Making Tax Digital Software for Landlords – What to Look For

As Making Tax Digital (MTD) deadlines approach, landlords across the UK are being urged to transition to digital tax reporting. But to do that, they’ll need more than just awareness—they’ll need the right Making Tax Digital software for landlords. 

If you’re a landlord, choosing the right software is one of the most important steps in preparing for MTD compliance. In this post, we’ll explore what MTD software is, why it matters, and what features to look for when choosing a platform. 

What Is Making Tax Digital Software? 

Making Tax Digital software is any HMRC-approved tool that allows you to: 

• Keep digital records of income and expenses 
• Submit quarterly updates to HMRC 
• Generate and file an End of Period Statement (EOPS) 
• Complete your Final Declaration 

HMRC requires landlords to use compatible software—meaning it must link directly to HMRC’s systems for submission and support MTD for Income Tax Self Assessment (ITSA). 

Why Landlords Need MTD Software 

From April 2026, all landlords with annual property income over £50,000 must use MTD software. This extends to those earning £30,000–£49,999 from April 2027. 

Trying to handle this transition manually or with basic spreadsheets will no longer be sufficient—unless you use a bridging tool (and even then, it’s limited and temporary). MTD software simplifies your entire tax process and ensures full compliance. 

Top Features to Look for in MTD Software for Landlords 

Not all accounting platforms are created equal—especially for landlords. Here are the key features to look for: 

1. HMRC Compatibility

This is non-negotiable. The software must be recognised by HMRC as MTD-compatible. You can check HMRC’s official list of approved tools online. 

1. Quarterly Update Submission

Your chosen platform should allow direct submission of quarterly updates to HMRC. This keeps you compliant without needing to juggle multiple systems. 

1. Property-Specific Features

Landlords benefit from tools tailored to property income. Look for software that allows you to: 

• Track rental income per property 
• Record mortgage interest and other allowable expenses 
• Manage void periods, repairs, and maintenance costs 

1. Bank Feed Integration

Software that connects directly to your bank helps automate expense tracking. It pulls in transactions and allows you to categorize them easily. 

1. Receipt Capture

Some platforms let you scan or upload receipts and attach them to transactions. This is excellent for audit-proofing your records. 

1. Multiple Property Support

If you own more than one property, your software should handle multi-property portfolios. Some tools let you view profit and loss for each unit. 

1. Tax Estimates

Good software gives you a running estimate of your tax bill based on your quarterly updates. That way, you can budget and plan ahead. 

1. End of Period Statement (EOPS) and Final Declaration

Ensure your software can generate and submit the final steps required by MTD. Some platforms offer end-of-year reconciliation tools to simplify this. 

1. Mobile Access

If you’re on the go, mobile-friendly platforms or dedicated apps can help you manage your records from anywhere. 

1. Affordability and Support

Choose a platform that fits your budget and offers good customer support—especially when you’re just getting started. 

Popular MTD Software for Landlords 

Here are some of the most landlord-friendly platforms currently available (and HMRC-recognised): 

• Xero – Cloud-based, with strong bank feeds and property support 
• QuickBooks – Easy to use, widely known, good for sole traders and landlords 
• FreeAgent – Free with certain business bank accounts, built-in MTD features 
• APARI – Built specifically for MTD for ITSA and landlords 
• TaxCalc – Powerful end-of-year tools, great for accountants and DIY landlords 
• Landlord Vision – Designed with landlords in mind; includes tenant management tools 

Free vs Paid Options 

Some tools offer free versions, especially for smaller portfolios or simpler needs. However, you may miss out on features like receipt capture or multiple property support. 

Paid versions range from £5 to £30/month depending on features, support, and complexity. 

Getting Started with MTD Software 

Here’s how to make the transition smoother: 

1. Try before you buy – Most platforms offer free trials. 
2. Connect your bank – Automate data entry from day one. 
3. Import old records – Upload existing spreadsheets or summaries. 
4. Stay consistent – Use your software weekly to avoid end-of-quarter rushes. 
5. Get support – Reach out to customer service or a qualified accountant. 

Conclusion 

Making Tax Digital software for landlords isn’t just a compliance tool—it’s a smart way to simplify your financial life, reduce tax-time stress, and get a clearer view of your property income. 

By starting early and choosing the right platform, you can stay ahead of HMRC’s deadlines, reduce errors, and even improve your profitability. MTD doesn’t have to be a headache—with the right tools, it’s actually a step forward.