Making Tax Digital (MTD) Software for Landlords

Making Tax Digital for Income Tax (MTD ITSA) is a mandatory HMRC regime requiring UK landlords to keep digital records of rental income and expenses and submit quarterly updates to HMRC through recognised software. It replaces the traditional annual Self Assessment return for those within scope. Landlords must submit four quarterly updates each tax year plus a year-end Final Declaration by 31 January.

MTD for Income Tax is now live for UK landlords with gross rental income over £50,000. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028.

HMRC measures the MTD threshold against gross rental receipts before expenses, not taxable profit. A landlord receiving £52,000 in rent but incurring £20,000 in allowable expenses still has a gross income of £52,000 and falls within the MTD regime. HMRC also combines UK property income, overseas property income, and self-employment income to determine whether the threshold is met. Dividends, savings interest, pension income, and capital gains are excluded from the calculation.

Yes. HMRC requires landlords to use MTD-compatible software that can maintain digital records and submit quarterly updates directly to HMRC systems. Spreadsheets alone are not MTD compliant.

No. Spreadsheets are not MTD compliant. HMRC requires landlords to use recognised software that can maintain digital records and submit quarterly updates directly to HMRC systems.

Under MTD for Income Tax, landlords must submit four quarterly updates each tax year. The deadlines are: Q1 (April to June) — 7 August; Q2 (July to September) — 7 November; Q3 (October to December) — 7 February; Q4 (January to March) — 7 May. A year-end Final Declaration must be filed by 31 January following the tax year. Missing a deadline triggers HMRC's penalty points system — four points results in a £200 fine per late submission, with escalating charges thereafter.

With RentalBux, quarterly submissions are simple: the software calculates your rental income and allowable expenses automatically. You review the figures, confirm they are correct, and submit to HMRC with a few clicks. RentalBux handles the technical submission process directly — no bridging software or spreadsheet exports required.

HMRC does not recommend specific software, but maintains a recognised software list. For landlords, the main platforms are RentalBux (built exclusively for landlords, free for one property until March 2028), Hammock (landlord-specific, from £8/month after free trial), and Landlord Vision (property management plus MTD, from £19.97/month). Generic platforms like Xero and Sage are also HMRC-recognised but are not built specifically for property income structures such as joint ownership or foreign property.

Yes. RentalBux is free for landlords with one property until March 2028, with no credit card required. This covers digital record keeping, bank feeds, quarterly MTD submissions to HMRC, and landlord-specific expense categories. Hammock offers a free trial but charges from £8 per month after the trial period. Monzo Business also offers free MTD functionality for sole traders, though it is not landlord-specific and does not support joint ownership or foreign property.

Both are HMRC-recognised MTD platforms built for landlords. RentalBux additionally supports joint ownership profit splits (calculated automatically per co-owner), foreign property income reported under SA106, and combined rental plus self-employment quarterly submissions — all within one platform. Hammock does not currently support joint ownership splits or overseas property MTD. RentalBux also offers a permanent free plan for one property until March 2028 with no trial restrictions, while Hammock charges from £8 per month after its free trial.

Yes. RentalBux tracks income and expenses property-by-property, calculates quarterly figures for your entire portfolio, and submits consolidated MTD returns to HMRC covering all your rental properties.

RentalBux supports joint ownership for MTD purposes. Set ownership percentages once and the system automatically splits rental income and expenses for each co-owner's MTD submissions — including unequal splits declared under Form 17.

Yes. RentalBux handles MTD for both property income and self-employment income within one platform. HMRC requires separate quarterly updates for each income source, and RentalBux keeps the two streams correctly separated — filing them as distinct submissions under the same account. This matters because generic accounting software often forces landlords with mixed income to manage two separate tools or manually split their records before filing.

Yes. RentalBux tracks UK and foreign rental income separately and submits MTD returns including overseas property income as HMRC requires under SA106. Both income streams are kept correctly separated in every quarterly update and the year-end Final Declaration — no manual splitting required.

Yes. Grant your accountant access and they can view records, review figures, and submit MTD returns on your behalf without needing separate systems or complicated exports.