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) has been in force since April 2026, and your software choice determines how smoothly you meet your 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 determines who needs to join based on the 2024/25 Self Assessment return submitted by 31 January 2026, and has been 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 has removed the 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

In this first year of MTD IT, you won't be penalised for late or incorrect quarterly updates, 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.

If you work with an accountant:

They'll need appropriate digital authorisation to submit updates on your behalf. Have those conversations as soon as possible to ensure everything is in place.

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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.

How to get MTD-IT ready

If you haven't started yet, don't panic. Focus on these basics as, once those are in place, everything else follows naturally.

  • Confirm if your gross income will trigger the MTD IT rules with HMRC's page
  • Register with HMRC for MTD IT before you begin.
  • Select your software - TaxNav offers a 30-day free trial
  • Start keeping and recording your digital records - for example, directly into our software or in a spreadsheet using our bridging software. Until your final return, this does not need to be 100% accurate.
  • Diarise when you need to submit your quarterly updates, TaxNav will remind you.
  • Diarise your final (annual) declaration deadline.

People with income over £30,000 from self-employment and/or property will need to join MTD IT from April 2027. You can, however, volunteer to join early and get familiar with it before your HMRC deadline.

With TaxNav you automatically get a 30-day free trial and we offer low-cost subscriptions to keep things affordable. An annual subscription is £60+VAT or pay as you go for £6+VAT per month.


Explore and try out our user-friendly MTD IT software

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