MTD Compatible Software: 21 HMRC-Recognised Options for Landlords and Sole Traders

Do You Need MTD for Income Tax Software?

MTD for Income Tax has been mandatory since 6 April 2026 for sole traders and landlords with qualifying income over £50,000. The threshold drops over the next two years.

Qualifying income is your total gross income from self-employment and property, before expenses. Wages, pensions and dividends do not count. For jointly owned property, only your share counts. If you live in the UK, foreign property income counts too.

HMRC began signing up eligible people itself from September 2026. If you did not get a letter, it is still your job to check. Use HMRC's online checker.

What Does MTD Software Need to Do?

Your software must do three things:

1. Keep digital records of your income and expenses.

2. Send HMRC a quarterly update.

3. Submit your tax return (also called the Final Declaration).

There are two types of software. Some create your records for you. Others connect to the spreadsheets you already use. These are called bridging software. Both can work for MTD. You can use more than one product, but each submission must come from a single product.

HMRC suggests you check these points before you choose:

• It supports all your income sources (self-employment, UK property, foreign property).

• It can submit your tax return, 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.

Quarterly Deadlines

Most landlords and sole traders use standard update periods.

Each update covers the whole tax year so far. Your tax return is due by 31 January after the tax year ends. For 2026 to 2027, HMRC will not add penalty points for late quarterly updates. Points still apply to a late tax return.

The 21 HMRC-recognised options

Pricing and features below were checked on the providers' websites. They may have changed. Check with the provider before you sign up. HMRC does not publish prices, free-plan terms or feature lists.

RentalBux

RentalBux is HMRC recognised for MTD for Income Tax across UK property, foreign property and self-employment. It combines property management, bookkeeping and MTD in one platform.

What it does: Keeps digital records of rent, expenses and self-employment income. Links to your bank through Open Banking for real-time transaction imports. Builds quarterly reports in a few clicks. Tracks income and costs per property across your portfolio. Creates invoices and stores documents. Self-assessment accounts are pre-mapped to HMRC SA boxes, so your figures auto-populate without manual configuration. Handles joint ownership with automatic profit splits. Covers Buy-to-Let, HMO and commercial properties.

Start free with RentalBux or book a demo.

123 Sheets

123 Sheets is HMRC-recognised bridging software for Income Tax and VAT. It connects your existing spreadsheets to HMRC without changing your workflow. Compatible with Excel 1997 through the latest versions. It has a dedicated agent version for accountants managing multiple clients. Useful if you already track your income in spreadsheets and want the simplest path to compliance.

Coconut

Coconut is a mobile-first invoicing and expense platform with MTD compliance. It connects to your bank through Open Banking, automatically sorts transactions into categories, and flags allowable expenses. It captures receipt photos, shows a running tax estimate throughout the year, and gives your accountant their own login for real-time data sharing. Suits freelancers and landlords who want to manage their tax from their phone.

Absolute Excel Income Tax Filer

Absolute Excel Income Tax Filer is bridging software that files income tax from your existing Excel spreadsheets. Compatible with Excel 2010 and later, plus Mac from Excel 2016. It has an agent version for accountants and a knowledge base tool for fixing rejected returns. A straightforward option if you want to keep Excel and just need the HMRC connection.

Andica

Andica is desktop bookkeeping software for small businesses. It tracks income and expenses in real time, processes invoices, and automatically categorises bank transactions. It supports quarterly submissions for self-employment and property. A simpler option for landlords and sole traders who prefer installed software over cloud apps.

ApariPro

ApariPro is self-assessment software that creates digital records and bridges them to HMRC. It supports quarterly updates and tax return filing. It has a per-client pricing model for accountants and tax agents. Handles self-employment and UK property income in one place.

Capium

Capium is cloud-based practice management software for accountants. It connects to most UK banks via TrueLayer, syncs data across all its modules (bookkeeping, payroll, tax), and supports CSV imports from other software. Primarily aimed at accounting practices rather than individual landlords. Covers self-employment, UK property and foreign property.

Clear Books

Clear Books is online accounting software for small businesses. It supports MTD for Income Tax and VAT, with CIS compliance, multi-currency handling, and integrated payroll. It tracks profit and loss, dividends, and financial reporting. Suits sole traders and small landlords who also need invoicing and business accounting.

Clear Books Free

Clear Books Free is the no-cost version of Clear Books. It covers the basics: digital record keeping, quarterly updates, tax return filing and bank integration. It has the same security as the paid version. Check what limits apply before relying on it for your main records.

Forbes MTD

Forbes MTD provides bridging software and bookkeeping tools for businesses using Excel, Sage, VT Transaction+ or other packages. It offers solutions ranging from simple smartphone apps to full bookkeeping software. Supports self-employment, UK property and foreign property. Useful if you already use another accounting package and need a bridge to HMRC.

FreeAgent

FreeAgent is cloud-based accounting software for small businesses. It is HMRC-recognised for MTD for Income Tax. It covers invoicing, expenses, payroll, and project management. It connects to most UK banks through Open Banking. It has an AI-powered tool that extracts data from receipts and categorises transactions. It shows a running tax timeline so you know what you owe and when. Free for customers of some UK business banks.

Hammock

Hammock is HMRC-recognised software built specifically for landlords and property investors. It reconciles rental payments and property expenses automatically, connects to unlimited bank feeds, and handles individual, joint ownership, partnerships and limited companies with automatic percentage allocation. It sends profit and loss reports per property and at portfolio level. Sends reminders for MTD deadlines and certificate expiry dates.

Intuit QuickBooks

Intuit QuickBooks is a cloud-based accounting platform for sole traders and small businesses. It supports MTD for Income Tax with quarterly updates and tax return filing. It has AI-powered receipt capture that categorises transactions automatically, handles multiple income sources in one platform, includes payroll with RTI submissions, and shows live tax estimates. Connects to most UK banks.

MYT

MYT is AI-powered accounting software aimed at small and micro businesses like builders, plumbers, electricians and freelancers. It automates expense categorisation from receipt photos, tracks mileage with GPS, handles multi-currency transactions, and has CIS support for construction workers. Covers self-employment, UK property and foreign property.

Nomi

Nomi is cloud-based accounting software designed for accountants and bookkeepers. All its modules sync in real time to cut out duplicate data entry. It has OCR receipt scanning, daily bank transaction imports from 20+ UK banks, and a multi-client agent hub. It also includes CRM and client onboarding tools.

Note: Nomi's listing describes "readiness" for MTD for Income Tax. Confirm on HMRC's software finder that it is fully recognised before relying on it.

PaTMa Property Manager

PaTMa Property Manager is landlord-focused software that combines rental management, accounting and MTD in one place. It skips double-entry bookkeeping and lets you record money in and money out. It connects to your bank through Open Banking, sends reminders for landlord duties, and generates tax reports from your property records. Built for landlords who do not want a full accounting package.

QuickFile

QuickFile is accounting software for small businesses, freelancers and landlords. It supports MTD for Income Tax with quarterly updates and tax return filing, including other income sources and year-end adjustments. It categorises transactions automatically and connects to your bank. Free up to a set number of ledger entries, with a paid plan after that.

Self Assessment Direct

Self Assessment Direct is free software for sole traders, landlords and small business owners. It creates digital records and bridges them to HMRC. It handles self-employment, UK property and foreign property income. It supports quarterly updates and tax return filing. A no-cost option worth checking if budget is a concern.

TaxNav

TaxNav is HMRC-recognised software that runs entirely in your browser with nothing to install. It guides you step by step through each submission and removes fields that don't apply to you. A single licence covers both self-employment and property income. It lets you view and download all your income and expense transactions. Covers UK property, foreign property and self-employment.

Xero

Xero is one of the most widely used cloud accounting platforms in the UK. It is HMRC recognised for MTD for Income Tax and VAT. It connects to thousands of banks globally, has automatic bank reconciliation, handles multi-currency transactions, and integrates with hundreds of third-party apps through the Xero App Store. Includes Hubdoc for automatic receipt and bill capture.

Untied

Untied is HMRC-recognised end-to-end software for MTD for Income Tax. It takes a follow-the-money approach, recording transactions by date as default. It supports 100+ currencies and connects multiple income sources with intelligent tagging. It has an agent portal for accountants with real-time client access. Handles self-employment, UK property and foreign property income without needing separate licences.

HMRC-Recognised MTD Compatible Software Summary Table

Summary comparison table

These details come from the providers. Confirm each one on HMRC's software finder before you choose.

Conclusion

Choosing MTD software is as much a compliance decision as a commercial one. he right pick depends on your income sources, whether you need a full accounting package or just a bridge from your spreadsheets, and how much you are prepared to pay. Products that cover quarterly updates but not the tax return will leave a gap at year-end. Those that omit foreign property will not work if you let overseas. Pricing changes frequently, and free tiers come with strings attached. Run your shortlist through HMRC's software finder to confirm recognition, then test your top choice well before your first quarterly deadline.

The Autumn Budget 2026 (28 October 2026) confirmed three points relevant to this decision. First, the penalty soft-landing now extends to taxpayers joining MTD from April 2027, with no penalty points for late quarterly updates in 2027/28, although points will apply to those already mandated from April 2026. Second, property income tax rates will rise to 24% (basic), 44% (higher) and 49% (additional) from 6 April 2027, a four-percentage-point increase from current rates. Higher tax bills make accurate digital records more important than ever. Third, the government confirmed that MTD for Income Tax will be deferred for some taxpayer groups until further notice. Check GOV.UK for the latest position.