Making Tax Digital (MTD) is an ambitious initiative by HMRC to modernise tax reporting in the UK. The goal is simple yet significant: to transition away from traditional paper-based tax returns and manual spreadsheets and instead require individuals and businesses to maintain digital records and submit key tax information directly through HMRC-recognised software.
MTD is being rolled out in phases. For example, MTD for VAT has been in place since 2019 for VAT-registered businesses above the threshold. For Income Tax, the scheme now applies to self-employed individuals and landlords with an annual income above £50,000, with deadlines approaching. Under MTD for Income Tax, these taxpayers must keep digital records, submit Quarterly updates to HMRC via MTD-recognised software and ensure all income types are captured accurately.
Naturally, these processes lead landlords to a question like “Do I really need an MTD compliant software that is recognised, and can I use it for free?”
The simple answer is yes.
RentalBux – The Ultimate Free MTD Software for Landlords and Sole Traders
Type: Freemium
Focus: Property Management + Accounting
HMRC-Recognised
Rental Bux is widely regarded as the most comprehensive HMRC-approved MTD software for landlords and property investors in the UK. Unlike generic accounting platforms, Rental Bux is built specifically for landlords and sole traders — combining property management, accounting, and full MTD compliance in one seamless platform.
Whether you have a single property or a large portfolio, Rental Bux gives you the tools to manage everything from tenancy details and rent collection to bookkeeping, profit sharing, and tax submissions.
Key Features and Benefits
Covers All MTD-Mandated Incomes
RentalBux supports every type of income required under Making Tax Digital:
UK property income
Foreign property income
Self-employment income
This ensures that landlords and sole traders can fully comply with HMRC regulations without having to juggle multiple tools.
Absolutely Free for Single Property Landlords Until March 2028
Landlords with one property or sole traders with a single business can access full MTD functionality at no cost, making it one of the most accessible and affordable solutions on the market.
Full-Scale Accounting Capabilities
RentalBux offers a complete accounting suite, including:
Invoicing & recurring invoices
Bank feeds & automated reconciliations
Purchase and expense tracking
Pre-built chart of accounts tailored for property and self-employment businesses
Advanced Property Management Tools
Unlike generic accounting software, RentalBux integrates property-centric features, such as:
Tenancy management and rent collection
Property details capture (mortgage, maintenance, etc.)
Management of multiple portfolios with complex ownership structures, including joint ownership and varied profit-sharing ratios among family members
AI-Powered Automation (Coming Soon)
RentalBux is developing AI-driven tools to save landlords time and reduce errors, including:
Auto-categorisation of expenses
OCR bill capture for instant invoice processing
Smart suggestions for financial management
Built by Accountants for Landlords and Sole Traders
Every feature in RentalBux is designed by experts who understand the real-world challenges of landlords and sole traders, ensuring that workflows are practical, accurate, and intuitive.
HMRC-Approved for Making Tax Digital
RentalBux is fully recognised by HMRC for MTD for Income Tax, allowing automated submissions, error-free reporting, and full compliance with the latest tax regulations.
Property-Centric Accounting With Joint Ownership Support
Every feature revolves around your property portfolio. Track income and expenses per property, log mortgage details, manage multiple tenants, and even handle complex joint ownership arrangements (husband/wife, family members, numerous profit-sharing ratios). The software is designed to handle multiple owners, multiple properties, and complex profit-sharing arrangements, making it a true specialist tool for the property sector.
Pre-Built Chart of Accounts
Rental Bux comes with a pre-configured chart of accounts tailored to landlords and self-employed users. This saves time during setup and ensures all categories align with HMRC requirements and real-world property management needs.
Time-Saving Automation
From recurring invoicing to automated bank feeds and reconciliations, RentalBux significantly reduces manual work, enabling landlords and sole traders to focus on growing their businesses rather than managing paperwork.
User-Friendly for Non-Accountants
Despite its professional-grade features, RentalBux is simple to use, with guided workflows, clear dashboards, and an intuitive interface that makes property accounting accessible to anyone — no accounting or tax background required.
Why RentalBux Stands Out
All-in-one solution: Combines property management, accounting, and MTD compliance in one platform.
Tailored for landlords: Handles every landlord scenario, from joint ownership to multiple profit-sharing ratios.
Affordable & scalable: Free for single-property landlords until 2028, with paid upgrades for larger portfolios.
Accountant-backed: Developed by professionals who specialise in property and sole trader accounting.
Future-ready: AI features coming soon to automate bookkeeping and expense management further.
Pricing and Free Plan
Free Plan: Available for landlords with one property until March 2028, offering full access to core accounting and property management features
Paid Plans: Unlock advanced features for multiple properties, AI tools, and enhanced automation
Value Proposition: One of the cheapest and most feature-rich MTD software solutions on the market
Unlike other platforms, the free plan for a single property has no hidden limitations, making it an exceptional choice for new or small-scale landlords.
Pros and Cons
End-to-end property management + accounting
Handles complex ownership structures & profit sharing
Fully MTD-compliant for property income & self-employment
Pre-built chart of accounts tailored to landlords
Time-saving automation & AI features
Free plan is fully functional for one property
Ideal For
Rental Bux is perfect for:
Landlords with single or multiple properties
Property investors needing end-to-end management
Sole traders with self-employment income
Anyone seeking full MTD compliance without juggling multiple systems
Verdict
For UK landlords in 2025/26, Rental Bux is the ultimate MTD solution. It combines professional accounting, comprehensive property management, and HMRC compliance in a single, easy-to-use platform.
Whether you’re just starting with one property or managing a multi-unit portfolio, Rental Bux ensures you:
Stay fully compliant with MTD rules
Save time with automation and AI tools
Manage properties, tenants, and finances in one central system
If you’re serious about property investment and want the best software tailored specifically for landlords, Rental Bux stands unmatched.
Bottom line
If you’re a UK landlord or sole trader seeking accuracy, compliance, and efficiency, RentalBux is the ultimate choice. It’s not just software — it’s a complete property business management platform that grows with you.
PaTMa – Property and Tax Management Assistant
Type: Freemium
Focus: Property Management + MTD Accounting
MTD Recognised
When it comes to bridging the gap between property management and Making Tax Digital (MTD) compliance, PaTMa (short for Property and Tax Management Assistant) stands out as one of the most practical solutions available to UK landlords. It’s designed for individuals who want to stay compliant with HMRC’s digital reporting rules without sacrificing control over their property data.
PaTMa enables landlords to track tenancies, manage property income, and maintain digital records of all property-related expenses — all of which HMRC will soon require under MTD for Income Tax (ITSA). It offers a unique blend of portfolio management and digital bookkeeping, making it especially useful for landlords who want both financial accuracy and operational oversight in one place.
Key Features
MTD-Ready Accounting System PaTMa is fully compliant with HMRC’s MTD standards, allowing landlords to maintain digital records and submit quarterly summaries in the correct format. It ensures your property income and expense records stay aligned with HMRC’s evolving reporting framework.
Property and Tenancy Management You can record every detail of your property portfolio — tenancy dates, rent schedules, deposit details, and even tenant information — giving you a clear overview of cash flow and occupancy.
Expense Tracking and Categorisation PaTMa simplifies bookkeeping by allowing you to categorise expenses (such as repairs, insurance, maintenance, and mortgage interest) for each property individually. This makes tax preparation and quarterly MTD submissions straightforward.
Integrated Market Insights Beyond accounting, PaTMa offers property analytics tools that help landlords assess potential investments by comparing yields, rental income, and property value growth — an edge not found in most MTD software.
Spreadsheet and Data Import Support If you’ve been using Excel or manual ledgers, PaTMa offers seamless importing, helping landlords transition smoothly into digital recordkeeping ahead of MTD deadlines.
Pricing and Free Plan
PaTMa operates on a freemium model.
The Free Plan covers a single property, with core MTD functionality and simple accounting tools.
The Pro Plan (paid) unlocks features such as advanced reporting, agent access, multi-property tracking, and more automation.
It’s one of the most cost-effective ways to comply with MTD while maintaining control over your property portfolio.
Pros and Cons
Pros:
Purpose-built for landlords, not generic accounting users Combines property management and MTD recordkeeping Provides property yield and cash flow analysis Seamless import from spreadsheets Clear and simple for small-scale landlords
Cons:
Free plan limited to one property and basic tools Interface can feel technical for non-accountants Lacks advanced automation such as bank feeds and AI expense capture
Ideal For
PaTMa is best suited for:
Landlords with small to medium portfolios who want to centralise property management and MTD accounting
DIY landlords transitioning from spreadsheets
Investors managing family-owned or jointly held properties looking for quick digital recordkeeping
Verdict
If you’re a landlord who prefers to oversee both property operations and digital tax compliance personally, PaTMa is one of the most balanced tools available. Its integration of property analytics, bookkeeping, and MTD reporting makes it a valuable solution for early adopters of MTD for Income Tax.
While its free plan has some limits, its focus on landlord-specific needs makes it far superior to generic accounting software for anyone managing property income.
Clear Books – Simple Accounting with MTD Integration
Type: Free (Essentials Plan)
Focus: Accounting + Tax Compliance
HMRC-Approved
Overview: Clear Books is a general accounting platform with full MTD support. While not specifically designed for landlords, it offers an easy-to-use system for tracking rental income, expenses, and submitting quarterly MTD updates.
For landlords and small property investors seeking a straightforward, UK-built accounting solution, Clear Books is a reliable and time-tested option. Designed by UK accountants, it focuses on compliance, simplicity, and ease of use — making it ideal for users preparing for the Making Tax Digital (MTD) for Income Tax rollout.
Clear Books has gained a loyal following among small businesses and landlords because it provides all the key functions of an accounting system — bookkeeping, VAT returns, invoicing, and financial reports — without the heavy complexity of global systems like Xero or QuickBooks.
Key Features
HMRC-Approved MTD Integration
HMRC officially recognises Clear Books as a fully MTD-compatible software for both VAT and Income Tax. It ensures that all digital records are compliant and that submissions are transmitted directly to HMRC through a secure API connection.
Simple Accounting Dashboard
The platform’s layout is intentionally minimal — designed to make accounting tasks intuitive for non-specialists. You can easily record rental income, categorise expenses, and track bank transactions all in one place.
Invoicing and Payment Tracking
Landlords renting out commercial properties or managing service charges can create professional invoices, send them to tenants, and track payments directly within the system.
Bank Feeds and Reconciliation
You can connect your business bank account to import transactions automatically. The built-in reconciliation tool helps match receipts and payments quickly, ensuring your accounts remain accurate and up-to-date.
Reporting and Tax Summaries
Clear Books provides detailed financial reports, including income statements, cash flow statements, and balance sheets, that can be exported for analysis or supplied to your accountant for review. This makes year-end tax reporting much smoother under MTD.
Pricing and Free Plan
Clear Books offers a 30-day free trial, after which subscriptions are available in tiers:
Small Plan – Basic bookkeeping and MTD VAT submissions
Medium Plan – Adds invoicing, reporting, and multi-user access
Large Plan – Includes advanced automation, analytics, and payroll
Although not entirely free in the long term, the software remains one of the more affordable professional-grade MTD solutions, especially for UK-based users.
Pros and Cons
Pros:
HMRC-recognised for both VAT and Income Tax
Designed and supported in the UK
Clean, simple dashboard suitable for non-accountants
Offers essential landlord features like invoicing and expense tracking
Good value compared to global competitors
Cons:
No built-in property management tools (like tenant or mortgage tracking)
Limited customisation compared to Xero or QuickBooks
Some automation features are only in higher-tier plans
Ideal For
Clear Books is best for:
Individual landlords managing a few rental properties
Self-employed professionals who also have property income
Small-scale investors who want MTD compliance with minimal setup
Users who prefer a UK-based support team and local accounting standards
Verdict
Clear Books offers one of the most balanced and dependable accounting systems for UK landlords preparing for MTD. It might not have flashy property management tools, but it excels at what matters most — keeping your tax records compliant, accurate, and organised.
For anyone transitioning from spreadsheets or manual bookkeeping, Clear Books provides an easy, affordable, and UK-focused way to stay ahead of the MTD curve.
QuickFile – DIY MTD Accounting for Tech-Savvy Landlords
Type: Free (for small accounts)
Focus: Bookkeeping + MTD Filing
HMRC-Recognised
For landlords who prefer a more hands-on, do-it-yourself approach to accounting and tax management, QuickFile is one of the most flexible and cost-effective options available. Designed for digital-first users, it offers an open and powerful interface for tracking income, expenses, and tax, with direct HMRC MTD integration for VAT and Income Tax.
Unlike many commercial systems that prioritise simplicity at the expense of control, QuickFile provides users with a deep level of visibility and customisation — perfect for those who want to manage their property finances in detail without incurring premium subscription costs.
Key Features
HMRC-Recognised MTD Compliance
QuickFile has long been recognised by HMRC as MTD-compatible software for VAT submissions and is now rolling out MTD for Income Tax features. You can connect your QuickFile account directly to HMRC’s digital tax system to file quarterly updates securely.
Full Accounting Suite
It covers everything a landlord might need: income and expense tracking, bank reconciliations, VAT returns, and financial reports. You can manage multiple income types — including rental income, self-employment earnings, and other business streams — all under one dashboard.
Cloud-Based & Bank-Integrated
QuickFile automatically imports transactions from linked bank accounts, credit cards, or payment processors (like PayPal). It makes it easy to match your rental income and expenses, ensuring accuracy for MTD submissions.
Multi-Property Record Management
While not as property-centric as Rental Bux, QuickFile allows you to create custom project tags or ledgers for each property. This means you can track income, mortgage interest, maintenance costs, and utility expenses for each property separately — useful for landlords managing multiple units.
Receipt & Document Management
QuickFile includes a “Receipt Hub,” where you can upload receipts or invoices by email or mobile photo. It extracts details automatically using OCR (Optical Character Recognition), thereby reducing the need for manual data entry.
Reporting and Analytics
Generate profit-and-loss statements, balance sheets, and tax summaries with a few clicks. The reporting tools are highly customisable — ideal for landlords who like to keep detailed financial breakdowns or share reports with their accountant.
Pricing and Free Plan
Free Plan: Available for smaller users (up to ~1,000 ledger entries per year)
Power User Subscription: Approx. £54 + VAT per year, required for larger usage volumes or enhanced features
Optional MTD VAT Bridging Module and ITSA modules available for a low additional cost
Even the paid tier remains one of the cheapest MTD-compatible accounting tools in the UK — ideal for budget-conscious landlords.
Pros and Cons
Pros:
Free for most small landlords (depending on usage volume)
HMRC-recognised for MTD VAT and Income Tax
Flexible and highly customisable for power users
Cloud-based with bank feed integration
Excellent document and receipt management tools
Affordable even for larger portfolios
Cons:
Interface may feel technical or outdated compared to newer apps
No dedicated property management features (like tenancy or mortgage tracking)
Limited customer support (mainly community forum-based)
Ideal For
QuickFile is best suited for:
Tech-savvy landlords who enjoy DIY bookkeeping
Cost-conscious property investors seeking free or low-cost MTD compliance
Landlords managing multiple income sources (property + self-employment)
Users comfortable with a light technical setup or configuration
Verdict
QuickFile is one of the most cost-effective and flexible MTD solutions for landlords in the 2025/26 tax year. While it lacks built-in property management tools, its powerful accounting engine, customisation options, and MTD compliance make it an excellent choice for confident, hands-on landlords who want total control without breaking the bank.
Suppose you’re comfortable with tech and prefer a “DIY accountant” approach. In that case, QuickFile can handle everything from quarterly MTD updates to full financial reports — for free or at a very low annual cost.
Landlord Studio – Mobile-First Property Management with MTD Readiness
Type: Freemium
Focus: Property Management & Accounting
HMRC-Recognised: (via MTD-compliant integration)
Landlord Studio is one of the most popular tools among UK landlords seeking a simple, mobile-first way to manage their rental business while staying compliant with tax regulations. Unlike many traditional accounting platforms that adapt for landlords, Landlord Studio is built specifically for property owners — blending property management, bookkeeping, and MTD readiness into one intuitive platform.
It’s designed for busy landlords who manage their own properties, often on the go. Whether you’re collecting rent, logging expenses, or checking tenancy details, Landlord Studio’s clean mobile app lets you manage it all directly from your phone — with full syncing to your desktop dashboard.
Key Features
Property-Centric Accounting
Every feature in Landlord Studio revolves around your properties. You can track income and expenses per property, record mortgage details, assign tenants, and generate performance reports at both property and portfolio levels.
Rent Tracking and Automation
Easily track rent payments, deposits, and arrears. The system automatically calculates what’s owed, sends reminders, and logs incoming payments — helping you maintain a clear overview of tenant performance and cash flow.
Expense Tracking with Receipt Scanning
Snap a photo of any expense using the mobile app, and Landlord Studio automatically reads and categorises it using OCR (optical character recognition). This ensures accurate bookkeeping without manual data entry.
MTD-Ready Reporting Although Landlord Studio itself doesn’t directly file MTD returns, it’s designed to integrate with HMRC-approved software or export reports in an MTD-compatible format. In practice, this means landlords can track and prepare all quarterly figures inside Landlord Studio, then easily upload or share data with their accountant or bridging software for HMRC submission.
Real-Time Insights and Performance Dashboards
Landlord Studio goes beyond compliance — it offers detailed performance tracking. You can view cash flow summaries, profit & loss reports, and yield analysis, helping you understand exactly how each property is performing financially.
Cloud Sync and Multi-Device Access
All data is automatically backed up and synced between devices. You can start updating rent records on your phone and continue managing accounts on your desktop with seamless continuity.
Pricing and Free Plan
Free Tier: Manage up to 3 properties, track expenses, and generate basic reports
Pro Plan: Starts from around £10/month, adding unlimited properties, advanced reporting, and integrations
MTD bridging integration: Available via export or direct accountant handoff
This tiered pricing makes Landlord Studio accessible to both small landlords testing MTD tools and professional investors managing larger portfolios.
Pros and Cons
Pros:
Purpose-built for landlords — not generic accounting software
Mobile-first design with excellent app experience
Easy rent tracking, reminders, and tenant management
Expense tracking with receipt scanning
MTD-ready via integration/export
Affordable and scalable
Cons:
Doesn’t directly submit MTD updates (requires bridging or accountant export)
Not suitable for complex business structures (LLPs or corporate SPVs)
Fewer advanced accounting features than systems like Xero or Rental Bux
Ideal For
Landlord Studio is best suited for:
Individual landlords with small to medium-sized portfolios
Hands-on investors who want a simple, mobile solution
Landlords preparing for MTD but not yet required to file directly
Users seeking property management + accounting in one tool
Verdict
Landlord Studio is a brilliant solution for landlords who prioritise convenience, clarity, and mobility. It covers nearly everything from tenant management to expense tracking — while keeping MTD preparation straightforward and stress-free.
Although it doesn’t file MTD updates directly, its clean interface, robust mobile functionality, and export options make it one of the best all-in-one tools for landlords who want to stay digitally organised ahead of the 2026 MTD deadlines.
If you're looking for a lightweight yet powerful tool that feels tailored to the day-to-day realities of property ownership, Landlord Studio is an excellent choice.
Conclusion: Choosing the Best Free MTD Software for UK Landlords in 2025/26
With Making Tax Digital (MTD) for Income Tax now fully in effect, UK landlords and property investors need reliable, HMRC-approved software to ensure compliance. The right choice depends on your portfolio size, accounting experience, and the level of hands-on involvement you prefer in property management.
Rental Bux stands out as the all-in-one solution, offering end-to-end property management, comprehensive accounting features, joint ownership support, and full MTD compliance. Its free plan for a single property provides unmatched value, making it ideal for both new and experienced landlords. PaTMa is well-suited for small landlords or those transitioning from spreadsheets, offering solid property management features and MTD-ready reporting. Clear Books offers straightforward, UK-based accounting services for single-property landlords or self-employed investors, ensuring compliance without the need for complex property management tools.
FreeAgent is a strong option for landlords with partner bank accounts such as NatWest, RBS, or Mettle, offering a mobile-friendly and easy-to-use accounting solution that works well for managing both self-employed income and property income. QuickFile appeals to tech-savvy landlords who prefer a do-it-yourself approach, offering flexibility, MTD readiness, and affordability; however, it lacks features for managing tenancy and mortgages. Landlord Studio provides a mobile-first property management experience with basic accounting and MTD export capabilities, ideal for hands-on landlords with small to medium-sized portfolios.
Ultimately, choosing the right MTD software can save time, reduce errors, and simplify compliance with HMRC’s digital reporting rules. Whether you prefer the full functionality of Rental Bux, the DIY flexibility of QuickFile, or the mobile convenience of Landlord Studio and FreeAgent, there is a tool that fits every landlord’s needs. Understanding the strengths and limitations of each platform enables landlords and property investors to manage their finances with confidence, making MTD reporting easier and stress-free in 2025/26.