Xero and Landlord Studio are both HMRC-recognised for Making Tax Digital for Income Tax and both appear on the HMRC compatible software register. Beyond that shared status, they are built for different users, with different priorities, at different price points. This article sets out what each platform actually covers, where each falls short, and which client profile is best served by each product.
All claims are drawn from each provider's own published pricing and feature pages, the HMRC compatible software register, and HMRC's published guidance, all verified as at June 2026. Pricing is stated exclusive of VAT unless noted otherwise.
The MTD for Income Tax Mandate: What Landlords and Sole Traders Must Do
Making Tax Digital for Income Tax (MTD for IT) became mandatory on 6 April 2026 for sole traders and landlords whose combined qualifying income from self-employment and property exceeded £50,000 in the 2024 to 2025 tax year. The mandate extends to those with qualifying income above £30,000 from April 2027, and above £20,000 from April 2028. Source: HMRC guidance, gov.uk, updated 2 April 2026.
Qualifying income is gross income from self-employment and UK and foreign property combined, before deductions. Employment (PAYE) income, dividends, and capital gains do not count toward the threshold.
Under the mandate, qualifying taxpayers must:
Keep digital records of all business income and expenses using HMRC-recognised software.
Submit four quarterly updates to HMRC, due by 7 August, 7 November, 7 February, and 7 May each tax year.
File a Final Declaration by 31 January following the end of each tax year, replacing the legacy Self Assessment return.
Submit directly to HMRC via the MTD API. Bridging software via spreadsheet remains permitted but the digital record must be held in recognised software. HMRC has paused penalty points for late quarterly submissions during the 2026 to 2027 tax year. Financial penalties for a late Final Declaration apply from April 2026.
Xero and MTD: What The Platform Covers
HMRC Recognition and MTD Scope
Xero has been on HMRC's compatible software register for MTD for VAT since April 2019 and was recognised for MTD for Income Tax (ITSA) ahead of the April 2026 mandatory start. Every paid UK plan, namely Simple (£7/month), Ignite (£16), Grow (£37), Comprehensive (£50), and Ultimate (£65), supports the full MTD ITSA workflow, including digital records, quarterly updates, and the Final Declaration.
Income Types Covered
Xero covers all three qualifying income types for MTD ITSA, namely UK property, foreign property, and self-employment, within a single subscription. For landlords who also operate a sole-trade business, or who hold overseas rental property alongside UK property, this means a single platform can handle all qualifying income streams without a second MTD software subscription.
Multi-business MTD ITSA
Xero launched a multi-business MTD ITSA module in its 2025 public beta, allowing a single taxpayer with more than one sole-trade business or a combination of property and self-employment income to file separate quarterly updates for each income stream from within one account. HMRC requires a distinct quarterly update for each separate business source, so this capability is important for mixed-income clients.
MTD for VAT
Xero supports MTD for VAT across all paid UK plans. Standard, cash accounting, flat rate, and margin scheme VAT are all covered. Group VAT submissions require the Comprehensive or Ultimate plan. Landlord Studio has no VAT submission capability at any tier.
Accountant and agent filing
Xero Practice Manager and Xero HQ allow accountants and bookkeepers to manage a portfolio of MTD ITSA clients centrally and to submit quarterly updates on behalf of clients directly from within the practice tools. This is a centralised, purpose-built agent workflow that Landlord Studio addresses differently through its accountant partner programme.
What Xero does not cover
Xero has no property management features. It offers no tenancy management, tenant portal, property maintenance logging, compliance reminders, or landlord-specific lease tracking. Landlords who need these tools alongside MTD accounting must either use a second platform or accept that Xero is a pure accounting tool. Xero also has no permanent free plan; the lowest entry point is £7 per month.
Landlord Studio and MTD: What The Platform Covers
HMRC Recognition: Confirmed and Live
Landlord Studio was officially recognised by HMRC as Making Tax Digital compatible software on 30 March 2026, announced via a formal press release published on the Landlord Studio website. The platform confirmed that the new functionality enables UK landlords to submit quarterly updates directly through Landlord Studio's platform.
Unlike the factual uncertainty flagged in comparable Landlord Vision reviews, Landlord Studio's MTD ITSA submission capability is confirmed as live and available across all plans, including the free Go plan (at £5 per submission on Go), and at no additional cost on the Pro and Pro Plus plans.
MTD Income Scope
Landlord Studio's MTD ITSA recognition covers UK property income. Its FAQ page confirms that both foreign property income and furnished holiday lets count toward HMRC's qualifying income thresholds and that the platform allows landlords to record both UK and foreign property. However, the platform's own pages do not explicitly confirm that foreign property income can be submitted as a separate MTD ITSA stream directly from the platform. Landlords with overseas rental income who need to file a foreign property quarterly update should verify this directly with Landlord Studio before treating it as a confirmed capability.
Landlord Studio does not cover self-employment income for MTD purposes. Landlords who also operate a sole-trade business alongside their rental income will need a separate MTD software subscription to cover that income stream.
Joint and Co-ownership Structures
Landlord Studio natively supports joint ownership, partnerships, and limited company structures. Landlords can set up multiple owners on the same property, allocate income and expenses by ownership share, and submit separate MTD returns for each owner from a single Landlord Studio account. This is a meaningful practical advantage over Xero, where joint ownership requires manual tracking category splits and separate accounts per owner. Source: Landlord Studio MTD page FAQ, June 2026.
Property Management Features
Landlord Studio's distinguishing capability is the breadth of property management tools included across all plans, including the free Go tier:
Tenant portal available on all plans, allowing tenants to log maintenance requests and make payments.
Maintenance management and tenant maintenance requests on all plans.
Tenancy management, including property listings, application management, and screening, on all plans.
Smart receipt scanner using AI to extract dates and amounts from photographs, on all plans.
Mileage tracker on all plans.
Automated rent reminders, lease expiry reminders, and compliance reminders on Pro and above.
AI-assisted bookkeeping with automated transaction categorisation on Pro and above.
Bank feeds via Open Banking on Pro and above (up to 5 accounts on Pro, up to 20 on Pro Plus).
rental statement import on Pro Plus only.
Xero integration on Pro and Pro Plus.
Landlord Studio describes itself as built by landlords for landlords, and this is evident in the breadth of landlord-specific tooling. It is a significantly more feature-rich property management platform than anything Xero offers at any price point. Source: Landlord Studio pricing comparison table, June 2026.
Accounting Basis and Reporting
Landlord Studio uses cash basis accounting. It provides income and expense tracking, advanced reports (20-plus reports on Pro and Pro Plus), and tax-ready exports. It does not offer accruals basis accounting, a formal nominal ledger, trial balance, or balance sheet. Landlords whose accountant requires accruals basis records or formal management accounts will need to supplement Landlord Studio with Xero, which the platform facilitates through its native Xero integration on Pro and Pro Plus.
The Free Go Plan and MTD Costs
Landlord Studio's free Go plan supports up to 3 units and includes income and expense tracking, a smart receipt scanner, mileage tracking, tenant portal, maintenance management, and basic tenancy management. MTD submissions on the Go plan are charged at £5 per submission. With four quarterly updates and one Final Declaration per tax year, a landlord on the Go plan would pay £25 per year for MTD submissions. Bank feeds, AI-assisted bookkeeping, automated reminders, and Xero integration require the Pro plan at £12 per month (billed monthly) or £144 per year.
Accountant Partner Programme
Landlord Studio operates an accountant partner programme specifically designed to help accounting firms manage landlord clients through MTD. Accountants can access client accounts and support quarterly submissions. This is a different model from Xero Practice Manager, which provides a centralised multi-client dashboard for agents, but it does mean accountants working with Landlord Studio clients have a supported workflow.
Global Platform, UK MTD
Landlord Studio serves over 100,000 landlords worldwide across the UK, the US, Australia, and other markets. The MTD for Income Tax functionality is specific to the UK product. The platform has been a Propertymark Industry Supplier, reflecting its standing in the UK property sector.
Side-by-Side Comparison
The table below is based exclusively on each provider's own published pricing and feature pages and on HMRC's compatible software register, all current as at June 2026.
Feature | Xero | Landlord Studio |
|---|---|---|
HMRC MTD ITSA recognition | Yes, confirmed on HMRC compatible software register | Yes, confirmed 30 March 2026 (official press release from Landlord Studio) |
MTD VAT | Yes, all paid plans (since April 2019) | No |
UK property income | Yes, all paid plans | Yes, all plans including free Go plan |
Self-employment income | Yes, all paid plans | No (UK property income only for MTD) |
Foreign property income | Yes (UK-resident landlords) | Records foreign property; MTD submission scope not confirmed for foreign income |
Multi-business MTD ITSA | Yes, multi-business module (2025 public beta) | No |
Quarterly updates | Yes, direct HMRC API | Yes, direct HMRC API |
Final Declaration | Yes | Yes |
Agent filing | Yes, via Xero Practice Manager / Xero HQ | Yes, accountant partner programme; accountants can access client accounts |
Joint / co-ownership MTD | Yes, via tracking categories (manual split) | Yes, native support; separate MTD submissions per owner from one account |
Bank feeds (Open Banking) | Yes, all plans | Pro and Pro Plus plans only (not Go free plan) |
AI receipt scanner | Yes, via Hubdoc | Yes, Smart Scan on all plans including Go |
AI-assisted bookkeeping | No dedicated AI bookkeeping layer | Yes, Pro and Pro Plus plans |
Tenancy management | No | Yes, all plans (tenant portal, maintenance, applications, reminders) |
Property maintenance | No | Yes, all plans |
E-signatures | No | Yes (via integrations; not stated as built-in on pricing page) |
Xero integration | Native | Yes, Pro and Pro Plus plans |
Mobile app | Yes, iOS and Android | Yes, iOS and Android, mobile-first design |
Free plan | No permanent free plan | Yes, Go plan free for up to 3 units; MTD submissions charged at £5 per submission on Go |
MTD cost on paid plans | Included in all paid plans | Free on Pro and Pro Plus; £5 per submission on Go |
Entry-level paid price | £7 + VAT/month (Xero Simple) | £12/month (Pro, billed monthly); £144/year (Pro, billed annually, saving 20%) |
Global landlord use | UK focus | UK and international (US, Australia, and others) |
FCA connection | No FCA registration | Agent of Plaid Financial Ltd, FCA Reg. No. 804718, for Open Banking |
Accounting basis | Accruals and cash basis | Cash basis; no formal balance sheet, nominal ledger, or trial balance |
Prices exclude VAT. Always verify current pricing, feature availability, and HMRC recognition scope directly with each provider and on the HMRC compatible software register at tax.service.gov.uk before advising clients.
Pricing Comparison
Xero
Xero Simple at £7 per month (billed monthly) is the lowest entry point to a full HMRC-recognised MTD ITSA platform covering all income types. All quarterly updates and the Final Declaration are included at no extra cost on every paid plan. There is no permanent free plan. Annual billing discounts are available; check the Xero UK pricing page for current rates.
Landlord Studio
Landlord Studio's Go plan is free for up to 3 units, with MTD submissions charged at £5 per submission. The Pro plan is £12 per month billed monthly, or £144 per year (saving 20%), with MTD submissions included at no extra cost. The Pro Plus plan is £28 per month billed monthly, or £300 per year, also with MTD included. All plans start with 3 units; additional units are charged at £1 per unit per month beyond the base allowance. A 14-day free trial of the Pro plan is available with no credit card required.
For a landlord with a small portfolio who needs basic MTD compliance and property management at the lowest possible cost, Landlord Studio's Go plan at £25 per year in MTD submission costs (five submissions annually) is a materially cheaper entry point than Xero's £84 per year minimum. The trade-off is the absence of automated bank feeds, AI bookkeeping, and unlimited reminders, all of which require the Pro plan.
Which Platform Is Right for Your Client?
Choose Xero if your client:
Is a sole trader with or without property income, and needs a single MTD ITSA platform covering self-employment as well as property.
Is VAT-registered and requires MTD for VAT submissions alongside MTD for Income Tax from one platform.
Has foreign property income that needs to be submitted as a separate MTD ITSA stream with certainty.
Has more than one sole-trade business and needs the multi-business MTD ITSA module.
Requires their accountant to manage and submit quarterly updates centrally across multiple clients via Xero Practice Manager.
Needs accruals-basis accounting, a full nominal ledger, trial balance, or formal balance sheet as part of their accounting records.
Does not need property management features and prefers a pure accounting platform.
Choose Landlord Studio if your client:
Is a landlord with UK property income only, with no material sole-trade business, and who needs confirmed, live HMRC-recognised MTD software.
Wants a single platform for property management and MTD accounting, including tenancy management, maintenance, and compliance reminders, at an affordable price.
Has a small portfolio (up to 3 units) and wants to start with a free plan, paying only £5 per MTD submission.
Co-owns properties with a partner or investor and wants native per-owner MTD submissions from one account without manual share calculations.
Prefers a mobile-first platform with a smart receipt scanner and AI bookkeeping on the Pro plan.
Works with an accountant who is enrolled in the Landlord Studio accountant partner programme.
Does not need VAT submission capability or sole trader income coverage.
What Neither Platform Fully Resolves
Several MTD-related areas remain unresolved as at June 2026 and affect both platforms:
Partnerships are not yet in scope for MTD for Income Tax. HMRC has not confirmed a start date. Neither Xero nor Landlord Studio currently supports MTD ITSA for partnership income.
MTD for Corporation Tax is not yet mandated. Limited company landlords are outside the scope of MTD ITSA, which applies to individuals only.
The Final Declaration under MTD ITSA covers qualifying business income, but does not replace the need to declare all other income, including employment, dividends, and capital gains. Both platforms require clients to confirm these figures either within the software or through HMRC's own systems.
HMRC has confirmed that penalty points for late quarterly submissions are paused during the 2026 to 2027 tax year. Financial penalties for late Final Declarations are not paused and apply from April 2026.
Landlord Studio's specific scope for foreign property MTD submissions should be confirmed directly with the provider before advising clients who have overseas rental income.
Conclusion
Xero and Landlord Studio serve distinct client profiles. For landlords with a straightforward UK property portfolio who want property management, MTD compliance, and mobile accounting in a single affordable platform, Landlord Studio is the more fitting choice. Its confirmed HMRC recognition, free entry-level plan, native co-ownership MTD submissions, AI receipt scanning, and built-in property management tools make it a compelling option for independent landlords who do not need the breadth of a full accounting platform.
Xero remains the stronger choice wherever accounting breadth is the primary requirement: sole traders with or without property, VAT-registered businesses, landlords with foreign property income, and practices that need centralised agent filing and multi-business MTD support across a client portfolio. Its entry price is higher and it lacks property management features, but no other platform on the market covers as many MTD income types with as strong an accountant workflow.
For many landlords with mixed income, the most practical solution may be both platforms together. Landlord Studio handles the property management, rent tracking, and UK property MTD submissions; Xero handles the self-employment income, VAT, and the practice relationship. The native Xero integration on Landlord Studio Pro and Pro Plus makes this a workable dual-platform setup without duplicate data entry.
