Free MTD Software for Landlords and Sole Traders. HMRC-Recognised. Zero Cost.

Making Tax Digital (MTD) is HMRC's initiative requiring taxpayers to keep digital records and submit quarterly tax updates using compatible software. From April 2026, sole traders and landlords with qualifying income from self-employment and property over £50,000 must use MTD-compliant software to record income and expenses digitally, calculate quarterly figures, and submit updates to HMRC four times per year. Paper records alone are no longer sufficient for those within scope of MTD, and spreadsheets can only be used alongside HMRC-recognised bridging software.

MTD for Income Tax requires you to: (1) Keep digital records of all income and expenses using MTD-compatible software, (2) Submit quarterly updates to HMRC showing your income and expenses for that period, (3) Submit a final declaration at the end of the tax year confirming your total income. You submit four quarterly updates plus one final declaration each year—five submissions total instead of one annual Self Assessment return.

Yes. You must sign up for Making Tax Digital for Income Tax through your HMRC online account before your first quarterly submission. This links your tax records to your chosen MTD software. RentalBux guides you through the registration process and handles the technical connection to HMRC once you're signed up.

Currently, you must file a Self Assessment return if your income from self-employment or property exceeds £1,000 (the trading allowance). MTD for Income Tax has higher thresholds: since April 2026, MTD applies to those whose qualifying income exceeded £50,000 on their 2024/25 return. The threshold drops to £30,000 from April 2027. Even if you're below the MTD threshold, you may still need to file Self Assessment. MTD is an additional requirement on top of existing obligations.

No. Unlike Self Assessment where you can file directly through HMRC's website, Making Tax Digital requires third-party software. HMRC publishes a list of recognised MTD-compatible software providers but doesn't offer its own free tool. However, some software providers—including RentalBux—offer genuinely free plans that meet all HMRC requirements for MTD compliance.

Yes, but not all “free” options are truly free or suitable for landlords and sole traders. Some banks offer free MTD tools to their business account holders, though these tend to be basic. RentalBux offers a genuinely free plan that includes core MTD compliance: digital record keeping and quarterly submissions, plus property income reporting and optional self-employment tracking.

Yes. RentalBux’s free plan includes HMRC-recognised digital record keeping, quarterly MTD submissions, property income tracking, and self-employment support at no cost. The free plan runs until March 2028 with no hidden fees. Core MTD compliance features such as digital record keeping and quarterly submissions are included at no cost during that period.

The best free MTD software for sole traders and landlords should be HMRC-recognised, handle both property and self-employment income, include bank feed integration, and offer genuine MTD compliance (digital record keeping and quarterly submissions) without hidden fees. RentalBux’s free plan meets all these criteria and is purpose-built for landlords with optional self-employment tracking included.

With RentalBux’s free MTD software, you connect your bank account and transactions import automatically. Categorise each transaction (rent received, repairs, agent fees, etc.) and assign to specific properties if you’re a landlord. The software calculates quarterly totals automatically. When submission deadlines approach, you review the figures and submit directly to HMRC with a few clicks. No manual calculations or separate HMRC logins required.

Yes, this is exactly what RentalBux was built for. Track both income types in one platform with proper separation for HMRC reporting. Submit quarterly updates for both income sources covering both your trade and your properties. One subscription covers everything.

Not necessarily. RentalBux is designed so sole traders can handle quarterly submissions independently. Some users reduce their annual accounting costs by handling quarterly submissions independently. However, if you have complex affairs or prefer professional support, your accountant can access your RentalBux account to review and submit on your behalf.