Landlord accounting software for MTD for Income Tax. Required for all landlords whose combined property and/or business income is £50,000 or more a year.
In April 2026, HMRC is launching Making Tax Digital (MTD), a new system that requires landlords to keep and submit digital records of their taxes.
If you’re a landlord who earns £50,000 or more per year from your property and/or business income, keep reading. You’ll need to make some changes to your book-keeping and use HMRC-approved landlord accounting software once the new rules kick in.
We know that these changes can feel overwhelming at first, so we’ve shared a complete guide to MTD for landlords here. In summary:
- MTD for ITSA (Making Tax Digital for Income Tax Self Assessment) comes into effect from 6th April 2026.
- If you’re a landlord and you earn £50,000 or above per year from property and/or sole trader income, you need to sign up for MTD.
- Instead of filing one tax return per year, you’ll need to provide: quarterly updates on income and expenses, an End Of Period Statement (EOPS) once a year, and a final declaration of income once a year.
- You must use HMRC-approved software to prepare and file your digital returns.
That last point is key, as you’ll need to use compliant software to meet HMRC’s new regulations. In this post, we’re going to dive into what that means, so that you’re fully prepared and can choose the best platform for you.
- Is there a free software that’s compatible for MTD for landlords?
- Why do landlords need accounting software for MTD?
- Can you continue using free tools such as Excel?
- What must landlords send to HMRC for MTD?
- How to choose the right MTD software for landlords
Let’s get started—and remember, MTD is designed to make your life easier. Once you get used to the new system, you should find it much more straightforward to keep on top of your taxes and avoid any surprise payments.
Is there a free software that’s compatible for MTD for landlords?
Whether it’s using accounting software or a good old spreadsheet, chances are you’re already keeping your business records digitally. However, HMRC has been very specific about the type of software that will be eligible for MTD.
This means that there is no free MTD software for landlords. HMRC has released a list of tools that have been approved for MTD, which are all paid platforms. They’re likely to add more tools to the list in future, and you can contact your current provider to ask if they’re developing their MTD compliance.
You’ll need to get started with one of these platforms before you sign up to MTD.
Why do landlords need accounting software for MTD?
The problem with the current system is that it can be really hard to provide HMRC with the correct information at the end of each tax year. Their hope is that moving to digital record keeping will improve the accuracy and efficiency of your accounting. In other words, no more hours spent trawling through invoices and expenses every time January rolls around.
From April 2026, making tax digital for landlords requires you to provide HMRC with real-time data on your property and/or business income throughout the year. Accounting software makes it possible to do this accurately and automatically.
According to HMRC, MTD-compliant software should be able to:
- Maintain business records as set out in the regulations (more on this below)
- Prepare and send quarterly updates and end of period statements based on those records
- Finalise your business income and submit your declaration after the end of the tax year
- Communicate with HMRC digitally through its API
Essentially, choosing the best MTD software for landlords could take a lot of work off your plate.
Can you continue using free tools such as Excel?
There’s nothing stopping you from using tools like Excel to track your finances. However, you would still have to upload all of this data into an HMRC-approved software platform to meet the MTD regulations.
So sadly, spreadsheets alone won’t cut it. It might be simpler to leave them behind and find landlord accounting software that meets the criteria.
What must landlords send to HMRC for MTD?
MTD will replace the single Self Assessment tax return (online or paper) that you usually file once a year. Instead, you’ll need to submit the following documents via your chosen accounting software:
Quarterly updates by 5th August, 5th November, 5th February and 5th May every year
Once a quarter, you’ll need to send HMRC updates on your property and/or business income and expenses. These will need to be digital records.
End of Period Statement (EOPS) by 31st January
After the tax year has ended, you’ll use your software to generate an EOPS. This should provide accurate property income and allowable business expenses.
Final declaration of all your income by 31st January
The third step is providing HMRC with a final declaration of all annual income.
Some landlords might need to submit more than four quarterly updates and more than one EOPS per year. This applies if you earn £50,000 or more per year from multiple income streams (e.g. rental and freelance income) or different property categories (e.g. overseas lets and furnished holiday lets). Remember, you can learn more in our complete guide to MTD for landlords.
So keep in mind that you could be filing as many as twenty submissions per year—all the more reason to choose the right software. Luckily, you only need to submit one final declaration covering all your income sources.
How to choose the right MTD software for landlords
HMRC’s list of MTD-compliant software features a lot of popular tools, like Quickbooks, Sage and Xero. So if you’re a business or sole trader who’s already using one of these tools, the transition to MTD might be fairly straightforward.
The problem is that most accounting software like these aren’t set up for landlords, who have different needs—like managing multiple tenants and properties, all with various payments and expenses. This can make the switch to MTD feel more intimidating, especially as there is no free MTD software for landlords and trusted tools like Excel can’t be used.
That’s where Hammock comes in.
Hammock – the Sage or Xero for landlords
Hammock is the property finance platform built for landlords, by landlords. We’ve been recognised by HMRC as having software that’s compatible with Making Tax Digital for Income Tax and our specially designed landlord accounting software can make the move to MTD a whole lot easier.
With Hammock, you can record all the data needed for filing your tax returns digitally. You’ll be able to export quarterly and annual data in an HMRC-friendly format, ready for submission.
Either you can handle everything yourself or you can give access to your accountant to manage your quarterly updates, EOPS and final declaration each year. We suggest recommending Hammock to your accountant, as they may be able to cover the cost for free. Here’s a handy email template explaining the benefits of Hammock that you can forward to them.
>> Tell My Accountant About Hammock <<
Since MTD will be here before we know it, it’s a good idea to prepare well in advance and find the right landlord accounting software. That’s why we’re giving you the opportunity to try Hammock for free for 30 days.
Recap: everything you need to know about MTD software for landlords
To recap, here are the key things you need to know about choosing accounting software for MTD:
- HMRC requires landlords to use MTD-compliant software to keep and file digital tax records.
- Accounting software is needed to keep accurate, real-time records of your property income and expenses. Approved software will integrate with HMRC’s API to submit your documents in the correct format.
- There is no free MTD software for landlords and tools like Excel don’t meet the criteria.
- Hammock is the Xero for landlords. You can use Hammock alongside Sage for a solution that’s designed especially for landlords and is compatible for MTD.
We hope this guide has made it easier to understand MTD software for landlords and choose the right tool for you.
If you’ve got any questions about MTD or Hammock, we’re always happy to help. Hit the chat button in the bottom right corner of your screen or drop us an email at firstname.lastname@example.org.