Imagine you own two rental properties. Every month, rent comes in, bills go out, receipts pile up and you tell yourself you will sort everything before the Self Assessment deadline. Then January arrives, and you are left trying to work out which expenses belong to which property. This is exactly the sort of admin that best MTD software for landlords can help make easier.
MTD software for landlords lets you keep digital records of rental income and expenses, send the required quarterly updates to HMRC and complete your final tax declaration through the MTD system. The right option depends on the size of your property portfolio, how much accounting help you need and whether you want landlord-specific features or a general accounting package.
MTD for Income Tax has now started for landlords with qualifying income above £50,000. The threshold is due to fall to above £30,000 from 6 April 2027 and above £20,000 from 6 April 2028. If you are affected, choosing suitable software early can make the change much easier to manage.
MTD for Income Tax only applies to individual landlords who file a Self Assessment tax return. If you hold property through a limited company, you’re not affected by any of this; you carry on filing your annual CT600 Corporation Tax return as normal, with no quarterly updates or digital record-keeping requirement. HMRC confirmed in its July 2025 Transformation Roadmap that it will not introduce a Making Tax Digital regime for Corporation Tax at all, so there’s no future deadline to plan around on that front either.
In this guide, we compare seven popular options, explain what each one is suited to and look at what you should check before choosing your software.
Quick-answer list
There is no single option that suits every landlord. Some landlords want simple accounting, while others need property-by-property tracking, joint ownership features or help with quarterly MTD submissions.
Here are seven options worth looking at:
- Xero: A good choice for landlords who want a wider accounting system with MTD support.
- QuickBooks: Useful for landlords who want familiar bookkeeping tools alongside MTD features.
- FreshBooks: Suited to people who want simple income and expense tracking, although you should check its current MTD for Income Tax features before choosing it.
- Sage Business Cloud Accounting: A strong option for landlords looking for an established accounting provider, with Sage also offering a free MTD solution for straightforward landlord needs.
- Hammock: Built specifically for landlords, with property-focused bookkeeping and MTD filing features.
- Landlord Studio: Designed around rental property records and MTD submissions, making it useful for landlords who want property-specific tools.
- Landlord Vision: A property management platform with MTD-focused features, useful for landlords managing more detailed portfolios.
The important thing is not simply finding software that says “MTD”. Check that the version you choose supports MTD for Income Tax, not just MTD for VAT.
What MTD Requires Landlords to Do
MTD changes the way affected landlords keep records and report property income. Instead of keeping everything until the end of the tax year, you need to maintain digital records and send regular updates using compatible software.
Keep digital records
You need to keep digital records of your property income and expenses if you are within MTD for Income Tax. Your records should be kept in compatible software rather than relying on paper records alone.
Send quarterly updates
Affected landlords need to send a summary of their property income and expenses to HMRC every quarter. These updates are not the same as your final tax return and do not mean you pay tax every three months.
The MTD quarterly deadlines are 7 August, 7 November, 7 February and 7 May, followed by a final declaration by the following 31 January. Miss a submission and HMRC applies its points-based penalty system: points build up with each missed deadline, and reaching the threshold triggers a fixed financial penalty, with further penalties accruing the longer a submission stays overdue.
Complete the final declaration
At the end of the tax year, you still need to finalise your tax position. The final declaration replaces the traditional Self Assessment process for income covered by MTD for Income Tax.
Use compatible software
You cannot simply choose any bookkeeping app and assume it meets MTD requirements. HMRC says the software needs to create digital records, send quarterly updates and submit the final tax return.
For landlords, this means your choice of software matters. The best MTD software for landlords should make these tasks easier rather than giving you another system to manage.
What to Look for Before You Choose the MTD Software
The cheapest software is not always the easiest option. Before choosing the best MTD software for landlords, think about how you actually manage your rental income.
1. MTD for Income Tax support
First, check that the software supports MTD for Income Tax. MTD for VAT and MTD for Income Tax are different requirements, so do not assume VAT compatibility means you are covered.
2. Property-specific records
If you own more than one property, property-by-property tracking can save a lot of manual work. Specialist landlord software can make it easier to match rent, repairs, insurance and other costs to the right property.
3. Bank feeds
A bank connection can reduce the amount of information you have to enter manually. It can also help you keep your records up to date throughout the year.
4. Quarterly filing
Check whether the software can actually send your MTD updates to HMRC. Some products may help you prepare records but require another tool or process for the final submission.
5. Cost and support
Look beyond the monthly subscription. Check what is included, whether MTD submissions cost extra and what support is available if you get stuck.
The best MTD software for landlords is the one that fits your situation, not simply the one with the longest feature list.
7 Best MTD Software Options for Landlords in 2026
MTD is now a real requirement for landlords within the first income threshold, so software has moved from something useful to an important part of tax record keeping. Here are seven options to consider, with current pricing and features checked in September 2026.
Software pricing changes frequently. The figures below reflect our September 2026 check; confirm current rates on each provider’s site before publishing this piece and again at your next content refresh.
Xero
Xero is a general cloud accounting platform with MTD for Income Tax support and tools for recording income and expenses. It can suit landlords who also have self-employed income or want a wider accounting system rather than a property-only platform.
Best for: Landlords who want general accounting features alongside property income records.
Standout feature: MTD support within a wider accounting system with bank feeds and automation.
Main limitation: Not designed solely for landlords, so some property-specific tasks may need more manual organisation than specialist landlord software.
Key features:
- Bank feeds and transaction categorisation
- Supports both property and sole trader income in one subscription
- Mobile app (iOS and Android)
- HMRC-recognised for MTD for Income Tax
QuickBooks
QuickBooks provides MTD for Income Tax functionality for landlords and sole traders, including digital records and quarterly reporting. It can work well if you want bookkeeping features that can also be used for other sources of self-employed income.
Best for: Landlords who want familiar accounting and bookkeeping tools.
Standout feature: MTD for Income Tax support alongside wider accounting features with strong mobile app.
Main limitation: Landlords with complex property portfolios may find a specialist property platform more focused on their needs.
Key features:
- Bank feeds and receipt capture
- Mobile app (iOS and Android)
- HMRC-recognised for MTD for Income Tax
- Supports UK property income
FreshBooks
FreshBooks is known for straightforward invoicing, expenses and financial records, and its UK platform supports MTD features. However, much of its clearly stated UK MTD offering focuses on VAT, so landlords should check the current MTD for Income Tax functionality for their specific needs before signing up.
Best for: Users who want simple income and expense tracking.
Standout feature: Easy expense tracking and tax-time reports.
Main limitation: Not as landlord-focused as platforms built specifically around rental property accounting; MTD for Income Tax support should be verified before use.
Key features:
- Invoice and expense tracking
- Tax reports at year-end
- Important: Verify MTD for Income Tax (not just VAT) support before subscribing
Sage Business Cloud Accounting
Sage has a long-established presence in UK accounting and now offers MTD options specifically for landlords. Sage promotes a low-cost MTD software option for landlords with straightforward requirements, including digital records and HMRC submissions.
Best for: Landlords who want an established accounting provider and a simple MTD setup.
Standout feature: Affordable MTD landlord option with property-related features.
Main limitation: The lowest-cost tier may have limitations for landlords with multiple properties or complex portfolios.
Key features:
- MTD for Income Tax recognised
- Bank feeds available on paid plans
- Supports UK property income
- Mobile app (iOS and Android)
Note: Sage’s free Individual tier is primarily for simple sole traders and may not fully support property income in all cases.
Hammock
Hammock is designed specifically for landlords rather than general accounting users. It tracks rental income and expenses, supports property and tenancy records, and offers quarterly MTD filing and a final declaration.
Best for: Landlords who want software built around property income.
Standout feature: Property-focused bookkeeping with MTD quarterly filing on all plans.
Main limitation: More specialised, so someone looking for wider accounting features may prefer a general accounting platform.
Key features:
- Bank feeds and receipt capture
- Jointly owned property support
- HMRC-recognised for MTD for Income Tax
- CSV/spreadsheet import support
- Mobile app (iOS and Android)
Landlord Studio
Landlord Studio focuses on rental property management and financial records. Its current MTD tools allow landlords to connect with HMRC and submit quarterly updates after setting up the required authorisation.
Best for: Landlords who want property-focused records and MTD submissions.
Standout feature: Rental income and expense tracking combined with MTD functionality and strong mobile expense capture.
Main limitation: Specialist focus may not be enough for someone who also needs broader accounting features; per-unit pricing can be expensive for HMOs.
Key features:
- Mobile expense capture (photograph receipts at merchants)
- Rent collection and reminders
- Landlord-focused reporting
- HMRC-recognised for MTD for Income Tax
- Bank feeds (5 on Pro, 20 on Pro Plus)
Landlord Vision
Landlord Vision is designed around property management, with features for rental income, expenses, property records and MTD preparation. Its current MTD offering includes digital record keeping and direct HMRC submission features.
Best for: Landlords managing larger or more detailed property portfolios.
Standout feature: Property-level accounting combined with MTD-focused tools and full property management suite.
Main limitation: May offer more property management features than a landlord with one straightforward rental property actually needs; pricing is higher than simpler options.
Key features:
- Full property management suite (tenancy, arrears, compliance tracking)
- MTD for Income Tax recognised
- Mobile app (iOS and Android)
- Supports UK and foreign property income
- Flat-rate plans (not per-unit pricing)
Note: Landlord Vision is positioned more as a property management platform than a full tax-return solution; check its current HMRC recognition status directly before relying on it for filing.
There is no universal winner here. A landlord with one property may prefer a simple free option, while someone with several properties may benefit from specialist property software. Before paying for any package, use HMRC’s software finder to check the latest compatibility information.
Comparison Table
The table below gives you a quick way to compare the seven options. Features and software capabilities can change, so check the provider and HMRC before making a final choice.
| Software | Best for | Standout MTD or landlord feature | Main limitation | Starting price (Sept 2026) |
| Xero | Landlords wanting general accounting | MTD support with wider accounting tools | Less landlord-specific | £7/month + VAT (£100.80/year incl. VAT) |
| QuickBooks | Landlords wanting bookkeeping and accounting | MTD for Income Tax support | Not built only for property | £10/month + VAT (£144/year incl. VAT) |
| FreshBooks | Simple income and expense tracking | Expense tracking and tax-time reports | Check current MTD for Income Tax scope | ~£10–15/month (verify MTD ITSA) |
| Sage | Simple landlord MTD needs | Affordable MTD landlord option | Less property-focused than specialist tools | £7/month + VAT (£100.80/year incl. VAT) |
| Hammock | Property-focused landlords | Quarterly MTD filing and property bookkeeping | More specialised | £8/month + VAT (£115.20/year incl. VAT for 1–3 properties) |
| Landlord Studio | Rental property record keeping | Property records and quarterly MTD submissions | Per-unit pricing can be expensive for HMOs | Free (3 units) + £5/submission, or £12/month Pro |
| Landlord Vision | Larger or detailed property portfolios | Property-level records and MTD tools | Higher price; may be more than needed | £21.97/month (≈£263.64/year) |
The best MTD software for landlords should match your number of properties, accounting knowledge and level of support. Do not choose based on price alone.
Software vs. Letting an Accountant Handle It: What Actually Costs Less
Software can reduce the amount of work involved, but it does not remove the need to understand your tax position. A landlord may spend less time entering figures but still need to decide whether an expense is allowable, how joint property income should be treated or whether a particular tax rule applies.
| Option | Best when | What you still need to do |
| MTD software alone | Your property records are simple and you are comfortable with tax admin | Keep records, check figures and meet deadlines |
| Accountant with software | You want someone to review the figures and deal with tax work | Provide accurate records and answer questions |
| Accountant-led service | Your property affairs are more complicated | Share documents and approve the work |
Software subscription costs vary widely depending on the provider and plan. Some options offer free versions or trials, while paid packages can add features such as bank feeds, property tracking and filing support.
In practice, the useful combination is often good software plus a good accountant. The software keeps the records organised, while the accountant can review the figures, deal with tax filing and help with decisions that software cannot make for you.
MyIVA provides MTD tax return filing, bookkeeping and tax planning support, so landlords can use digital records without having to handle every part of the tax process alone.
FAQs: Frequently Asked Questions
Is there a genuinely free MTD-compliant option for landlords?
Yes. Sage currently offers a free MTD software option for landlords with straightforward requirements. However, always check what is included in the free version and confirm that it covers the MTD for Income Tax features you need.
What’s the best MTD software for a landlord with just one property?
For one straightforward property, a simple MTD option may be enough. Sage’s free landlord option or a specialist platform such as Hammock may be worth considering, depending on the features you need.
Can you use a spreadsheet instead of dedicated software?
A spreadsheet by itself is not enough where you are required to use MTD for Income Tax. HMRC requires compatible software for digital records and quarterly updates, although spreadsheets can sometimes form part of a wider setup when connected through suitable software.
What happens if your chosen software isn’t HMRC-recognised in time?
You need to make sure your software is compatible before your MTD obligations begin. HMRC provides a software finder so landlords can check which products meet the requirements.
Do you need MTD software if you already use an accountant?
If you are within MTD for Income Tax, your accountant will still need to use compatible software to manage your digital records and submit the required updates. You may not need to manage the software yourself if your accountant handles the MTD process for you.
Do landlords need an accountant, or can they file it themselves?
You can manage your own tax affairs if you understand the rules and keep proper records. An accountant can be useful if you have several properties, joint ownership, other income or simply want someone else to handle the bookkeeping and tax filing.
Does MTD apply to landlords who operate through a limited company?
No. MTD for Income Tax only applies to individual landlords who file a Self Assessment tax return; it doesn’t extend to companies. If you hold property through a limited company, you carry on filing your annual CT600 Corporation Tax return exactly as before, with no quarterly updates or digital record-keeping requirement. HMRC confirmed in its July 2025 Transformation Roadmap that it won’t be introducing a Making Tax Digital regime for Corporation Tax at all, so there’s no future deadline for company landlords to plan around on this front.
Conclusion
The best MTD software for landlords depends on what you need from it. General accounting platforms such as Xero, QuickBooks and Sage can suit landlords who want broader accounting tools, while Hammock, Landlord Studio and Landlord Vision focus more closely on property records and landlord needs. FreshBooks can also be useful for financial record keeping, but its current UK MTD for Income Tax features should be checked before choosing it.
If you have a simple property setup, you may be able to manage MTD yourself with suitable software. But having software does not mean every tax decision is automatically correct. You still need to keep accurate records, categorise expenses correctly and make sure your quarterly figures are complete.
MyIVA can help landlords with MTD tax filing, bookkeeping and wider tax planning. You can keep your financial records digitally while our accounting team helps with the filing side and keeps your tax work organised.
Not sure which MTD option is right for you? Speak to MyIVA today and get practical help with your landlord tax records, MTD filing and wider tax needs.
