Best accounting software for UK landlords: MTD IT 2026 guide

If you're a UK landlord managing rental properties, choosing the right accounting software matters more than ever. Making Tax Digital for Income Tax (MTD IT) begins in April 2026, and your software choice will determine how smoothly you meet your new tax obligations.

This guide covers what MTD IT means for landlords, the software options available, and how to choose the right approach for your property business.

Understanding MTD IT for rental property income

Making Tax Digital for Income Tax changes how landlords report rental income to HMRC. Rather than submitting one annual Self Assessment return, you'll maintain digital records throughout the year and send quarterly updates using HMRC-recognised software.

The system requires you to:

  • Record your rental income and expenses digitally
  • Submit four quarterly updates showing year-to-date totals
  • Complete a final annual declaration by 31 January

Whether MTD IT applies to you depends on your qualifying income. This is the total gross income from any self-employment and property before expenses are deducted. HMRC will determine who needs to join based on the 2024/25 Self Assessment return submitted by 31 January 2026, and is writing to people affected.

HMRC is phasing in when people are required to join MTD IT and the date depends on your gross income:

April 2026: For those with gross annual income over £50,000
April 2027: For those with gross annual income over £30,000
April 2028: For those with gross annual income over £20,000

What landlords need from MTD IT accounting software

For MTD IT compliance, your accounting software must:

  • Track rental income from all your properties
  • Record allowable expenses (repairs, maintenance, insurance, mortgage interest, agent fees, professional costs)
  • Appear on HMRC's list of recognised software products that integrate with their platform
  • Connect directly to HMRC's systems for quarterly submissions

HMRC doesn't provide free software for MTD IT, so landlords need to select from available commercial options. HMRC will remove the current gateway option for submitting your tax return for those mandated to use MTD IT.

Software approaches for property accounting

Landlords typically choose from three main approaches when managing their property accounts.

Specialist property management platforms

These combine tenant management, rent collection, and accounting features in one system. They suit landlords who want integrated operational and financial management.

General accounting software

Platforms such as QuickBooks or Xero can handle property accounting, particularly when used alongside other business activities. Many offer MTD IT compatibility with broader bookkeeping capabilities.

Purpose-built MTD IT software like TaxNav

TaxNav offers a simple and focused approach designed specifically for landlords and self-employed individuals:

‍Key features include:

Day-to-day recording

  • Browser-based access from any device (no installation required)
  • Mobile app and desktop application
  • Intelligent expense categorisation that reduces manual work
  • Enhanced security with encryption and two-factor authentication

Quarterly submissions

  • Built-in deadline notifications
  • Pre-submission error checking and automatic calculation verification
  • Automatic validation before each submission

Annual declaration & tax planning

  • Tax planning functionality that identifies overlooked allowable expenses
  • Guidance on capital allowances and tax relief mechanisms

For spreadsheet users:

TaxNav integrates seamlessly with Excel through purpose-designed templates or connects to your existing spreadsheet, so you can maintain your familiar workflow whilst staying compliant.

As HMRC-recognised software, TaxNav ensures full compliance whilst keeping the process simple and straightforward. The right choice depends on what your property business needs, but TaxNav is designed to address the specific challenges landlords face with MTD IT compliance - offering a low-cost alternative to complex accounting packages.

Quarterly reporting: what it involves

Quarterly updates under MTD IT show your cumulative position for the tax year to date. You'll report:

  • Total rental income received
  • Total allowable expenses incurred across all properties - either consolidated or categorised

These updates don't require detailed transaction-by-transaction reporting to HMRC. Instead, you just need to provide summary totals of your year-to-date figures, which keep your tax position current throughout the year. You'll still need to maintain detailed records for individual transactions, possibly in a spreadsheet or in TaxNav.

Even in quarters where you have minimal activity, an update is still required. Good digital record-keeping makes this routine rather than burdensome.

The importance of your final annual declaration

Your final annual declaration confirms your complete tax position for the year. This must be submitted by 31 January following the end of the tax year.

Important: You cannot file your annual declaration unless all four quarterly updates have been completed first.

Understanding penalties in your first year

From April 2026, you won't be penalised for late or incorrect quarterly MTD IT updates in your first year, but you must still submit all four using HMRC-recognised software. The year-end return is still fully subject to HMRC penalties if it's late, and you can’t file that until all four of your quarterly updates have been submitted.

To avoid a concentrated workload in January 2028, use the whole of the 2026/27 year to build your MTD IT familiarity and compliance.

Preparing for MTD IT implementation

Before April 2026:

  • Registration for MTD IT must be completed if you fall within the first wave
  • HMRC is writing to landlords who are likely to be mandated
  • Check your own qualifying income from recent tax returns for certainty

If you work with an accountant:

They'll need appropriate digital authorisation to submit updates on your behalf. Have those conversations now to ensure everything is in place before the deadline.

The current pilot programme:

The current HMRC pilot programme allows landlords to join MTD IT voluntarily and practise the quarterly submission process. This provides valuable experience with the system before it becomes mandatory. You have the ability to opt out before your final tax return and complete the 2025/26 tax return in your normal manner.

Find the right software for you:

Use the time left before mandation to explore different HMRC-recognsed MTD IT software. Many software providers, including TaxNav, are letting you trial software for free before the end of the 2025/6 tax year.

How TaxNav supports landlord compliance

TaxNav is designed for self-employed individuals and landlords who want to manage their tax records simply and confidently.

TaxNav helps you:

  • Keep your records MTD IT-compliant whilst giving you control over how you work
  • Submit quarterly updates simply and securely to HMRC
  • Track your estimated tax bill as the year progresses
  • Streamline the final annual declaration process

For spreadsheet users:

If spreadsheets are already part of your property accounting routine, TaxNav integrates seamlessly so you can maintain that familiar workflow. The platform also includes a mobile app for recording income and expenses as you go.

Special offer:

For the remainder of the 2025/26 tax year, TaxNav is free to use. This gives you practical experience with MTD IT before it becomes compulsory. You are not required to complete quarterly returns that have already passed their submission date, just complete the remaining one or two.

Taking action on MTD IT

April 2026 is not far away. Now is the time to review your current accounting setup and confirm you have MTD IT-recognised software in place.

Whether you manage one property or several, the transition to digital quarterly reporting requires preparation. Having the right software ready means you can approach MTD IT with confidence rather than concern.

Find out more about TaxNav and get your property accounting ready for Making Tax Digital for Income Tax.

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