The Best MTD Software for Landlords in 2026 — Including the Free Options

First, the honest bit

We don't sell tax software and we're not paid to recommend any — so this is just the straight version. If Making Tax Digital (MTD) for Income Tax applies to you (£50k+ gross from April 2026, dropping to £20k by 2028), you'll need to keep digital records and file quarterly using MTD-compatible software. The good news: for a landlord with a handful of properties, you do not need to spend much — and possibly nothing.

The genuinely free routes

• FreeAgent — free with a Mettle, NatWest, Royal Bank of Scotland or Ulster Bank business account. Full-featured, has a landlord mode, HMRC-recognised end to end for MTD for Income Tax. If you hold (or open) one of those accounts, this is the cheapest complete route at £0. (Mettle asks for at least one transaction a month to keep FreeAgent free.)
• Coconut — free for two years if you open it via a new Zempler bank account (otherwise around £130/year for the filing plan). Mobile-first, handles property income, HMRC-recognised.
• Sage Sole Trader has a free tier with no time limit or bank condition — but it's aimed at sole traders, so confirm it handles property income (SA105) for your situation before relying on it.

The cheapest paid routes

• 123 Sheets — about £19.75 + VAT per year. "Bridging" software: you keep your own spreadsheet and it sends the figures to HMRC. Cheapest paid option, and fine if you like spreadsheets.
• Hammock — around £8/month + VAT (1–3 properties). A landlord-specialist tool with rent and arrears tracking built in, plus MTD quarterly filing.

The mainstream names

• Xero is HMRC-recognised for MTD for Income Tax (confirmed on Xero's own site); entry pricing is modest but check the current tier.
• QuickBooks and Sage also offer MTD for Income Tax on their paid tiers — compatibility is reported but confirm the current price and that the plan covers Income Tax, not just VAT.

The rule that saves you money

Spreadsheets are still allowed — HMRC accepts a spreadsheet plus "bridging" software, as long as there's a digital link (you must not re-type figures between them). So if your bookkeeping is a tidy spreadsheet, a cheap bridging tool like 123 Sheets can be all you need.

How to choose in 60 seconds

1. Bank with NatWest/RBS/Mettle/Ulster? Use FreeAgent free. Done.
2. Love spreadsheets? 123 Sheets bridging, ~£20/year.
3. Want landlord features (rent tracking)? Hammock.
4. Already use Xero/QuickBooks? Turn on their MTD for Income Tax module.

The one thing to check before you buy

Make sure the product is recognised for MTD for Income Tax — not just MTD for VAT (they're different). Check it on HMRC's official "find software" tool, because the recognised list changes frequently.

Free: Not sure MTD even applies to you? Use our free Am I in MTD? checker — 30 seconds, no software pitch — and grab the 2026/27 Compliance Calendar while you're there.

Information, not tax advice. Prices and compatibility verified 6 July 2026; check HMRC's current software finder before choosing. England/UK.