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Four Quarters

Making Tax Digital for landlords

Pick the right MTD software before HMRC's deadline.

From April 2027, landlords and sole traders with income over £30,000 must keep digital records and send HMRC an update every quarter. We compare the approved software in plain English, so you can choose in ten minutes.

Check if you need it Compare software

When MTD starts for you

6 Apr2026

Over £50,000Based on 2024–25 income. Already live.
6 Apr2027

Over £30,000 NextBased on 2025–26 income.
6 Apr2028

Over £20,000Based on 2026–27 income.

Step 1

Do I need Making Tax Digital?

HMRC looks at your qualifying income: your total rent and self-employment income before expenses. Add the two together. If you own a property jointly, count only your share.

Step 2

MTD software for landlords, compared

All of these say they support MTD for Income Tax: quarterly updates and the end-of-year return. Prices are the standard monthly price before VAT. Many offer a big discount for the first few months.

Software	Best for	From (ex VAT)	Trial or offer
HammockBuilt for landlords	Landlords with 1–20 properties who only need property accounts	£8/mo 1–3 properties	30-day free trial	See plans
Xero IgniteFull accounting	Landlords who also run a small business	£18/mo	90% off for 6 months	See plans
QuickBooks Sole Trader PlusFull accounting	Sole traders who also let out property	See site	30-day free trial	See plans
Sage Accounting StartFull accounting	People who already know Sage or have an accountant who uses it	£20/mo	90% off for 6 months, or 1 month free	See plans

Prices checked on 24 September 2026 on each company's own pricing page. They change often, so confirm on the provider's site before you sign up.

Simplest for landlords

Hammock

Choose it if rent is your only business income.

Rent and arrears tracking
Bank feeds on every plan
Price rises with number of properties

Landlord plus business

Xero or QuickBooks

Choose one if you also invoice customers or run a side business.

Invoicing, receipts and bank feeds
Widely used by accountants
More features than a landlord needs on its own

Keep your accountant happy

Whatever they use

If you have an accountant, ask which software they support first.

Many accountants get partner pricing
Sharing access saves time at year end
Switching later is a hassle

On a tight budget?

Some tools have free plans for landlords, including Pandle, QuickFile and Landlord Studio (according to MTD Compare). Free plans usually have fewer features or limits on transactions, so check they cover quarterly updates and the end-of-year return. HMRC keeps an official list of compatible software.

Step 3

How to choose in four questions

Is rent your only business income?If yes, a landlord-only tool is usually cheaper and simpler.
How many properties do you have?Some tools charge by property, so compare the plan that fits your portfolio.
Do you want bank feeds?They pull in transactions automatically, which saves typing every quarter.
Does your accountant use it?If you have one, their answer usually settles it.

Questions

Common questions

What do I send HMRC each quarter?

A summary of your income and expenses for the quarter, sent from your software. It's a running total, not a tax return. You still confirm the final figures once a year.

Is it based on income or profit?

Income. HMRC uses your rent and self-employment turnover before any expenses are taken off.

I own a property with my partner. What counts?

Only your share of the rent counts towards your threshold.

Can I keep using spreadsheets?

You can if you use "bridging" software that links your spreadsheet to HMRC. Check it's on HMRC's list of compatible software.

When will HMRC tell me?

HMRC reviews Self Assessment returns and writes to people over the threshold before they need to start. Don't wait for the letter to choose software.