The MTD for Income Tax Mandate: The Essentials
Under MTD for Income Tax, 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 year.
File a Final Declaration by 31 January following the end of each tax year, replacing the legacy Self Assessment return.
Use software that connects directly to HMRC's MTD API. Bridging via spreadsheet remains permitted where the software holds the digital record, but the submission must be digital.
Qualifying income is the gross income from self-employment and UK and overseas property combined, before deductions. Employment (PAYE) income, dividends, and capital gains do not count toward the threshold but may still need to be declared via the Final Declaration.
HMRC has paused penalty points for late quarterly submissions during the 2026 to 2027 tax year, but financial penalties for a late Final Declaration apply from April 2026. Source: HMRC MTD for Income Tax guidance, gov.uk, updated 2 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, making it one of the most established platforms on the register. It was recognised for MTD for Income Tax (ITSA) ahead of the April 2026 mandatory start. Every paid UK plan, namely Simple (£7 + VAT/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. Source: Xero UK pricing and feature pages, June 2026.
Income types covered
Xero covers all three qualifying income types for MTD ITSA within a single subscription: UK property, foreign property, and self-employment. This is a meaningful distinction for landlords who also operate a business as a sole trader or who hold overseas rental property, as both streams require separate quarterly updates under MTD and both can be handled within Xero without a second software subscription.
Multi-business MTD ITSA
Xero launched a multi-business MTD ITSA module in its 2025 public beta. This allows a single taxpayer with more than one sole-trade business, or with a combination of property and self-employment income, to submit 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. Source: Xero feature comparison page, June 2026.
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 from within the practice tools. This supports the agent-authorisation workflow required by HMRC for third-party filing.
What Xero does not cover
Xero is not a property management platform. It has no tenancy management, compliance tracking, maintenance logging, tenant portal, e-signatures, or portfolio analytics. Landlords who want a single system for both property management and MTD accounting will need to supplement Xero with a separate property management tool, or use the Xero integration available in Landlord Vision's Enterprise plan.
Landlord Vision and MTD: What the Platform Covers
HMRC recognition status: what is and is not confirmed
This section requires particular care. Third-party sources, including augustapp.com and rentalbux.com, list Landlord Vision as appearing on HMRC's compatible software register. Landlord Vision's own pricing page states that "every plan will include full MTD functionality at no additional cost" and confirms MTD for Income Tax (ITSA) submissions as a listed feature across all plans.
MTD income scope
Landlord Vision covers UK property income for MTD purposes. It does not support self-employment income or foreign property income under MTD. Landlords with a sole-trade business alongside property income will need a second MTD software subscription for their self-employment stream. The platform integrates with Xero (Enterprise plan only), which could in theory provide complementary accounting coverage for self-employed landlords, but this introduces dual-platform complexity and additional cost.
Property management capability
Where Landlord Vision distinguishes itself materially from Xero is in its property management depth. The platform covers the full landlord workflow across all plans, with features that Xero does not offer at any tier:
Full tenancy lifecycle management, including automated rent tracking and missed-payment alerts.
Compliance management, with reminders for certificates, inspections, and legal obligations.
Document management, including a legal document centre, file storage, and built-in e-signatures (Standard plan and above).
A tenant portal and service desk for maintenance requests (Standard plan and above).
Mortgage and loan tracking across the portfolio.
Capital gains reporting.
HMO support with per-room, per-tenant rent schedules.
Mail merge, correspondence diary, and work orders (Premium plan and above).
An AI task assistant (Enterprise plan)
These features make Landlord Vision a substantively different product from Xero for landlords who want a single system for both compliance and day-to-day portfolio management, rather than a dedicated accounting tool with MTD bolted on.
Accounting capability
Unlike Xero, Landlord Vision includes accruals-basis accounting across all plans, with a full reporting suite covering profit and loss, balance sheet, trial balance, nominal ledger, cash flow, and income tax reports. This provides more formal accounting output than some competing landlord platforms, and is more suited to landlords whose accountant requires accruals-basis records or management accounts.
Data extraction from scanned receipts is available on all plans. Open Banking bank feeds are included across all plans. VAT support is available on the Enterprise plan only. Source: Landlord Vision pricing comparison table, June 2026.
Agent and accountant access
Landlord Vision does not offer a dedicated agent filing portal. Accountants can access the platform by logging in as the landlord, but there is no separate practice management layer equivalent to Xero Practice Manager. This is a practical consideration for accountants managing multiple landlord clients who need to file MTD quarterly updates on their behalf.
FCA registration
Landlord Vision is registered with the Financial Conduct Authority under registration number 918962. This is confirmed on its own website and verifiable on the FCA register.
Pricing Comparison
Xero
Xero Simple at £7 + VAT per month is the most affordable entry point to a full HMRC-recognised MTD ITSA platform from Xero. It covers one person with straightforward affairs, supports up to 10 outgoing invoices per month, and includes bank feeds and receipt capture via Hubdoc. All quarterly updates and the Final Declaration are included. Sole traders who issue more than 10 invoices per month need the Ignite plan at £16 + VAT per month. Source: Xero UK pricing page, June 2026.
Landlord Vision
Landlord Vision's entry-level Starter plan is priced at £21.97 + VAT per month on a monthly billing basis and covers up to four active tenancies (a two-week free trial is offered; no permanent free plan). The Standard plan, which adds e-signatures, a tenant portal, and a service desk, starts at £34.97 + VAT per month for up to 10 tenancies, with additional tenancies charged at £1.10 per tenancy per month. The Premium plan is £44.97 + VAT per month for up to 15 tenancies. The Enterprise plan, which adds Xero integration, agent statements, VAT support, and an AI task assistant, is £84.97 + VAT per month for up to 25 tenancies. MTD for Income Tax submissions are listed as included across all plans at no additional cost. Source: Landlord Vision pricing page, June 2026.
Landlord Vision is a meaningfully more expensive product at entry level than Xero. The price difference reflects the substantially broader feature set, particularly the property management, compliance, and document management tools that Xero does not offer. A landlord paying for Xero plus a separate property management platform may find the combined cost comparable.
Side-by-Side Comparison
The table below is based on each provider's own published pricing and feature pages and on the HMRC compatible software register, all current as at June 2026. The Landlord Vision MTD submission column reflects the factual position described in Section 3.1 above.
Feature | Xero | Landlord Vision |
|---|---|---|
HMRC MTD ITSA recognition | Yes, confirmed on HMRC compatible software register | Listed on HMRC register; platform's own site (June 2026) states direct submission feature is still in development |
MTD ITSA pilot participation | Yes, since pilot launch | Not confirmed as live pilot participant as at June 2026 |
UK property income | Yes, all paid plans | Yes, core use case |
Self-employment income | Yes, all paid plans | No |
Foreign property income | Yes (UK-resident landlords) | No |
MTD for VAT | Yes, all paid plans (since April 2019) | Enterprise plan only (VAT support listed as Enterprise feature) |
Quarterly updates | Yes, direct HMRC API submission | Listed as included; direct submission in development per own website |
Final Declaration | Yes | Listed as included; direct submission in development per own website |
Agent filing | Yes, via Xero Practice Manager / Xero HQ | No dedicated agent filing; accountants log in as landlord |
Multi-business MTD ITSA | Yes, multi-business module (2025 public beta) | No |
Bank feeds (Open Banking) | Yes, all plans | Yes, all plans |
Receipt OCR / data extraction | Yes, via Hubdoc | Yes, built-in data extraction from scanned receipts (all plans) |
Tenancy management | No | Yes, full tenancy lifecycle, tenant portal, e-signatures, service desk |
Compliance management | No | Yes, built-in compliance reminders and tracking |
Document management | No | Yes, legal document centre, file management, e-signatures |
Mortgage and loan tracking | No | Yes, mortgage and loan management |
Capital gains reporting | No | Yes, capital gains report (all plans) |
HMO support | No | Yes, per-room/per-tenant rent schedules |
Xero integration | Native | Enterprise plan only |
Mobile app | Yes, iOS and Android | Yes, iOS and Android |
FCA registration | No | Yes, FCA Reg. No. 918962 |
Entry-level price | From £7 + VAT/month (Xero Simple) | From £21.97 + VAT/month (Starter, 4 tenancies) |
Free trial | No permanent free plan | 14-day free trial; no permanent free plan |
Accounting basis | Accruals and cash basis | Accruals basis (journal entries, nominal ledger, trial balance available) |
MTD cost | Included in all paid plans | Included in all plans at no extra cost (per pricing page) |
Prices exclude VAT. Always verify current pricing, feature availability, and HMRC recognition status directly with each provider and on the HMRC compatible software register at tax.service.gov.uk before advising clients.
Which Platform Is Right for Your Client?
Choose Xero if your client:
Is a sole trader with no property income, or has both property and self-employment income and needs a single confirmed MTD ITSA platform covering both streams.
Is VAT-registered and needs a single platform for both MTD for VAT and MTD for Income Tax.
Has foreign property income alongside UK property, requiring coverage of all three qualifying income sources.
Requires their accountant to file quarterly updates on their behalf using a dedicated agent portal.
Has more than one sole-trade business and needs the multi-business MTD ITSA module.
Has straightforward property accounting needs and does not require tenancy management, compliance tracking, or document management within the same system.
Choose Landlord Vision if your client:
Is a landlord whose income is exclusively or predominantly from UK property, with no material self-employment income.
Wants a single platform for both property management, including tenancy, compliance, and document management, and MTD-aligned accounting.
Manages a growing portfolio and requires HMO support, per-room rent schedules, and compliance reminders within the same system.
Needs accruals-basis accounting output, capital gains reporting, and a full nominal ledger alongside MTD compliance.
Is not VAT-registered, or is VAT-registered and on the Enterprise plan, which includes VAT support.
Open Issues Affecting Both Platforms
Several MTD-related matters remain unresolved as at June 2026 and affect both platforms equally:
Partnerships are not yet in scope for MTD for Income Tax. HMRC has not confirmed a start date. Neither Xero nor Landlord Vision currently supports MTD ITSA for partnership income.
MTD for Corporation Tax has a separate, still-developing timetable and is not currently mandated. Landlords holding property through a limited company are not within 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 income, dividends, and capital gains. Both platforms will require clients to confirm these figures either within the software or through HMRC's own systems, depending on capability.
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.
Conclusion
Xero and Landlord Vision are not direct competitors for most landlord clients. The right choice depends on the income structure, property portfolio complexity, and administrative workflow of the individual landlord.
Xero is the clearer choice for landlords with mixed income, foreign property, or a VAT registration, and for accountancy practices that need agent-level filing capability and central client management. Its HMRC recognition is confirmed and its MTD ITSA submission capability is live across all qualifying income types.
Landlord Vision is the stronger option for landlords whose income is exclusively or predominantly from UK property and who want one platform for both property management and MTD-aligned accounting. Its tenancy, compliance, and document management depth goes substantially beyond what any general accounting platform offers. However, given the factual uncertainty around the live status of its direct HMRC submission feature as at June 2026, any client in scope for mandatory MTD filing from April 2026 should confirm the current submission status directly with Landlord Vision before committing to the platform as their primary compliance tool.
For landlords or accountants who are uncertain, verifying both platforms' current status directly with their respective support teams, and cross-checking against HMRC's compatible software register at tax.service.gov.uk, remains the only reliable basis for a compliance decision.
