Property income counts toward your MTD Income Tax obligations, and landlords have the extra job of keeping each property's income and expenses separate. You want software that tracks per property, handles mortgage interest and capital allowances, and submits your quarterly updates cleanly.
Answer 5 questions, get your shortlist
The MTD Software Finder asks how your business actually works — your bank, how busy you are, what matters most — then recommends three tools with honest reasons and limitations.
What landlords actually struggle with
- Tracking rental income and expenses separately for each property
- Handling mortgage interest, repairs, and capital allowances accurately
- Filing property income quarterly under MTD without double entry
- Putting numbers in front of an accountant in a shape they actually want
- Paying only for what a rental portfolio, not a full business, needs
Three MTD software picks for landlords
Each pick below is HMRC-recognised for MTD Income Tax — with one honest exception pointed out where relevant.
Xero is a mature cloud accounting platform, HMRC-recognised for MTD Income Tax since the pilot phase. It offers the largest UK app ecosystem and very reliable bank feeds.
- Best for
- Sole traders & landlords who want a mature ecosystem and lots of integrations
- Not ideal for
- Not ideal if you only need a simple, opinionated package — FreeAgent is often cheaper and easier for that.
Key features
- MTD Income Tax submissions
- Largest UK app marketplace (1,000+ add-ons)
- Strong, reliable bank feeds
- Multi-currency, projects and inventory on higher tiers
Worth knowing: The entry Xero Simple plan (£7/month) is fairly limited, pricing is per company so it adds up with multiple entities, and UK phone support is reserved for higher tiers.
Price: From £7/month (Xero Simple) — £33/month (Grow)
Affiliate link — see our disclosure.
FreeAgent is an HMRC-recognised accounting package for UK freelancers, sole traders, and micro limited companies. It bundles bookkeeping, invoicing, time tracking, and mileage into one simple dashboard.
- Best for
- UK sole traders & micro limited companies who want a simple all-in-one package
- Not ideal for
- Not ideal if you need a wide app ecosystem or bespoke workflows — third-party integrations and reporting customisation are more limited than Xero or Sage.
Key features
- MTD Income Tax submissions
- Built-in time tracking, mileage and CIS
- Self Assessment and corporation tax support
- Invoicing
Worth knowing: The free tier only applies if you hold a qualifying NatWest, RBS, Mettle, or Ulster Bank business current account — everyone else pays the monthly subscription.
Price: Free with a NatWest, RBS, Mettle, or Ulster Bank business current account, otherwise from £19/month + VAT
Sage Accounting is HMRC-recognised for MTD Income Tax and comes from the UK's most established accounting brand. It suits established businesses and landlords who prefer a traditional UK name.
- Best for
- Established UK businesses & landlords who want a recognisable UK brand
- Not ideal for
- Not ideal if you need the broadest app ecosystem — Sage's add-on market is smaller than Xero's.
Key features
- MTD Income Tax submissions on all plans
- Built-in payroll on the Plus tier
- Sage Copilot AI features on newer tiers
- Stable bank feeds and multi-entity support
Worth knowing: Pricing has crept up, useful features are reserved for higher tiers, and the Sage product-line split can confuse first-time buyers.
Price: From £14/month (Accounting Start) — £36/month (Accounting Plus)
Affiliate link — see our disclosure.
Selection criteria for landlords
These are the features that matter most when choosing MTD software for landlords.
- Recognised on the official HMRC list of MTD-compatible software
- Per-property income and expense tracking built in
- Correct handling of mortgage interest and capital allowances
- MTD Income Tax submissions for rental income each quarter
- Clean reporting you can hand to an accountant
- A price that fits a portfolio, not a staffed business
Your MTD prep checklist
- Create one category per property before you start logging anything
- Separate deposit and savings accounts from the properties you let
- Decide who owns each property — your software needs that for reporting
- Set aside the quarterly deadline dates now
- Export a per-property P&L from your old records and keep them safe
- Check how your software handles a jointly-owned property
Tools made for landlords
MTD Software Finder
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Open tool →Am I in scope?
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