The best MTD software for landlords in 2026 is Xero Simple at £7/month for its property income tracking, or FreeAgent if you have a NatWest business account (free). Both handle multiple properties, expenses, and quarterly MTD submissions.
What landlords need from MTD software
Landlords face a different set of bookkeeping challenges from freelancers. You need to track income and expenses across multiple properties, categorise costs by property, and handle things like capital allowances and mortgage interest relief. Here is what matters:
- Property income tracking — the ability to log rental income against individual properties so you can see which ones are profitable.
- Expense categorisation by property — repairs, insurance, management fees, and utility costs need to be separated per property for accurate reporting.
- Quarterly submissions — MTD Income Tax requires quarterly updates to HMRC. Your software must handle this via its API.
- Capital allowances — properties often involve capital expenditure (furniture, fixtures, improvements) that needs to be tracked separately from revenue expenses.
Top picks for landlords
Xero Simple — best for multiple properties
At £7/month, Xero Simple gives you tracking categories that let you separate income and expenses by property. This makes it the strongest option for landlords with multiple properties who need per-property reporting. It supports MTD Income Tax quarterly submissions and integrates with a wide range of property management tools.
FreeAgent — best for 1–3 properties with NatWest
If you bank with NatWest, RBS, Mettle, or Ulster Bank, FreeAgent is free. It handles property income and expenses well for landlords with one to three properties. The interface is simpler than Xero, which is an advantage if you want straightforward bookkeeping without configuration.
QuickBooks — best for mixed portfolios
At £10/month, QuickBooks Sole Trader works well for landlords who also have self-employment income. It supports both property and trade income in a single dashboard, and its mobile app makes it easy to capture receipts and expenses on the go.
Sage Start — established UK brand
At £14/month, Sage is the most established UK accounting brand. It handles MTD Income Tax submissions and property income tracking. Sage is a good choice for landlords who prefer a well-known UK brand with local support, though it is the most expensive entry point here.
Comparison table
| Software | Price | Best for | MTD status | Key limitation |
|---|---|---|---|---|
| Xero Simple | £7/month | Multiple properties | HMRC-recognised | More complex than FreeAgent |
| FreeAgent | Free with NatWest, otherwise £19/mo | 1–3 properties | HMRC-recognised | Fewer integrations than Xero |
| QuickBooks Sole Trader | £10/month | Mixed portfolios | HMRC-recognised | Higher entry price |
| Sage Start | £14/month | UK brand preference | HMRC-recognised | Most expensive entry point |
How to choose
The right pick depends on three things:
- Number of properties. One to three: FreeAgent keeps it simple. Four or more: Xero’s tracking categories scale better for per-property reporting.
- Your bank. If you bank with NatWest, RBS, Mettle, or Ulster Bank, FreeAgent is free — start there unless you need Xero’s flexibility.
- Accountant collaboration. If your accountant uses Xero, it is easier to stay within the same ecosystem. If you self-serve, FreeAgent is the most opinionated and easiest to use.
FAQ
What is the best MTD software for landlords with one property?
FreeAgent is the best option for landlords with one or two properties if you bank with NatWest or RBS (it is free). It handles property income tracking, expenses, and quarterly MTD submissions in a simple dashboard.
Can landlords use Xero for multiple properties?
Yes. Xero supports tracking categories that let you separate income and expenses by property. This makes it the strongest option for landlords with four or more properties who need per-property reporting.
Do landlords need MTD software?
If your qualifying property income exceeds £50,000 from April 2026, MTD Income Tax is mandatory. You must use HMRC-recognised software to submit quarterly updates. Below that threshold it is voluntary but useful for keeping records organised.
Which MTD software handles capital allowances for landlords?
Xero and QuickBooks both support capital allowances and property adjustments. FreeAgent handles them too, though its reporting is simpler. For complex portfolios with capital allowances, Xero offers the most flexibility.