The Best Making Tax Digital (MTD) Software for UK Landlords

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is transforming the way UK landlords manage their property finances. Starting April 2026, anyone with over £50,000 in property or business income will have to keep digital records and submit quarterly updates to HMRC.

Most landlords see this as an HMRC burden — but what if it’s actually an opportunity to streamline your finances, gain real-time insights, and cut tax-season stress?

Why MTD Exists (and Why It Feels Frustrating)

MTD’s goal is to make tax administration more efficient and accurate. The problem? Paper receipts, spreadsheets, and last-minute self-assessments no longer cut it. The government wants API-linked software handling every entry.

Landlords now face three challenges:
1️⃣ External: Complex legislation and technical setup
2️⃣ Internal: Fear of choosing the wrong software and missing deadlines
3️⃣ Philosophical: A sense HMRC favours bureaucracy over simplicity

Meet Your Guide — Optimise Accountants

I’m Simon Misiewicz, FCCA, ATT, EA, MBA, founder of Optimise Accountants. We’ve helped 1,500+ landlords migrate to MTD-ready systems and survive Section 24, incorporation, and cross-border tax headaches. My goal: make digital compliance your competitive edge — not your enemy.

Best MTD Software for Landlords (2025 Update)

Software	Monthly Cost	Best For	MTD Ready	Notable Features
Hammock	£15–£25	3–15 properties	✅	Full rent tracking, automated reconciliation
Landlord Vision	£15+	5+ properties	✅	Complete tenancy + accounting system
Xero	£7–£33	Ltd companies, cross-border	✅	Multi-currency, strong API
QuickBooks	£10–£28	Small businesses	✅	Broad features, reliable support
FreeAgent	£9.50–£24	Sole traders	✅	Free for NatWest users

Key insight: Hammock and Landlord Vision are the only landlord-specific platforms with direct HMRC approval and built-in property analytics.

How to Prepare for MTD (Step-by-Step)

Step	Action	Why It Matters
1️⃣	Audit your bookkeeping	Identify compliance gaps early
2️⃣	Choose your software	Align with your income level and comfort
3️⃣	Test quarterly submissions	Avoid first-deadline panic
4️⃣	Migrate historical data	Build accurate baselines
5️⃣	Review quarterly	Catch errors before they cost you

The Upside of Early Adoption

Early adopters save 30–40% of admin time and gain continuous cash-flow clarity. You’ll see profits, taxes, and rent trends in real time rather than once a year.

HMRC’s penalty system will be harsh — but proactive landlords will turn compliance into control.

👉 Tip: Start your MTD transition at least six months before your threshold year.

Author: Simon Misiewicz, FCCA ATT EA MBA
Director of Optimise Accountants — UK specialists in landlord tax, MTD compliance, and estate structuring.

Source: https://www.optimiseaccountants.co.uk/best-making-tax-digital-mtd-software-for-landlords/