Making Tax Digital: Is Your Landlord Accounting Software Ready?

Get MTD-Ready Now – Don't Leave It Until the Next Deadline

Making Tax Digital (MTD) for Income Tax is already underway, with the first phase having started on 6 April 2026 for qualifying landlords and self-employed individuals with annual qualifying income over £50,000.

The next major milestone is 6 April 2027, when the requirements will extend to those with qualifying income over £30,000.

Whether you're already required to comply or preparing for the next phase, now is the ideal time to make sure your property finances are organised and your accounting software is up to the task.

What Software Do Landlords Need?

Under Making Tax Digital, affected landlords must maintain digital records of their property income and expenses using compatible software, submit quarterly updates to HMRC and complete their year-end reporting requirements.

Fortunately, there are several software packages available, including options designed specifically for landlords.

Landlord-Specific Accounting Software

If you own one or more rental properties, dedicated landlord software can be particularly useful because it combines financial reporting with everyday property management.

Hammock

Designed specifically for landlords, Hammock helps you monitor rental income and expenditure, connect bank accounts and keep track of your property finances. It offers MTD-related functionality and is particularly useful for landlords who want a clearer picture of their rental profitability.

Landlord Vision

A comprehensive property management and accounting platform suitable for landlords with small or larger portfolios. Features include rent tracking, expense management, maintenance records and tenancy administration, alongside tools to support digital tax reporting.

Landlord Studio

A practical option for landlords who prefer managing their finances from a smartphone. Landlord Studio offers income and expense tracking, receipt scanning, property management features and MTD-related functionality.

General Accounting Software

You don't necessarily need specialist landlord software. Several established accounting platforms also offer Making Tax Digital solutions.

Popular options worth considering include:

• QuickBooks – A user-friendly accounting platform offering bank connections, expense tracking and digital tax reporting tools.
• Xero – Well suited to landlords and businesses wanting automated bank feeds, real-time financial reporting and accounting integrations. Check its current MTD for Income Tax plans and pricing.
• FreeAgent – A straightforward accounting solution, particularly useful for sole traders and smaller property businesses.
• Sage Accounting – An established accounting platform offering financial management and reporting features.
• Zoho Books – A flexible accounting solution with automation and financial reporting tools.

Important: Not every subscription, software package or feature supports MTD for Income Tax. Before signing up, check that your chosen product supports your specific reporting requirements using HMRC's official software finder.

Our Advice to Landlords

At iERO, we recommend getting your digital records organised as early as possible, even if Making Tax Digital won't apply to you until 2027 or later.

Choosing the right software now gives you time to understand your rental income, categorise expenses correctly, organise receipts and work with your accountant to ensure everything is ready.

If your property is professionally managed, your letting agent should already be able to provide clear records of rental income, management fees and property-related expenditure. These can help make the transition to digital accounting considerably easier.

Remember: Your letting agent can help provide the financial information you need, but responsibility for complying with HMRC's tax reporting requirements remains with you.

How iERO Can Help

At iERO, we provide landlords with clear rental statements and records of property-related income and expenditure, helping make annual accounting and tax preparation more straightforward.

While we cannot provide individual tax advice, we are always happy to help our landlords access the property financial information they need to share with their accountant or use with their chosen software.

For more information about Making Tax Digital and compatible software, visit:

HMRC – Find software that works with Making Tax Digital for Income Tax

iERO – Making Property Simple.

www.ieroproperty.com