Top 5 Making Tax Digital software for landlords in the UK

We compared MTD-compliant software based on HMRC recognition for Income Tax, landlord-specific features, ease of use for property income tracking, pricing clarity, and suitability for real-world landlord workflows.

What is Making Tax Digital for Landlords?

Making Tax Digital for Income Tax (MTD for IT) is HMRC’s initiative requiring landlords to keep digital records and submit quarterly updates using compatible software. This replaces the annual Self Assessment tax return with a more frequent reporting system.

MTD for Income Tax applies to unincorporated landlords (sole traders and partnerships) — not limited companies. If you operate your property business through a limited company, you’ll continue filing company tax returns as usual.

When Does MTD Apply to Landlords?

MTD for Income Tax is being phased in based on your qualifying gross income (rental income plus any self-employment income, before expenses):

HMRC will use your most recent tax return to identify whether you need to comply. They’ll send a letter to affected taxpayers before April 2026.

Important: Only rental income and self-employment income count toward these thresholds. Employment income (PAYE) and pension income are excluded.

What Landlords Must Do Under MTD

Once MTD applies to you, you’ll need to:

Keep digital records of all rental income and allowable expenses using HMRC-recognised software. Paper records and basic spreadsheets won’t be compliant.

Submit quarterly updates within one month of each quarter end. The deadlines are 7 August, 7 November, 7 February, and 7 May each year.

File a Final Declaration by 31 January (replacing your current Self Assessment return) to confirm total taxable income and pay any tax due.

Retain records for at least five years after the tax year.

#1 Recommendation

Start with Sage Accounting

Sage is the UK’s most trusted accounting software provider, with over 40 years of compliance expertise. Their MTD solution for landlords is HMRC-recognised, easy to set up, and offers a genuinely free tier for landlords with basic needs.

Why landlords choose Sage:

• Free tier available (Sage Individual) — completely free, no billing
• 40+ years UK compliance expertise
• HMRC-recognised for MTD for Income Tax
• Automatic capture of income, expenses, and receipts
• Up-to-date tax estimates so you always know what you’ll owe
• Clean, modern interface that’s easy to learn
• Works with accountants using real-time data sharing
• Covers both property income and self-employment in one place

Pricing: Free (Sage Individual for basic needs). Sage Accounting from £7/month (currently 90% off for 6 months on Individual plan).

Get started with Sage free

Affiliate disclosure applies.

How We Evaluated MTD Software for Landlords

We tested each platform across five criteria weighted for landlord-specific needs:

HMRC MTD Recognition (30%)

Is the software on HMRC’s official compatible software list for MTD for Income Tax? Can it handle quarterly submissions and Final Declarations?

Landlord-Specific Features (25%)

Does the software understand rental income? Property-by-property tracking, rent monitoring, allowable expense categories matching SA105 requirements, and support for multiple properties.

Ease of Use (20%)

How intuitive is the platform for landlords who aren’t accountants? Bank feed quality, mobile app functionality, and time to get set up.

Value for Money (15%)

Total cost including all MTD features. Some platforms charge extra for MTD submissions — we’ve flagged where this applies.

Support & Onboarding (10%)

Quality of UK-based support, onboarding resources, and whether accountants can access your records.

Detailed Software Reviews

#1 Sage Accounting

Best for: Most landlords wanting trusted, established MTD software with a free option

Sage is a household name in UK accounting with over 40 years of experience helping businesses stay compliant. They’ve been working closely with HMRC on Making Tax Digital, and their landlord solution reflects that expertise.

The setup is straightforward: connect your accounts, and Sage automatically captures and categorises your income and expenses as they come in. No more missed transactions or manual data entry. The software gives you up-to-date tax estimates throughout the year, so your January return is essentially already complete — just check and submit.

For landlords who also have self-employment income, Sage handles both income types in one place, which simplifies quarterly reporting significantly.

Key features:

• Free tier for landlords with basic needs (Sage Individual)
• Automatic income and expense capture
• Receipt scanning and categorisation
• Real-time tax liability tracking
• Bank feed integration
• Accountant collaboration with real-time data
• Quarterly MTD submissions to HMRC
• Covers buy-to-let, holiday lets, and commercial property

Pricing: Free (Sage Individual). Sage Accounting Individual from £7/month (90% off for first 6 months currently available).

Limitations: Not landlord-specific — no property management, tenant tracking, or compliance reminders for gas certificates etc. General accounting tool adapted for landlords rather than purpose-built.

#2 Hammock

Best for: Landlords who want purpose-built property accounting with automated rent tracking

Hammock was the first landlord software officially recognised by HMRC for Making Tax Digital for Income Tax. It’s built from the ground up for property investors, not adapted from generic accounting software.

The platform automatically monitors rent payments, reconciles transactions to the correct property and tenant, and keeps your tax statement updated in real-time. For HMO landlords, the per-property pricing (rather than per-tenancy) offers excellent value.

Key features:

• First HMRC-recognised MTD software specifically for landlords
• Automated bank feed reconciliation for rental payments
• Real-time tax estimates
• Property-specific P&L statements and portfolio metrics (LTV, yields, occupancy)
• Receipt capture via mobile app
• FCA registered (No. 911254)

Pricing: From £8+VAT per month for 1-3 properties (25% discount available until April 2026). Charged per property, not per tenancy.

Limitations: Focused purely on accounting and tax — no tenant management or maintenance tracking features.

#3 Landlord Vision

Best for: Landlords who want all-in-one property management with built-in MTD compliance

Landlord Vision combines comprehensive property management tools with full MTD for Income Tax functionality. You can manage tenancies, track compliance documents, handle finances, and submit quarterly updates — all from one platform.

The software is particularly strong on compliance reminders. It alerts you when gas certificates, EICRs, and insurance documents are due for renewal. For landlords managing multiple properties, having everything in one place reduces the risk of missed deadlines.

Key features:

• Full property and tenant management
• Compliance document tracking with automated reminders
• Bank reconciliation and expense categorisation
• MTD quarterly submissions included in all plans
• Multi-user access for accountants
• Cloud document storage

Pricing: Starter £21.97/month (5 tenancies), Standard £34.97/month (10 tenancies), Premium £44.97/month (15 tenancies). MTD functionality included at no extra cost.

Limitations: Higher starting price than specialist accounting tools. Interface has more features to learn.

#4 Landlord Studio

Best for: Small portfolio landlords who want mobile-first software

Landlord Studio takes a mobile-first approach that works well for landlords who manage on the go. The app handles receipt scanning, expense logging, and rent tracking from your phone, with everything syncing to the cloud.

The free plan covers up to 3 properties with core features, though MTD submissions cost £5 each. For landlords just starting out or with small portfolios, this can be more cost-effective than monthly subscriptions.

Key features:

• Mobile-first design with full iOS/Android apps
• Bank feed integration
• GPS mileage tracking
• Receipt scanning and document storage
• Xero integration for accountants
• MTD quarterly submissions (£5 each on free plan)

Pricing: Free for 1-3 units (£5 per MTD submission). PRO plans from approximately £12/month for larger portfolios with unlimited MTD submissions.

Limitations: Some advanced features only available on paid plans. Mobile reporting more basic than desktop.

#5 FreeAgent

Best for: Landlords who bank with NatWest, RBS, or Ulster Bank (free access)

FreeAgent is full-featured accounting software that’s free if you have a qualifying business account with NatWest, Royal Bank of Scotland, or Ulster Bank. For landlords already with these banks, it’s an excellent option for MTD compliance at no additional cost.

The software includes a dedicated MTD for Income Tax area that brings quarterly submissions, tax estimates, and deadline tracking into one place. It’s more of a general accounting tool than landlord-specific software, so it lacks property management features, but the accounting functionality is solid.

Key features:

• Free with qualifying bank accounts
• Dedicated MTD for Income Tax submission area
• Bank feed integration and reconciliation
• Tax Timeline showing what you owe and when
• Accountant access and collaboration tools
• Self Assessment filing capabilities

Pricing: Free with NatWest/RBS/Ulster Bank business accounts. Otherwise from £14.50/month.

Limitations: Not designed specifically for landlords — no property-specific tracking or tenant management. Requires separate record-keeping if you want property-by-property analysis.

General Accounting Software vs Landlord-Specific Tools

You can comply with MTD using either general accounting software (like Sage, Xero, or QuickBooks) or landlord-specific tools (like Hammock or Landlord Vision). Here’s how to decide:

Choose general accounting software (Sage, FreeAgent) if:

• You have mixed income from property and self-employment
• You want established software with proven MTD track record
• You’re comfortable categorising expenses manually by property
• You want a free or low-cost option
• You already work with an accountant who uses these platforms

Choose landlord-specific software (Hammock, Landlord Vision) if:

• You want automatic property-by-property tracking
• You need rent monitoring with late payment alerts
• You want compliance reminders for gas certificates, EICRs etc
• You value portfolio metrics like LTV, yields, and occupancy rates
• You manage HMOs or multiple tenancies

For most landlords with straightforward portfolios, Sage offers the best combination of trust, features, and value — especially with the free tier available. If you need deeper property management features, Hammock or Landlord Vision are worth the investment.

Exemptions: Who Doesn’t Need MTD?

MTD for Income Tax does not apply to:

• Limited companies — you’ll continue filing company tax returns as usual
• Income from REITs — shares in Real Estate Investment Trusts are exempt
• Landlords below the thresholds — though you can voluntarily sign up to get comfortable with the system early
• Jointly owned properties — you can choose to submit expenses annually, though rental income still goes in quarterly updates

FAQs

Do landlords need MTD software?

Yes, if your qualifying income exceeds the thresholds (£50k from April 2026, £30k from April 2027, £20k from April 2028). You’ll need HMRC-recognised software to keep digital records and submit quarterly updates.

Can I use spreadsheets for MTD?

Technically, you can maintain records in spreadsheets if you use “bridging software” to submit to HMRC. However, this approach is more error-prone and time-consuming. Most landlords find dedicated software simpler.

What’s the best free MTD software for landlords?

Sage Individual is completely free with no billing. Landlord Studio offers a free plan for 1-3 properties (with £5 per MTD submission). FreeAgent is completely free if you bank with NatWest, RBS, or Ulster Bank.

Can my accountant handle MTD for me?

Yes, you can authorise an accountant to submit MTD updates on your behalf. However, you’ll still need to maintain digital records — your accountant can’t do that for you. Most MTD software allows accountant access so they can review and submit.

What happens if I miss an MTD deadline?

HMRC may issue penalties for late submissions. If you think you’ll be late, contact HMRC as soon as possible. Getting set up with MTD software now — before the deadlines — reduces the risk of last-minute issues.

Do I need separate software if I’m already using MTD for VAT?

Yes, MTD for VAT and MTD for Income Tax are separate regimes. You’ll need to sign up for MTD for Income Tax separately, though some software (like Sage) handles both.

Does MTD apply to buy-to-let, holiday lets, and commercial property?

Yes. Buy-to-let landlords, Furnished Holiday Lettings (FHLs), non-UK property, and commercial property all fall within the scope of MTD for Income Tax if your income exceeds the thresholds.

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