Both Xero and Provestor are HMRC-recognised for Making Tax Digital for Income Tax. Both allow UK landlords to submit quarterly updates and a Final Declaration directly to HMRC. Beyond that, they operate on different models, serve different landlord profiles, and provide materially different levels of involvement in the compliance process itself.
This article draws exclusively on each provider's own published pricing and feature pages and on HMRC's published guidance, all verified as at June 2026. Prices are stated exclusive of VAT unless noted otherwise. First-year introductory prices are noted where applicable; standard prices are confirmed separately.
The MTD for Income Tax Mandate: The Essentials
Making Tax Digital for Income Tax 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 earning above £30,000 from April 2027 and above £20,000 from April 2028. Source: HMRC guidance, gov.uk, updated 2 April 2026.
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.
HMRC has paused penalty points for late quarterly submissions during 2026 to 2027. Financial penalties for a late Final Declaration apply from April 2026. The first quarterly update deadline for the 2026 to 2027 tax year is 7 August 2026.
Xero and MTD: What The Platform Covers
HMRC Recognition and Income 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 ahead of the April 2026 mandatory start. Every paid UK plan, namely Simple (£7/month), Ignite (£16), Grow (£37), Comprehensive (£50), and Ultimate (£65), covers UK property, self-employment, and foreign property income, with quarterly updates and the Final Declaration all included. Source: Xero UK pricing and feature pages, June 2026.
What Xero Provides
Xero is a cloud accounting platform. It provides the infrastructure for digital record-keeping, with Open Banking bank feeds pulling in transactions automatically, Hubdoc for receipt capture and OCR, and tracking categories for per-property income and expense tracking. Quarterly updates and the Final Declaration are submitted directly to HMRC from within Xero.
Xero does not provide accountants as part of its subscription. The bookkeeping, categorisation, Section 24 calculations, and year-end declaration must be handled either by the landlord or by their accountant, who accesses the Xero account directly or through Xero Practice Manager.
Section 24 and Joint Ownership in Xero
Section 24 of the Finance Act 2015 restricts the deductibility of residential mortgage interest for individual landlords, replacing the full deduction with a 20% tax credit. Xero does not automate Section 24 calculations. The correct treatment must be applied manually by the landlord or their accountant when preparing the quarterly update and Final Declaration. Errors in Section 24 treatment are one of the most common sources of incorrect landlord tax returns; the absence of automation here is a material consideration for landlords without an accountant.
Joint ownership of properties requires manual tracking category splits in Xero, with each owner's share of income and expenses calculated and allocated separately. There is no automated ownership-percentage-based splitting built into Xero. Source: Xero feature documentation; comparison with Provestor published pages, June 2026.
MTD for VAT and Multi-Business
Xero supports MTD for VAT across all paid UK plans, a capability Provestor does not offer. Xero also supports multiple business income streams in a single account via its multi-business MTD ITSA module (2025 public beta), which allows separate quarterly updates for each income source. For landlords who also have self-employment income, Xero can cover both streams without a second software subscription.
Agent and Practice Tools
Xero Practice Manager and Xero HQ give accountants and bookkeepers a centralised multi-client dashboard for filing quarterly updates on behalf of landlord clients. This is a purpose-built agent workflow that allows practices to manage a portfolio of MTD ITSA clients efficiently.
Provestor and MTD: What The Service Covers
HMRC Recognition: Confirmed
Provestor is HMRC-recognised software for Making Tax Digital for landlords, as stated on its own product pages. The underlying software platform runs at app.inni.tax and is provided by Inni Ltd, Provestor's parent company. Provestor Accounts Ltd is registered in England with Companies House number 10510713.
The Three-Tier Service Model
Provestor offers three distinct tiers, each combining the same HMRC-recognised software with a different level of accountant involvement. All prices below are introductory first-year prices; standard prices are higher from year two.
DIY, £69 per year (first year; £99 per year thereafter). Landlord uses the software independently. AI categorises transactions. Mortgage calculations handled automatically. Landlord reviews and submits quarterly updates and the Final Declaration. This tier is self-service but with automated property tax intelligence built in.
Assisted, £199 per year (first year; £249 per year thereafter). Everything in DIY, plus a qualified Provestor accountant reviews each quarterly return before it is filed, flags errors, and prepares and submits the Final Declaration. The landlord does the record-keeping and approves; the accountant checks and files.
Done For You, £399 per year (first year; £499 per year thereafter; up to 10 properties). The accountant does everything: record-keeping, quarterly updates, and the Final Declaration. The landlord uploads bank statements and receipts quarterly and receives an email when each update is filed. The landlord reviews and approves before submission but does no bookkeeping.
Provestor notes that most accountants charge £300 to £500 for year-end preparation alone. The Done For You tier includes year-end at no extra cost, which Provestor presents as the equivalent of replacing a traditional accountant relationship for property tax.
AI Categorisation and Property Tax Intelligence
Provestor's AI reads every line of uploaded statements and receipts and categorises transactions automatically against HMRC's property income categories. The landlord confirms the categorisation is correct before each quarterly submission. This is designed around the way landlords think about their finances, with categories presented in property terms rather than generic accounting ledger terms.
Section 24 Handled Automatically
Provestor handles Section 24 mortgage interest calculations automatically after a one-time mortgage setup. Residential mortgage interest receives the correct 20% tax credit treatment rather than a full deduction, applied correctly every quarter without manual intervention from the landlord. This is explicitly stated on the Provestor MTD product page as a feature.This is a meaningful differentiator from Xero. Section 24 errors are common among landlords who self-manage their accounts without specialist input. Provestor removes this risk at every tier.
Joint Ownership Handled Automatically
Provestor's software asks for the ownership percentage once and then splits income and expenses correctly for HMRC every quarter, with no manual calculations required. This is confirmed on the Provestor MTD product page, which states: tell us your ownership percentage once, we split income and expenses correctly for HMRC every quarter, zero manual calculations.
Letting Agent Integration
Provestor has a letting agent partner network. Where a landlord's letting agent is a Provestor partner, rent and fees flow directly into the platform. The landlord connects once and the agent feeds data automatically, removing the need for manual statement uploads for agent-managed properties.
Mixed Income: Provestor's Own Guidance
Provestor publishes explicit guidance on its website stating that landlords with self-employment income alongside property income should use two separate MTD apps, one for property (Provestor) and one for self-employment. Provestor's guide on mixed income explicitly states that HMRC expects landlords to use more than one app for mixed income, and explains why forcing everything into one tool is the wrong approach.
Note
Landlords with qualifying self-employment income alongside rental income cannot use Provestor as their sole MTD platform. They will need a second HMRC-recognised software subscription for their self-employment income stream. Provestor's own published guidance confirms this and recommends a two-app approach.
Scope Limitations
Provestor is a landlord-only service for personal tax. It does not cover VAT, corporation tax, or self-employment income. Landlords holding property through a limited company must use Provestor's separate limited company service. Foreign property income is not confirmed as within scope on published pages; landlords with overseas rental income should verify directly with Provestor.
Pricing Comparison
Xero
Xero Simple at £7 per month (£84 per year excluding VAT) covers a single individual with straightforward affairs, with all quarterly updates and the Final Declaration included. All income types, including property, self-employment, and foreign property, are covered. There is no permanent free plan and no accountant is included. Accountant fees are separate.
Provestor for Landlords
The DIY tier at £69 per year (first year; £99 per year thereafter) is cheaper than Xero Simple and includes automatic Section 24 calculations and joint ownership splitting. It does not include an accountant.
The Assisted tier at £199 per year (first year; £249 per year thereafter) includes a qualified accountant reviewing each quarterly return and preparing and submitting the Final Declaration. For a landlord who would otherwise pay an accountant separately for quarterly review and year-end preparation, this tier may represent a lower total cost than Xero plus a separate accountant, depending on individual fee arrangements.
The Done For You tier at £399 per year (first year; £499 per year thereafter) covers up to 10 properties and includes full record-keeping, all quarterly updates, and the Final Declaration as a managed service.
These are introductory first-year prices. Landlords should verify the current standard pricing and any promotional terms directly with Provestor before committing, as introductory pricing may change or have expiry conditions not fully detailed on the website.
Side-by-Side Comparison
The table below is based on each provider's own published pricing and feature pages and on HMRC's published guidance, all current as at June 2026.
Feature | Xero | Provestor |
|---|---|---|
Product model | Cloud accounting software, self-managed or accountant-assisted | Tiered service: self-service software (DIY), software plus quarterly accountant review (Assisted), or fully managed accountant service (Done For You) |
HMRC MTD ITSA recognition | Yes, confirmed on HMRC compatible software register | Yes, HMRC-recognised software for landlords (provestor.co.uk, June 2026) |
Audience | Sole traders, landlords, SMEs, accountancy practices | UK landlords only (personal tax, UK property income) |
UK property income | Yes, all paid plans | Yes, core use case across all three tiers |
Self-employment income | Yes, all paid plans | No. Provestor explicitly states landlords with self-employment income need a second MTD app for that income stream (provestor.co.uk/guides/mtd-mixed-income, June 2026) |
Foreign property income | Yes (UK-resident landlords) | Not confirmed on published pages; UK residential property is the stated scope |
MTD for VAT | Yes, all paid plans (since April 2019) | No |
Quarterly updates | Yes, direct HMRC API | Yes, direct HMRC API (all three tiers) |
Final Declaration | Yes, included in all paid plans | Yes, DIY tier: landlord submits; Assisted tier: accountant prepares and submits; Done For You tier: accountant prepares and submits |
AI transaction categorisation | No dedicated property AI; Hubdoc for receipt OCR | Yes, property tax AI categorises every transaction automatically (all tiers) |
Section 24 mortgage interest | Manual; landlord or accountant must calculate the 20% tax credit correctly | Automatic. Provestor handles Section 24 calculations correctly every quarter after a one-time mortgage setup (provestor.co.uk/tour/mtd, June 2026) |
Joint ownership profit-splitting | Manual via tracking categories | Automatic. Ownership percentage entered once; income and expenses split correctly for HMRC every quarter (provestor.co.uk/tour/mtd, June 2026) |
Quarterly accountant review | No (requires separate accountant engagement) | Yes, included in Assisted and Done For You tiers |
Accountant preparation of Final Declaration | No (requires separate accountant engagement) | Yes, included in Assisted and Done For You tiers |
Fully managed filing | No | Yes, Done For You tier: accountant does record-keeping, quarterly updates, and Final Declaration. Landlord uploads documents and approves |
Letting agent integration | No property-specific letting agent connection | Yes, partner letting agents connect directly; rent and fees flow in automatically (provestor.co.uk/tour/mtd, June 2026) |
Bank feeds | Yes, Open Banking, all paid plans | Not confirmed as a bank feed feature on published pages; AI categorises uploaded statements and receipts |
Receipt / statement upload | Yes, Hubdoc OCR on all paid plans | Yes, upload statements and receipts; AI reads and categorises (all tiers) |
Mobile app | Yes, iOS and Android | Web app via app.inni.tax; mobile browser accessible; no dedicated native app confirmed on published pages |
Agent / practice filing | Yes, via Xero Practice Manager / Xero HQ | Not a multi-client practice tool; landlord-facing service only |
Multi-business MTD ITSA | Yes, multi-business module (2025 public beta) | No. One income stream (UK property) per account |
Limited company landlords | Yes, company accounts and CT600 preparation available | MTD for personal tax only; limited company tax is a separate Provestor service |
Entry-level price | £7 + VAT/month (Xero Simple, £84/year) | £69/year ex-VAT (DIY, first year introductory price; £99/year thereafter) |
Mid-tier price | Xero Ignite: £16 + VAT/month | £199/year ex-VAT (Assisted, first year; £249/year thereafter) |
Fully managed price | Requires separate accountant fees | £399/year ex-VAT (Done For You, first year; £499/year thereafter, up to 10 properties) |
Free trial / pilot period | No permanent free plan | No charge until 6 April 2026 (sign-up offer stated on site; verify current terms directly) |
Property limit | No stated property limit | Done For You: up to 10 properties; DIY and Assisted: not stated |
Company registration | Xero Limited, NZ-incorporated | Provestor Accounts Ltd, Companies House No. 10510713, registered in England |
Which Is Right for Your Client?
Choose Xero if your client:
Has both property and self-employment income and needs a single HMRC-recognised platform covering both income streams without a second software subscription.
Is VAT-registered and requires MTD for VAT alongside MTD for Income Tax from a single platform.
Has foreign property income alongside UK property and needs confirmed coverage of all qualifying income types.
Works with an accountancy practice that manages multiple landlord clients through Xero Practice Manager with agent-level filing.
Needs accruals-basis accounting, a formal nominal ledger, or balance sheet in addition to MTD compliance.
Has a limited company alongside personal property income and wants a single platform that can handle both.
Prefers to manage their own bookkeeping with a broad set of accounting tools and does not want to pay for accountant involvement they do not need.
Choose Provestor if your client:
Is a UK landlord whose qualifying income comes entirely or predominantly from UK property, with no material self-employment income.
Wants Section 24 mortgage interest handled automatically without manual calculation or accountant input at every quarter.
Co-owns properties with a spouse, partner, or co-investor and wants ownership-percentage-based income splitting applied automatically every quarter.
Would benefit from accountant oversight of each quarterly return before filing, at a fixed annual price (Assisted tier).
Wants to hand off all MTD compliance to property tax specialists and receive an email when each quarter is done (Done For You tier).
Is currently paying a generalist accountant separately for year-end and wants to consolidate that cost into a specialist property tax service.
Does not have a sole-trade business alongside property income, or is prepared to use a second MTD app for self-employment income in line with Provestor's own guidance.
A Note on the Accountant Relationship
The most important structural distinction between Xero and Provestor is that Provestor's Assisted and Done For You tiers include qualified accountants as part of the subscription. This changes the nature of the compliance relationship fundamentally.
With Xero, the software provides the infrastructure and the landlord or their separately engaged accountant provides the compliance judgement. Errors in Section 24 treatment, joint ownership splits, or expense categorisation are the landlord's or their accountant's responsibility to identify and correct.
With Provestor Assisted or Done For You, a qualified property tax accountant reviews or prepares every submission. The accountant relationship is embedded in the product price.
For accountancy practices advising landlord clients, this creates a consideration: a client who moves to Provestor Done For You is effectively engaging Provestor's accountants for their property tax compliance. This may suit clients who want a fully managed specialist service, but practices should discuss the implications for the existing client relationship before recommending this tier. For clients who remain on Provestor DIY, the practice can continue to provide oversight using Provestor's platform or alongside it.
What Neither Product Fully Resolves
Partnerships are not yet in scope for MTD for Income Tax. HMRC has not confirmed a start date. Neither Xero nor Provestor currently supports partnership MTD ITSA submissions.
MTD for Corporation Tax is not yet mandated. Limited company landlords are outside the scope of MTD ITSA, which applies to individuals only. Both providers offer separate routes for limited company accounting.
The Final Declaration covers qualifying business income but does not replace the need to declare employment income, dividends, capital gains, or other income sources separately. Both platforms require clients to confirm these figures at year-end.
HMRC has paused penalty points for late quarterly submissions during 2026 to 2027. Financial penalties for late Final Declarations apply from April 2026.
Conclusion
Xero and Provestor serve genuinely different landlord needs and comparing them purely on price or features misses the more important question of what compliance model the landlord actually wants.
Xero is the stronger choice for landlords with mixed income, VAT registrations, foreign property, or complex multi-entity structures, and for practices that want centralised agent-level filing across a client portfolio. It is a powerful accounting platform that gives the landlord or their accountant complete flexibility. It does not automate Section 24, does not split joint ownership automatically, and does not include any accountant as part of the subscription.
Provestor is the stronger choice for UK residential landlords whose income is primarily from property, who want Section 24 and joint ownership handled correctly without manual input, and who would benefit from qualified property tax accountants being either involved or fully in charge. It is not a platform for accountants managing multiple clients, and it is not suitable as a sole MTD solution for landlords with self-employment income, by Provestor's own explicit guidance.
For the right client, the Provestor Assisted or Done For You tier offers something no general accounting platform provides: specialist property tax expertise as part of the annual subscription. Whether that matches a given landlord's needs and budget is the correct question to ask.
