For many landlords, the world of tax and compliance can feel overwhelming. With the introduction of Making Tax Digital (MTD) by HMRC, the pressure to keep accurate digital records and submit quarterly updates has grown considerably. While the aim of MTD is to simplify and modernise tax reporting, it has also left landlords asking: which software is worth investing in?
The truth is that there isn’t a one-size-fits-all solution. The right choice depends on the scale of your property portfolio, how you currently manage your finances, and whether you rely on an accountant. Let’s explore what you should be looking for when choosing MTD software, and some of the most popular options available in 2025.
What to Look for in MTD Software
Before diving into specific tools, it’s important to understand what makes software suitable for landlords. Some of the key features to consider include:
- HMRC Compatibility – Not all accounting software is MTD-approved. Ensure the provider is officially recognised by HMRC for MTD for Income Tax Self-Assessment (ITSA).
- Ease of Use – As a landlord, you may not want to spend hours learning a complicated system. Look for intuitive dashboards and clear reporting tools.
- Property-Specific Tools – Some software is built with landlords in mind, offering rental income tracking, expense categorisation, and portfolio management.
- Integration with Accountants – If you use an accountant, make sure they are comfortable with the system and can access your records easily.
- Cost – Prices vary widely, from basic bridging software to premium platforms with full accounting features.
The Future of MTD for Landlords
From April 2026, landlords with rental income above £50,000 will need to comply with MTD for ITSA. That means landlords have only a short window to adopt digital tools. Starting early is sensible, as it gives you time to test software, get comfortable with digital record-keeping, and iron out any issues before quarterly reporting becomes mandatory.
Conclusion
Selecting the best MTD software for landlordsisn’t about choosing the flashiest platform; it’s about finding a system that aligns with your property business. Whether you opt for a full software package or a simpler bridging tool to complement spreadsheets, the important thing is compliance and ease of use.
Ultimately, the best MTD software for landlords is the one that makes your life simpler, keeps you on the right side of HMRC, and saves you valuable time—leaving you free to focus on managing your properties rather than worrying about paperwork.
