Choosing MTD Software as a Landlord: Your 2026-27 Checklist

Charlotte Baroukh

Tax Expert @ Pie

6 min read

What to Look for in MTD Software for Landlords

If you’re a landlord looking for MTD software, it only needs to do three jobs: keep digital records of your rent and costs, send quarterly updates to HMRC, and have HMRC's official stamp of approval.

Pie Tax covers all three in one free app built for landlords and sole traders. Below, we’ve broken down everything you need to know for the 2026–27 tax year whether you rent out a single flat, manage a portfolio, share ownership, or pay mortgage interest.

Making Tax Digital for Income Tax (MTD, HMRC's system for sending tax information digitally through the year) changes how many landlords report their income. Instead of a single Self Assessment return each year, you keep records in software and send summaries every quarter. If you want the background first, our guide explains what MTD is and who it affects.

Who Needs MTD Software This Tax Year

Making Tax Digital for Income Tax has applied since 6 April 2026 to sole traders and landlords whose qualifying income is over £50,000. That threshold falls to £30,000 from April 2027, which brings many more landlords into the rules.

Qualifying income means your gross income from self-employment and property added together, before expenses. It is not your profit. A landlord with £40,000 of rent and £15,000 of freelance income has qualifying income of £55,000, even if their costs are high. HMRC uses the figures from your Self Assessment return for an earlier year to work out whether you are in.

If you own a property jointly, only your share of the rent counts towards your total. Income from employment, pensions and savings does not count towards the threshold, although you still report it in your final declaration.

If you are in scope, you need to sign up rather than wait to be moved across. Our article on how to register for MTD covers the steps.

The Core Checklist Every Landlord Should Run Through

Recognised by HMRC

Only software that HMRC recognises can send MTD submissions. HMRC publishes a list of recognised products on GOV.UK, and you can filter it by what you need, such as UK property income or foreign property income. If a product is not on that list, it cannot file for you, however polished it looks. When you compare Making Tax Digital software, this is the first test that rules products in or out.

Check, too, that the software covers the whole year, not just the quarterly part. Some products only send quarterly updates, leaving you to find something else for the end-of-year return.

Digital Records That Hold Up

MTD requires you to keep digital records of each item of income and expense, with the date, amount and category. Good software makes this quick: you should be able to add rent receipts and bills easily, attach photos of receipts and see a running total for each property.

If you prefer spreadsheets, look for bridging software, which links a spreadsheet to HMRC so you can keep your current method while still meeting the rules.

Quarterly Updates and the Final Declaration

Under MTD you send four quarterly updates a year, with deadlines of 7 August, 7 November, 7 February and 7 May. After the tax year ends, you submit a final declaration by 31 January, which replaces the old Self Assessment return. Software that shows upcoming deadlines and reminds you well ahead saves a lot of last-minute scrambling. Our article on MTD requirements and deadlines for ITSA sets out the timings in detail.

Features That Matter Specifically to Landlords

Handling Several Properties

If you let several homes, you want software that tracks each property separately while combining them for HMRC. All your UK rental properties are treated as a single UK property business for tax, so the figures you submit are totals. Seeing each property on its own, though, tells you which ones are earning their keep and which are costing you. It helps to see how this kind of software pulls in and sorts your transactions before you decide, so you know what happens automatically and what you will still do yourself.

UK and Overseas Lets

UK property and foreign property are reported as separate businesses. If you let a flat abroad, make sure the software supports foreign property income, not just UK lettings.

Joint Ownership

Many landlords own with a partner or spouse. Each owner reports their own share, so the software should let you record your percentage, for example a 50% share, and work out your portion of rent and costs automatically.

Mortgage Interest and Allowable Expenses

Allowable expenses are costs you can deduct from rent to reduce your taxable profit, such as letting agent fees, repairs, insurance and ground rent. Residential mortgage interest works differently: you cannot deduct it, but you get a tax credit worth 20% of the interest instead. Software should keep finance costs in their own category so this is worked out correctly.

Smaller landlords have a helpful shortcut. If your property income is below £90,000, you can send a single total for expenses in your quarterly updates rather than splitting them into categories. You still need digital records underneath, but it keeps the updates simple. Check the software supports this option.

Other Income Alongside Rent

If you also freelance or run a sole trader business, choose software that handles self-employment and property income together. Otherwise you could end up juggling separate products and separate records for what is, in the end, one tax return. It is worth reading what to expect from a provider built for sole traders and landlords so you know what a joined-up tool should offer.

Practical Questions to Ask Before You Commit

Once the basics are covered, the right choice comes down to how you work. Start with cost. Some products are free, others charge monthly, and some charge per property. Work out the total for a full year at your size, not just the starting price.

Next, ask how income gets in. Bank connections can pull in rent payments and bills automatically, which cuts down on typing and missed items. Manual entry works too, but it takes longer and relies on you remembering every payment.

If you use an accountant or agent, ask whether they can access your records. Check how easy it is to export your data if you ever switch, and what support is on offer when something does not add up. Clear help in plain English matters more than a long feature list.

Finally, be honest about what you actually need. A landlord with a single flat needs something simple, while a landlord with a mixed portfolio and a side business needs more. Hold each option up against this checklist and choose the one that covers your situation without extra complexity.

What to Do Now

If you want software that handles Self Assessment and Making Tax Digital in one place, Pie Tax is built for landlords, sole traders and freelancers, pulling in your rental income, sorting allowable expenses and taking the stress out of quarterly updates.

Whatever you choose, start by checking your qualifying income against the £50,000 and £30,000 thresholds. If you are in scope, or close to it, sign up for MTD and pick your software well before your first quarterly deadline, so you have time to set up each property and any joint shares.

Gather your tenancy agreements, mortgage statements and recent bills, and get into the habit of adding receipts each week rather than saving them up. If you would like to see how it works with your own figures, you can try Pie Tax for free and set up your first property today.