MTD for Landlords 2026: Choosing Software and Setting Up Your Quarterly Workflow

Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) goes live for UK landlords on 6 April 2026. If your gross self-employed + rental income for 2024/25 was above £50,000, you must use HMRC-recognised software to submit four quarterly digital updates and a final annual declaration. The annual SA return is gone. This guide covers the software shortlist and the practical bookkeeping workflow.

Are you in scope?

• April 2026: gross self-employed + rental income > £50,000 (2024/25 basis)
• April 2027: > £30,000
• April 2028: > £20,000
• Joint owners: each individual's share counts — a couple with £80k of rental income split 50:50 are EACH below £50k and out of scope until 2027

Use our MTD Readiness Calculator to find your specific mandation date and quarterly cash-aside number.

The MTD-recognised software shortlist (2026)

Hammock (£15-25/month per landlord)

Property-specific from the ground up. Connects to your business bank account, auto-categorises transactions, splits joint-ownership returns, handles MTD submission. The strongest fit for landlords with 1-10 properties who don't already use Xero / QuickBooks. Has a dedicated Section 24 reducer calculation.

Landlord Vision (£15-30/month)

Property-management + accounting in one tool. Tenant tracking, rent reminders, maintenance log, plus the MTD-compliant accounting layer. Good if you self-manage. Heavier UI than Hammock.

FreeAgent (free for some NatWest customers; £15-30/month otherwise)

General-purpose accounting (originally for freelancers) with MTD ITSA module for landlords. Free with eligible NatWest / Mettle / RBS business accounts — making it effectively zero-cost for many landlords. Less property-specific than Hammock but solid.

Coconut (£8-20/month)

Lightweight, mobile-first. Designed for sole traders but adapts for landlords. Best if you have 1-2 properties and want the cheapest compliant option.

QuickBooks / Xero (£14-65/month)

Heavyweight accounting platforms. Both MTD ITSA-ready. Overkill for most landlords but the right choice if you also run a separate business that needs proper books.

Spreadsheet + bridging software (£0-£12/month)

Keep your existing Excel / Numbers / Google Sheets workflow and use HMRC-recognised bridging software (123 Sheets, ANNA, BTCSoftware) to file. Cheapest option. Less automation but no platform-switching.

The practical quarterly workflow

MTD doesn't change WHAT you record — only the cadence. Recommended quarterly bookkeeping rhythm:

1. Day 1 of each quarter: bank feed runs; software pulls 90 days of transactions
2. Days 1-5: reconcile / categorise unclear transactions (15-30 min for typical 1-3 property landlord)
3. Days 5-7: review the auto-generated profit summary, flag anomalies, attach any receipts not in the bank feed
4. Day 7 (default): submit the quarterly update to HMRC via the software

HMRC quarterly deadlines: 7 August, 7 November, 7 February, 7 May (1 month + 7 days after each quarter end).

The final declaration replaces SA

After the four quarterly updates, you have until 31 January (the year after the tax year ends) to file a final declaration confirming your annual figures, plus any other income (employment, dividends, interest). The final declaration replaces the SA100 self-assessment return for in-scope landlords.

Penalties under MTD

Points-based: each missed quarterly submission earns 1 point; 4 points = £200 fixed penalty. Late payment interest is base + 2.5%, with 5% surcharges at 30 / 180 / 365 days late. The penalty regime is stricter than the old SA system — keep the calendar.

What to do this quarter

1. Confirm your mandation date with the MTD Readiness calculator
2. Pick a software (Hammock for property-only; FreeAgent if you have NatWest; spreadsheets + bridging for minimum cost)
3. Link your bank account / property-management feed
4. Do a dry-run quarter now (Q1 2026/27 runs Apr-Jun) — find the friction points before they cost you penalties