UK landlords are facing the biggest workflow change in a generation. From 6 April 2026, landlords with gross property income above £50,000 must use MTD-compatible software to keep digital records and file quarterly updates to HMRC. From April 2027 the threshold drops to £30,000, capturing many more in scope. The right software choice depends on portfolio size, complexity and whether you also run a business or trade.
Single-property landlords
For a landlord with one rental property and no trade, lightweight options work well. Hammock and Landlord Studio are property-specific tools designed for buy-to-let, with native support for rent collection tracking, tenant deposits and property-level profitability. Both are MTD-ITSA-ready. For a single-property landlord who wants simple, focused software, these are sensible choices.
Multi-property portfolios
For landlords with three or more properties, the case for full cloud accounting strengthens. Xero with tracking categories (one per property) gives you property-level profit and loss, balance sheet visibility, mortgage interest and capital improvement separation, and a single audit trail. FreeAgent also handles multi-property well with a cleaner sole-trader workflow.
- Joint ownership: Where a property is jointly owned, the split needs to be configured correctly in software rather than retrofitted at year end.
- Section 24: Mortgage interest relief is restricted to basic rate; software needs to handle this in the tax calculation.
- Capital expenditure: Roof replacements and structural improvements are capital, not revenue, and must be flagged at entry.
- FHL changes: Furnished Holiday Let treatment changed in 2025 and software needs to reflect the new rules.
Landlords with mixed income
If you run a sole trade alongside rental income, MTD ITSA treats each as a separate income source with its own quarterly cycle. Xero, FreeAgent and QuickBooks all handle this, but the setup needs care. We typically recommend a single Xero organisation with tracking categories for trade and property, or two separate Xero organisations if the volumes warrant it.
Limited company landlord structures
For incorporated property businesses (SPVs), the software conversation is different. The company files Corporation Tax and VAT (if applicable), not Self Assessment. Xero or QuickBooks both work well, with property-level tracking categories carrying the analytical load.
How PushDigits supports your software choice
As ICAEW Chartered Accountants and Xero Platinum Partners, we work with UK landlords ranging from one-property casual landlords to portfolios of forty-plus properties. For MTD ITSA readiness, see our Self Assessment and tax planning services, or book a consultation.