Making Tax Digital for Income Tax changes how landlords and sole traders deal with HMRC. Instead of gathering everything once a year, you keep your records in software and send short updates through the year. That makes the software you pick matter more than it used to. A poor fit can cost you time, money and a lot of stress. The good news is that you don’t have to pay for the basics. This guide covers free options for landlords, what each one does, and what to check before you commit.
Do I Need MTD Software This Year?
Maybe. It depends on your qualifying income. That is your total income from self-employment and property, before you take off expenses. HMRC checks your 2024 to 2025 tax return to see if you must start now.
Start date | Qualifying income | Tax year HMRC checks |
|---|---|---|
06/04/2026 | Over £50,000 | 2024 to 2025 |
06/04/2027 | Over £30,000 | 2025 to 2026 |
06/04/2028 | Over £20,000 | 2026 to 2027 |
Some income does not count towards the limit. That includes wages, pensions and dividends. For a jointly owned property, only your share counts. If you live in the UK, foreign property income counts too.
HMRC said it would start signing up eligible people itself from September 2026. If you haven't received a letter, it is still your job to check. You can use HMRC's online checker.
What Must MTD Software Do?
Your software must do three things:
Keep digital records of your income and expenses.
Send HMRC a quarterly update.
Send your Final Declaration. This is your year-end tax return.
There are two types. Some products create your records for you. Others connect to the spreadsheets you already use. Both can work. Just check that your choice covers all three jobs.
How to Choose Free MTD Software
HMRC suggests you check these points before you commit:
It supports all your income sources, such as UK property, foreign property and self-employment.
It can send your Final Declaration, not just quarterly updates.
It lets you report your other income, such as savings interest and dividends.
It works with your accounting period.
It works with your accountant, if you have one.
The free plan has no limit that will catch you out, such as a cap on transactions.
You can use more than one product. But each submission to HMRC must come from one product only. For example, you cannot split your property quarterly updates across two products.
The Best Free MTD Software for Landlords in 2026
RentalBux
RentalBux is built for landlords who want property management and MTD in one place. It covers UK property, foreign property and self-employment. That helps if you let property and also run a small business.
Feature | Details |
|---|---|
Best for | Landlords with buy-to-let, HMO or commercial property, and sole traders |
Income types | UK property, foreign property and self-employment |
Cost | Free for landlords with one property unit until March 2028. Free until 15/11/2026 for individuals and joint owners with 1 to 3 properties, sole traders, freelancers and landlords with a side business. Check the pricing page for plans after those dates |
Mobile app | iOS and Android |
Submissions | Quarterly updates sent to HMRC |
What it does:
Keeps digital records of rent, expenses and self-employment income.
Links to your bank through Open Banking to bring in transactions.
Builds your quarterly reports in a few clicks.
Tracks income and costs for each property.
Creates invoices and stores your documents.
Start free with RentalBux or read more at RentalBux.
Coconut
Coconut is a mobile-first app for invoices, expenses and tax. It suits sole traders and landlords who like to do their admin on a phone.
Feature | Details |
|---|---|
Best for | Sole traders and landlords |
Income types | Self-employment, UK property and foreign property |
Cost | Free version for some customers. Paid plans also exist. Check Coconut's site for who qualifies |
Mobile app | Yes |
What it does:
Sends quarterly updates and supports your Final Declaration.
Connects to your bank through Open Banking.
Sorts transactions into categories and points out allowable expenses.
Lets you snap photos of receipts.
Shows a running tax estimate.
Gives your accountant their own login.
Clear Books Free
Clear Books Free is the no-cost version of Clear Books accounting software. It suits sole traders and small property businesses that want the basics.
Feature | Details |
|---|---|
Best for | Sole traders, small businesses and small property investors |
Income types | Self-employment and UK property |
Cost | Free version. Check its limits before you rely on it |
Mobile app | Limited compared with the paid plan |
What it does:
Keeps digital records of income and expenses.
Sends quarterly updates to HMRC.
Imports transactions from your bank.
Supports your Final Declaration at the end of the year.
Includes basic reports.
FreeAgent
FreeAgent is a cloud accounting software made for small businesses. Some business banks give it to their customers for free. Check FreeAgent's website for the current list.
Feature | Details |
|---|---|
Best for | Sole traders, freelancers and small businesses |
Income types | Self-employment and UK property |
Cost | Free through some bank partners. Paid plans for everyone else |
Mobile app | iOS and Android |
What it does:
Sends quarterly updates and supports your Final Declaration.
Syncs with most UK banks through Open Banking.
Pulls details from photos of receipts.
Shows what tax you owe and when it is due.
Offers VAT and payroll tools if your business grows.
PaTMa Property Manager
PaTMa Property Manager is made for UK landlords. It keeps tenancy records, accounts and MTD in one place. It covers UK property only, so it will not suit you if you have foreign property or a side business.
Feature | Details |
|---|---|
Best for | Landlords, small property investors and first-time landlords |
Income types | UK property |
Cost | Free plan for one property. Check the limits on PaTMa's site |
Mobile app | Not stated by the provider |
What it does:
Records rent and expenses without double-entry bookkeeping.
Links to your bank through Open Banking.
Sends quarterly updates.
Tracks tenancy details and maintenance.
Sends reminders for landlord duties.
Builds property tax reports from your records.
QuickFile
QuickFile gives self-employed people and landlords a free route into MTD, as long as you stay under its entry limit. The limit is 1,000 ledger entries. Check QuickFile's site for the current figure.
Feature | Details |
|---|---|
Best for | Sole traders, freelancers and small landlords |
Income types | Self-employment and UK property |
Cost | Free up to a set number of ledger entries |
Mobile app | iOS and Android |
What it does:
Keeps digital records and sorts them into categories.
Sends quarterly updates to HMRC.
Supports your Final Declaration, including other income.
Handles year-end adjustments.
Connects to your bank accounts.
TaxNav
TaxNav runs in your web browser, so there is nothing to install. It guides you step by step, which helps if you are not an accountant.
Feature | Details |
|---|---|
Best for | Self-employed people, landlords and tax agents |
Income types | Self-employment, UK property and foreign property |
Cost | Free version. Check TaxNav's site for current terms and limits |
Mobile app | No app. Works in a browser on any device |
What it does:
Keeps your records and sends quarterly updates.
Supports your Final Declaration.
Walks you through each submission.
Lets you view and download all your income and expense transactions.
Free MTD Software Compared
Software | Income types | Submission types | App |
|---|---|---|---|
RentalBux | Self-employment, UK property, foreign property | Quarterly updates. Final Declaration will be available shortly. | iOS and Android |
Coconut | Self-employment, UK property, foreign property | Quarterly updates and Final Declaration | Android |
Clear Books Free | Self-employment, UK property | Quarterly updates and Final Declaration | iOS and Android |
FreeAgent | Self-employment, UK property | Quarterly updates and Final Declaration | iOS and Android |
PaTMa Property Manager | UK property | Quarterly updates | Android |
QuickFile | Self-employment, UK property | Quarterly updates and Final Declaration | iOS and Android |
TaxNav | Self-employment, UK property, foreign property | Quarterly updates and Final Declaration | Browser only |
These details come from the providers and they change often. Confirm each line on HMRC's software finder before you choose.
Conclusion
Free MTD software can keep your costs down. But free does not mean the same thing everywhere. Some plans cap your transactions. Some cover one property only. Some leave out the Final Declaration. So start with your income sources, then check the limits. Use HMRC's software finder to confirm a product is recognised before you sign up. MTD for Income Tax is no longer on the way. It has started, and the limit drops to £30,000 on 6 April 2027. If you are near a threshold, choosing software now saves a rush later.
