MTD software · Landlord guide · 2026

MTD software for landlords: what you need for Making Tax Digital.

Source: gov.uk — Find MTD-compatible software

What software do you need?

UK landlords in scope for MTD Income Tax need HMRC-recognised MTD-compatible software that maintains digital records and submits quarterly updates to HMRC directly. Several all-in-one cloud bookkeeping platforms and specialist property tools are recognised by HMRC. Standalone spreadsheets are not sufficient without a compliant digital link to a recognised submission tool. We set up and manage software for every MTD client.

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Written by Mehmood Rajoka

Managing Partner, RR Accountants · IFA-supervised practice

Last updated: 31 May 20266 min readGeneral information, not personal tax advice

MTD software options for landlords

Vendor names below are reference points only — HMRC publishes the authoritative list of MTD-recognised software at gov.uk — Find MTD-compatible software. RR Accountants does not receive vendor fees for recommendations.

Xero

Best for portfolios of 3+ properties or SPV landlords

Pros

✓Full double-entry bookkeeping
✓Direct MTD submission to HMRC
✓Strong property income/expense categorisation
✓Integrates with bank feeds

Cons

✗Higher cost than simpler options
✗More features than simple portfolios need

Best for

3+ properties, landlords with SPVs, mixed portfolios

FreeAgent

Good for straightforward personal-name portfolios

Pros

✓HMRC-recognised MTD platform
✓Simpler interface
✓Lower cost than Xero
✓Good for sole traders and landlords combined

Cons

✗Less suited for complex portfolios or SPVs
✗Limited property-specific features

Best for

1–3 properties, personal-name only, no SPV

QuickBooks

Widely used, suitable for mixed business + rental income

Pros

✓MTD-compatible
✓Good if you have self-employment income alongside rental
✓Strong bank feed connections

Cons

✗Property categorisation less specialised than Xero

Best for

Landlords with combined self-employment and rental income

Spreadsheet + MTD bridge

Permitted but higher risk of compliance errors

Pros

✓Familiar format
✓Lower ongoing cost

Cons

✗Digital link must be maintained — manual re-keying breaks compliance
✗More user error risk
✗Not recommended for most landlords

Best for

Only if already using spreadsheets and unwilling to migrate — with professional setup

MTD software for landlords — FAQs

What software do landlords need for MTD Income Tax?

Landlords need HMRC-recognised MTD-compatible software that can: maintain digital records of rental income and expenses, create a compliant digital link from those records to HMRC, and submit quarterly updates via the MTD API. Common options include all-in-one cloud bookkeeping platforms and specialist property management platforms with an MTD bridging product. You cannot use paper records or unsupported spreadsheets alone.

Can I use a spreadsheet for MTD as a landlord?

Not alone. Spreadsheets are permitted as part of a compliant chain only if there is an unbroken digital link from the spreadsheet through to the MTD submission software. A compliant setup might be: spreadsheet records exported to a recognised bridging product and submitted to HMRC. Manual re-keying from spreadsheet to software breaks the digital link and puts you out of compliance. Most landlords are better served by a purpose-built platform.

Is Xero good for landlord MTD?

Xero is one of the most widely-used MTD-compatible platforms. It handles digital records, has clean property income and expense categorisation, integrates directly with HMRC for quarterly submissions, and produces annual accounts-quality records. It is well-suited for landlords with 3+ properties, particularly if they also have an SPV that needs full accounts.

Is FreeAgent suitable for landlords?

FreeAgent is HMRC-recognised and MTD-compatible. It is simpler and lower-cost than Xero. Good for landlords with straightforward portfolios — residential properties, personal-name ownership, no complex corporate structure. Less suited for HMO operators or landlords with SPVs who need more detailed categorisation.

Do I need the same software for my SPV and my personal properties?

Not necessarily. Your SPV (limited company) needs accounting software for annual accounts and CT600. Your personally-held properties need MTD-compliant software for quarterly submissions. Many landlords use a single platform for both, which simplifies bookkeeping. We set up and manage both in our landlord engagements.

Who sets up the MTD software — me or my accountant?

Your accountant should set it up. Software configuration, HMRC connection, digital link verification, and onboarding training take time and technical knowledge. An accountant who says 'here is a login, good luck' is not managing your MTD compliance — they are delegating risk to you. We set up software, connect to HMRC, and train clients on the quarterly process for every MTD engagement.

Related guides in the MTD-IT series

The pillar plus six companion spokes that go deeper than this page.

MTD for Income Tax — pillar guide

The full 2026 overview: thresholds, the quarterly cycle, software, and how to prepare.

Who is in scope — the threshold rules

Gross-income test, base-year examples, combined sole-trade and property income.

What you do each quarter

Cumulative updates, deadlines, dry runs, and final declaration sequencing.

Penalties and the 2026/27 soft landing

Point system, £200 threshold, what the grace period does and does not cover.

MTD for landlords

Gross rent, joint ownership, what counts as your share of property income.

MTD for sole traders

Self-employment rules, side-income combinations, partnership status.

How to prepare before your start date

A practical do-it-now checklist for April 2026, 2027 and 2028 phases.

MTD compliance, handled.

Property-specific MTD software, a chartered practice that runs the quarterly cycle for you, or both.

LandlordFlow

MTD for landlords, property-by-property

Built for landlords: rent ledgers, allowable-expense tracking, SPV-aware reporting, and MTD-compliant quarterly submissions.

See LandlordFlow

Done-for-you MTD by a chartered practice

We run the quarterly cycle for you — digital records, MTD submissions, the final declaration, deadline tracking. No software learning curve.

Talk to RR

SmartBooks

MTD-ready bookkeeping for sole traders

UK-built bookkeeping software designed for MTD from day one. Quarterly updates, cumulative submissions, and the final declaration — handled.

See SmartBooks

Book a call 0330 043 5643

About the author

Mehmood Rajoka, Managing Partner, RR Accountants

Managing Partner at RR Accountants — a UK practice supervised by the Institute of Financial Accountants. Specialist focus on UK landlord and property tax, MTD for Income Tax, and limited-company advisory. RR Accountants serves clients across nine physical UK offices plus Glasgow service area.

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This guide is general information about UK tax rules. It is not personal tax advice or a vendor endorsement. For advice tailored to your situation, speak to a regulated UK accountant. All figures verified against gov.uk and ICAEW as of 31 May 2026. MTD rules and the HMRC-recognised software list continue to evolve — re-check primary sources before acting.