Best MTD Software for Landlords: Compare Your Options for 2026

What is MTD software and why do landlords need it?

MTD software is HMRC-approved digital accounting software that keeps your records, categorises income and expenses, and submits quarterly updates directly to HMRC. Under Making Tax Digital for Income Tax, landlords can no longer rely on spreadsheets and an annual Self Assessment return.

From April 2026, if your rental income exceeds £50,000, you must use MTD-compatible software to:

• Keep digital records of all rental income and allowable expenses
• Submit quarterly updates to HMRC (four times per year instead of one annual return)
• File an end-of-period statement after each tax year
• Submit a final declaration replacing your Self Assessment return

This is a fundamental shift. Instead of gathering receipts once a year and filing in January, you'll report every quarter. The software handles the digital link to HMRC - submitting directly from your records to their systems without manual re-entry.

If you're unsure whether MTD applies to you, check the MTD income threshold guide to calculate your qualifying income.

MTD deadlines: when do landlords need to be ready?

The MTD rollout happens in two phases based on your total qualifying income from self-employment and property combined.

Even if you fall into the 2028 bracket, starting now gives you two years to build good digital habits. Landlords who wait until the last minute face a steep learning curve and risk MTD penalties for late submissions.

The quarterly submission deadlines follow a fixed calendar: updates are due by the 7th of the month following each quarter end (5 July, 5 October, 5 January, 5 April).

Key features to look for in MTD software

Not all MTD software is created equal. General accounting packages meet the minimum HMRC requirements, but landlord-specific software handles property nuances that generic tools miss.

Essential MTD features (must-have)

• HMRC quarterly submission: Direct digital link to submit updates without manual re-entry
• Digital record-keeping: Stores all income and expense records in HMRC-compliant format
• End-of-period statements: Generates and submits annual summaries after each tax year
• Final declaration: Replaces your annual Self Assessment tax return
• Expense categorisation: Separates allowable deductions (mortgage interest, repairs, insurance, letting agent fees)

Landlord-specific features (highly recommended)

• Property-by-property tracking: See income and expenses broken down per property, not just portfolio totals
• Bank feeds: Automatic import of transactions from your bank account - no manual entry
• Rent tracking: Monitor which tenants have paid and which are in arrears
• Receipt scanning: Photograph receipts on the go and auto-categorise expenses
• Profit and loss per property: Understand which properties make money and which don't
• Accountant access: Let your tax adviser view records directly without exporting files
• Compliance tracking: Gas Safety, EICR, EPC deadline reminders alongside your accounts

The landlords who find MTD easiest are the ones whose software handles property-specific needs. Generic accounting tools force you to create workarounds for per-property tracking and landlord-specific expense categories.

Free vs paid MTD software for landlords

Free MTD software exists, but comes with limitations. Understanding the trade-offs helps you pick the right tier for your portfolio.

If you have one or two buy-to-lets and simple finances, a free tier may be all you need. Once you have three or more properties, bank feeds and automatic categorisation save hours every quarter - features typically behind a paywall.

MTD bridging software: keep your spreadsheets

MTD bridging software is a middle-ground option for landlords who already have well-organised spreadsheets and don't want to switch to full accounting software. The bridge connects your spreadsheet data to HMRC's systems for submission.

How bridging software works:

1. You keep records in Excel or Google Sheets as normal
2. At quarter-end, open the bridging software
3. Import or link your spreadsheet data
4. The bridge formats and submits your quarterly update to HMRC
5. You receive confirmation of successful submission

Pros of bridging software:

• Keep your existing spreadsheet workflow
• Lower learning curve - familiar format
• Often cheaper than full accounting software
• Good for landlords who enjoy spreadsheet control

Cons of bridging software:

• Extra step every quarter (export, bridge, submit)
• No bank feeds or automatic categorisation
• HMRC expects most people to transition to full MTD software over time
• No real-time view of your tax position
• Manual data entry still required in your spreadsheet

Bridging is a pragmatic short-term solution, especially for landlords near retirement or those with very simple property finances. For most, full MTD software is a better long-term investment.

Comparing the top MTD software for landlords

Several software platforms are positioning themselves for the landlord MTD market. Here's how the main options compare on the features that matter most to property landlords.

LandlordOS + AccountsOS

Purpose-built for UK self-managing landlords. Combines property management (compliance tracking, tenant management, document storage) with accounting and MTD submission in a single platform. Three pricing tiers:

• Free (£0/month): 1-2 properties, basic compliance tracking, document storage
• Pro (£9/month): Unlimited properties, full compliance suite, AI document reading
• Pro+Accounts (£15/month): Everything in Pro plus full accounting, statement upload & AI import, MTD quarterly submissions, per-property P&L

Hammock

HMRC-recognised landlord accounting software. Focused specifically on rental property finances with bank feeds and automatic categorisation. Designed for landlords rather than general business use. Pricing starts from around £7/month depending on portfolio size.

Landlord Vision

Comprehensive landlord accounting platform with property management features. Includes bank reconciliation, tax reporting, and compliance tracking. Popular with portfolio landlords. Pricing from around £12/month.

FreeAgent

General accounting software with strong MTD capabilities. Handles self-employment and property income together. Excellent bank feed integration. Better suited to landlords who are also self-employed and need one system for everything. From £14-£36/month depending on plan.

Xero / QuickBooks

Market-leading general accounting platforms. Robust MTD compliance and extensive app ecosystems. However, they're not built for landlords - you'll need to configure property tracking yourself or use add-on apps. Typically £15-£40/month.

For a more detailed comparison, see our full MTD software comparison guide and landlord accounting software for MTD breakdown.

How to get MTD-ready: step-by-step

You don't need to wait until April 2026 to start. In fact, starting early gives you time to learn the software, sort your records, and submit your first few quarters without pressure. Here's how to prepare for MTD in the right order.

Step 1: Check if MTD applies to you

Calculate your total qualifying income from property and self-employment. If it exceeds £50,000, you must be ready by April 2026. Between £30,000 and £50,000, you have until April 2028. Check the MTD threshold details for exactly what counts towards the limit.

Step 2: Choose your software

Decide between full MTD software or bridging software. For most landlords, full software is the better long-term choice. Consider how many properties you have, whether you need bank feeds, and whether you want property management features alongside accounting.

Step 3: Sign up for MTD with HMRC

You need to register for MTD with HMRC before you can submit quarterly updates. This involves signing up through your Government Gateway account and authorising your chosen software to submit on your behalf.

Step 4: Connect your bank account

If your software supports bank feeds, connect your property bank account. This automatically imports transactions, saving hours of manual entry. Most landlords find this is the single biggest time-saver.

Step 5: Categorise your existing records

Import or enter your property income and expenses. Set up categories for allowable deductions: mortgage interest (at the basic rate), repairs, insurance, letting agent fees, ground rent, service charges, and professional fees.

Step 6: Submit your first quarterly update

Once your records are digital and categorised, submit your first quarterly update through the software. The system sends the data directly to HMRC. You'll receive a confirmation reference. The whole process takes minutes once your records are in order.

Step 7: Maintain quarterly discipline

Set reminders for quarterly deadlines. Keep receipts digital from day one. Reconcile bank feeds monthly rather than scrambling at quarter-end. The landlords who struggle with MTD are the ones who leave everything to the last week.

Can my accountant handle MTD for me?

Yes. Many accountants are gearing up for MTD and offer quarterly submission services. However, this changes the nature of your accountant relationship - and potentially the cost.

Under the old system, you'd send your records to your accountant once a year. Under MTD, they need access to your records four times a year. This means either:

• You use software and give your accountant access - they review and submit quarterly. This is the most efficient approach.
• Your accountant provides software - some accountancy firms offer MTD software as part of their service package.
• You handle quarterly submissions yourself - and your accountant reviews annually. This keeps costs down but requires you to be confident with the software.

Discuss MTD with your accountant now. Many are already recommending specific software to their landlord clients. If your accountant hasn't mentioned MTD yet, it may be worth asking how they plan to handle it.

MTD software for landlords who are also self-employed

If you have both rental income and self-employment income, your quarterly updates must cover all qualifying sources. This creates a specific software consideration.

You have two approaches:

• One software for everything: Use a general accounting package like FreeAgent or Xero that handles both self-employment and property income. Simpler to manage but may lack landlord-specific features.
• Separate software: Use landlord-specific software for property income and different software for self-employment. Your accountant can consolidate for quarterly submissions. More complex but better feature coverage for each income type.

The combined income from both sources determines your MTD threshold. A landlord earning £30,000 from rent and £25,000 from self-employment has a qualifying income of £55,000 - putting them in the April 2026 group.