandlordOS

LandlordOS connects directly to HMRC's MTD API. When your quarterly update is due, the platform assembles the required summary figures from your records and submits them to HMRC. You review and confirm the figures before submission; the software handles the technical formatting and API communication. After submission, the platform retains the submission record and HMRC's acknowledgement for your records.

The EOPS and Final Declaration process is also supported. At year-end, LandlordOS guides you through the additional information required — adjustments, reliefs, and any corrections to the quarterly figures — before the Final Declaration is submitted by 31 January.

Pricing and upgrade path

The free tier covers up to two properties indefinitely — it is not a time-limited trial. Landlords with three or more properties can upgrade to a paid tier that adds unlimited property tracking, additional AI features, and priority support. Pricing is competitive with other landlord-specific platforms. Details at landlord-os.com/pricing.

Sign up free — no card required

Hammock: free tier option for landlord accounting

Hammock is one of the original landlord-specific accounting platforms in the UK. A free plan is available with limitations. Hammock is HMRC-recognised for MTD and focuses primarily on the financial accounting side of property management.

Hammock was founded specifically to serve UK landlords and has been in the market for several years. Its core proposition is connecting your rental bank accounts to HMRC-compliant accounting records, with automatic transaction categorisation and MTD submission built in.

Free plan details

Hammock's free plan provides access to core accounting and MTD features for a limited portfolio size. The exact limitations of the free tier may change; check Hammock's website for current terms. As of early 2026, the free plan allows limited property connections and basic MTD submission functionality.

Strengths

• Strong bank feed integration — connects directly to most UK banks to import transactions automatically
• Purpose-built for landlords, with property income categories built in
• Clean, straightforward user interface
• HMRC-recognised for MTD for Income Tax

Limitations

• Primarily an accounting tool — less comprehensive property management than LandlordOS
• No compliance deadline tracking or tenancy management in the free tier
• Free tier is more limited in scope than LandlordOS's free offering

Best suited for

Landlords who already have a separate property management system and specifically need an accounting and MTD submission tool. If your main gap is the financial recording and tax reporting side — and you are not looking for an all-in-one platform — Hammock's free tier is worth evaluating.

General accounting software with free plans

Several general accounting platforms have MTD support and offer free tiers, though these are designed for small businesses broadly rather than landlords specifically. The key limitation is that they lack property management features and may require additional manual work to structure your records in the way MTD requires for property income.

FreeAgent: free with qualifying bank accounts

FreeAgent is available free to customers of NatWest, Royal Bank of Scotland, Ulster Bank, and Mettle (NatWest's business banking app). If you have a business bank account with one of these banks, FreeAgent is included at no additional cost.

FreeAgent is a full-featured accounting platform with strong MTD support. It handles quarterly updates and end-of-year filing, and is HMRC-recognised.

The significant limitation for landlords is that FreeAgent is designed for sole traders and small businesses, not specifically for property income. You can use it for rental income, but you will need to manually configure categories and track properties separately. It lacks the tenancy management, compliance tracking, and property-level income reporting that landlord-specific software provides natively.

Best for: Landlords who already bank with NatWest, RBS, Ulster Bank, or Mettle and want free accounting software without switching banks. Less suitable as a standalone landlord solution.

Clear Books: free plan available

Clear Books offers a free plan for businesses and individuals, including landlords. The platform is HMRC-recognised for MTD and provides standard accounting features including income and expense tracking, invoicing, and MTD submission.

Clear Books has a clean interface and has been around long enough to have established credibility in the UK accounting market. Like FreeAgent, its design is business-focused rather than landlord-specific. Property income can be tracked, but you are working within a generic business accounting framework rather than a property-centric one.

Best for: Landlords who are also self-employed in another trade and want a single accounting platform covering both income streams. For landlords with rental income only, a landlord-specific platform will typically serve better.

A note on QuickBooks, Xero, and Sage

These three platforms are the dominant general accounting software options in the UK. All three support MTD. None offers a genuinely free plan for ongoing use — they provide time-limited trials, and their ongoing costs start from around £12-25 per month.

More importantly, none of them was built for landlords. They are designed for businesses with employees, payroll, VAT returns, invoicing workflows, and complex multi-account bookkeeping. For a landlord with a small portfolio and straightforward income and expense tracking, they are significantly overspecified and often confusing to configure for property income.

If you already use Xero or QuickBooks for a separate business and want to add your rental income to the same platform, that can work. For landlords whose sole or primary activity is letting property, a landlord-specific platform is a better starting point.

Spreadsheet plus free bridging software

Landlords who are comfortable with spreadsheets can continue using Excel or Google Sheets for their records and use bridging software to submit quarterly updates to HMRC. Some bridging software is free or available at very low cost.

Bridging software sits between your spreadsheet and HMRC's MTD API. You maintain your income and expense records in a spreadsheet, format them in the way the bridging software expects, and the bridging software handles the submission to HMRC. You do not need to change your underlying record-keeping method — just the submission mechanism.

How bridging works in practice

A typical bridging software workflow:

1. Maintain income and expense records in your spreadsheet throughout the quarter, with columns mapped to HMRC's property income categories
2. At the end of each quarter, open your bridging software and import or link to your spreadsheet
3. The bridging software reads the summary totals from your spreadsheet
4. Review the figures, confirm they are correct, and submit to HMRC via the bridging software's API connection
5. Receive HMRC's acknowledgement (stored within the bridging software)

Free and low-cost bridging options

Several bridging software providers offer free or very low-cost tiers for individual landlords. The cost of bridging software specifically for property income MTD is typically far lower than a full accounting platform subscription — often free or under £50 per year.

When evaluating bridging software:

• Confirm it is HMRC-recognised for MTD for Income Tax (not just MTD for VAT — these are different)
• Check whether the free tier includes all four quarterly submissions and the EOPS
• Verify it handles property income categories specifically, not just general business income
• Check the spreadsheet format requirements — some bridging tools require very specific column layouts

Limitations of the bridging approach

Bridging software solves the submission problem but does not provide property management features, automated transaction import, or compliance tracking. If you are using a spreadsheet and bridging software, you are likely also maintaining separate records for tenancy information, maintenance history, and compliance certificates.

For landlords with one or two properties who are deeply comfortable with spreadsheets and have no interest in property management software, bridging is a practical and low-cost option. For those looking to consolidate their property administration, a purpose-built platform with built-in MTD is more efficient.

HMRC's own tools and the recognised software list

HMRC does not provide free MTD software for landlords. It does publish and maintain a list of recognised software at gov.uk. Verifying that any software you use appears on this list is the single most important check before committing to a platform.

HMRC provides free digital tools for PAYE employers (PAYE tools) and a free online portal for Self Assessment. For MTD for Income Tax, HMRC has taken the approach of requiring third-party software rather than building its own submission tool. This is by design — HMRC's position is that the market can provide MTD software more effectively than a single government tool.

How to use HMRC's recognised software list

The list is published at gov.uk and is searchable. Key steps:

1. Navigate to gov.uk and search for "Making Tax Digital compatible software"
2. Select the Income Tax Self Assessment section (not VAT)
3. The list shows software name, provider, and confirmation of HMRC recognition
4. Some entries note whether the software is suitable for property income specifically

The list is updated as new software gains recognition and as recognition is reviewed. Always check the current list rather than relying on marketing materials from software providers, which may be out of date or promotional in nature.

What HMRC recognition means (and does not mean)

HMRC recognition means the software has successfully connected to HMRC's MTD API and can submit quarterly updates in the correct format. It does not mean HMRC endorses or recommends the software, nor does it mean the software has been audited for quality, security, or accuracy of tax calculations.

Recognition is a technical compliance standard, not a quality assurance mark. A poorly designed or inaccurate platform can technically be HMRC-recognised. Choosing a recognised platform with an established user base and positive reviews is a stronger indicator of quality than recognition alone.

Cost comparison: free and low-cost MTD options for landlords

The comparison below covers the main free and low-cost Making Tax Digital options for UK landlords as of February 2026.

For most individual landlords with one or two properties: LandlordOS free tier provides the broadest combination of property management and MTD functionality at no cost. For larger portfolios, the paid tier of a landlord-specific platform is typically better value than a general accounting platform that lacks property features.

What questions to ask before choosing free MTD software

Before committing to any free MTD software, ask: Is it on HMRC's recognised list? Does the free tier include submission (not just record-keeping)? Does it handle UK property income categories? What happens if I need to upgrade?

Is it on HMRC's recognised software list?

This is the essential question. Check gov.uk's MTD compatible software list directly. Do not rely on the software provider's marketing claims alone.

Does the free tier include MTD quarterly submission?

Some platforms offer free record-keeping but require a paid upgrade to submit to HMRC. Confirm explicitly that submission is included in the free tier, not just data entry.

Does it handle UK property income categories specifically?

HMRC requires property income to be reported under specific categories. Ask whether the software uses these categories natively or requires you to configure them manually.

Can it track multiple properties?

If you have more than one property, the software must be able to track income and expenses at the individual property level. MTD for property income requires this breakdown. Confirm the free tier covers your number of properties.

Does the free tier include the EOPS and Final Declaration?

Some free tiers cover quarterly updates but not the year-end End of Period Statement or Final Declaration. Understand the full year-end process and whether it is included before you begin.

What happens when (if) I need to upgrade?

If your portfolio grows beyond the free tier limit, what are the upgrade terms? Can you export your data if you choose to switch to a different platform? Is there continuity of your MTD submission history?

How does it handle Section 24 and RDRI?

Section 24 (the restriction of mortgage interest deduction to a 20% basic rate tax credit) and the Replacement Domestic Items Relief are specific to UK residential landlords. Confirm the software handles these correctly rather than treating mortgage interest as a standard business expense.

Is it actively maintained and supported?

MTD legislation and HMRC's API requirements continue to evolve. Software that was recognised at launch may need updates as rules change. Check when the software was last updated and whether the provider actively communicates changes.

Making the right choice for your portfolio size

The right software depends on your portfolio size, how you currently manage records, and what additional features beyond MTD compliance you value. Smaller portfolios can generally start with a free tier; larger portfolios benefit from paid landlord-specific software.

One or two properties

LandlordOS's free tier covers you completely. You get property and tenancy management, compliance tracking, expense recording, and MTD submission at no cost. This is the recommended starting point for landlords entering the MTD regime with a small portfolio.

Alternatively, if you already use a spreadsheet and are confident in digital record-keeping, a free bridging software solution adds only the submission mechanism to your existing workflow. This works but lacks the integrated property management.

Three to ten properties

At this scale, a paid tier of landlord-specific software provides material time savings through automation, bank feed integration, and the ability to track multiple properties without manual record-keeping. The monthly cost is typically recovered in time saved. LandlordOS's paid tiers, Hammock's paid plans, or Landlord Vision are all options worth comparing.

Ten or more properties

Larger portfolios typically warrant dedicated property management software with accounting integration. At this scale, the cost of software is marginal compared to the administrative burden of managing it manually, and the risk of MTD errors increases with portfolio size. LandlordOS scales to larger portfolios; for very large portfolios, Arthur Online or similar enterprise-grade platforms may be appropriate.

If you use an accountant

Ask your accountant which software they prefer to work with. Some accountants have strong preferences or existing integrations with specific platforms. Using software your accountant is familiar with reduces friction at year-end and may reduce your accountancy costs. Most accountants working with landlords are familiar with LandlordOS, Hammock, FreeAgent, and Xero.

Setting up MTD software: practical guidance

Start setting up your MTD software now, before your mandatory start date. Allow time for the HMRC authorisation process, data migration from previous records, and a practice run of the quarterly submission workflow.

Step 1: Confirm you are in scope

Check whether your gross property income (before expenses) for the 2024/25 tax year — the qualifying year for the April 2026 cohort — exceeds £50,000. Include all rental income, from all properties, gross. If you also have self-employment income, that counts toward the combined threshold. If your income exceeds £50,000 combined, you must be in MTD from 6 April 2026.

Step 2: Sign up to HMRC's MTD for Income Tax service

Before any software can connect to HMRC on your behalf, you need to be registered for MTD for Income Tax in your HMRC account. This is separate from Self Assessment registration. Sign up at gov.uk — search "Sign up for Making Tax Digital for Income Tax". You will need your Government Gateway credentials.

Step 3: Choose and authorise your software

After registering with HMRC, connect your chosen MTD software. Most platforms guide you through an authorisation flow where you log in to HMRC and grant the software permission to submit on your behalf. This authorisation is required before any submissions can be made.

Step 4: Set up your properties

Add each property to your software — address, tenancy details, and associated income/expense tracking. This sets up the property-level structure that MTD requires for property income reporting.

Step 5: Begin digital record-keeping

From your first MTD year (6 April 2026 if you are in the first cohort), all income and expense records must be kept digitally. Begin migrating to digital records now — ideally from 6 April 2025 onwards — so your first MTD year starts with clean, complete data.

Step 6: Submit your first quarterly update

Your first quarterly update covers the period 6 April to 5 July 2026, due by 5 August 2026. The soft landing means no penalty points for late submission in the first MTD year, but it is still good practice to submit on time to build the quarterly habit.

Frequently asked questions: free MTD software for landlords

Is there genuinely free Making Tax Digital software for landlords?

Yes — LandlordOS is free for landlords with up to two properties and includes MTD quarterly update submissions. Hammock also has a free tier. Both are HMRC-recognised platforms built specifically for UK landlords.

Does HMRC provide free software for Making Tax Digital?

HMRC publishes a list of recognised MTD software at gov.uk but does not provide its own free landlord MTD tool. For PAYE employers, HMRC offers free tools. For MTD for Income Tax (which covers landlords), third-party software is required.

Can I use a spreadsheet for Making Tax Digital for free?

Yes — with bridging software. You maintain records in your spreadsheet, and the bridging software connects to HMRC's API to submit the quarterly figures. Some bridging software is free; most is available for well under £50 per year. The bridging software must be HMRC-recognised.

What is the minimum I need to pay for Making Tax Digital software?

Potentially nothing. LandlordOS is free for up to two properties and includes MTD submissions. Hammock has a free tier. Bridging software can be free or very low cost. Landlords with larger portfolios typically benefit from a paid tier, but for one or two properties, free options are fully functional.

Is LandlordOS on HMRC's recognised software list?

Yes — LandlordOS is HMRC-recognised for MTD for Income Tax and supports quarterly updates and the Final Declaration process for UK residential landlords.

Will the free tier of MTD software be enough for my needs?

For most landlords with one or two properties and straightforward income and expenses, yes. LandlordOS's free tier covers property management, compliance tracking, expense recording, and MTD quarterly submissions. Landlords with larger portfolios or complex financial arrangements typically benefit from a paid tier.

What are the risks of using free Making Tax Digital software?

Two key risks: first, using software that is not HMRC-recognised (meaning submissions do not reach HMRC properly); second, using a platform where the free tier does not include submissions — only record-keeping. Always verify HMRC recognition on gov.uk and confirm that submission is included in the free tier.

How do I find HMRC's list of recognised Making Tax Digital software?

Search "Making Tax Digital compatible software" on gov.uk and navigate to the Income Tax Self Assessment section. The list is maintained by HMRC and updated as new software gains recognition.

Can I change MTD software if I am not happy with the free option?

Yes. Your HMRC submission history is retained by HMRC regardless of which software submitted it. Most platforms allow data export. You can switch software without losing your compliance history, though you will need to re-authorise the new software with HMRC.

Does free software meet all HMRC's Making Tax Digital requirements?

As long as it is HMRC-recognised, yes. HMRC recognition means the software meets the technical standards required for MTD submission. Free and paid tiers of the same recognised platform are equally compliant from HMRC's perspective.