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Choosing an MTD software that works for you will be essential to stay compliant with the new regulation. Here’s what to look for in MTD-compliant landlord software.
Head of Real Estate Education & Editorial at Landlord Studio
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As the HMRC prepares to roll out Making Tax Digital for Income Tax (MTD for IT), ensuring compliance with HMRC regulations has become a top priority for landlords.
The key to staying compliant with MTD for Income Tax (IT) is choosing the right software. This software will handle your digital records, help you submit quarterly updates, and make the process easier, smoother, and more accurate.
In this article, we’ll guide you through the key features to look for when selecting the best software for MTD for landlords, so you can meet your tax obligations and run an efficient and profitable rental business.
For landlords, MTD for IT requires that all tax records and submissions be maintained digitally.
The right software will help you stay compliant with these new tax laws by:
Selecting the right MTD software is crucial because it ensures you remain compliant, reduces the risk of errors, and saves time.
When choosing MTD-compliant software for your rental business, there are several important features and factors to consider:
The most important feature is that the software must be HMRC-recognised. This ensures the software meets the requirements of MTD for IT and can integrate seamlessly with HMRC’s systems. Without this recognition, your submissions will not be valid, and you could face penalties.
Make sure the software explicitly states it is MTD-compliant for Income Tax and capable of sending quarterly updates and final submissions to HMRC.
As a landlord, you likely have many responsibilities, from managing tenants to maintaining your property. You don’t want to waste time figuring out complicated software.
Look for software with an intuitive interface and user-friendly design. The process of recording your rental income and expenses, submitting updates, and filing final returns should be easy and straightforward.
The best MTD software will integrate with your existing tools to make your workflow seamless. For landlords, integration with property management software or accounting software is particularly useful.
For example, Landlord Studio has all the tools you need to not only keep accurate and up to date digital records, but also to manage key property management tasks such as finding new tenants, staying on top of maintenance tasks, organising safety certificate renewals, and storing and organising key compliance documentation (like EPCs and tenancy agreements).
What is more, it integrates directly with Xero making it easy to work with your accountant. Meaning you can work in a system designed for you, and your accountant can work in a systems they are already familiar with for a streamlined MTD compliance.
Cloud-based software allows you to access your records from anywhere—whether you’re at home, in the office, or on the go. This is particularly important for landlords who may need to access data across multiple properties or while traveling.
Additionally, cloud-based solutions mean you data is backed up, minimising the risk of losing important financial records.
MTD for IT requires that landlords submit quarterly updates to HMRC detailing their rental income and expenses.
You will need a software that can handle submitting these quarterly updates directly to the HMRC so you can streamline the submission process.
Check that the software also final declarations for the end of the tax year.
In accordance with MTD requirements, landlords must maintain digital records of all transactions. Look for software that allows you to keep records digitally and ensures your data is easy to retrieve when needed.
Additionally, for landlords who use bridging software or multiple systems, ensure your software supports digital links between various platforms to meet MTD’s requirement for seamless data transfer.
While not a requirement, this is definitely a nice to have. Some MTD software solutions come with automatic tax estimate feature. This can make financial planning and final declarations much easier by setting expectations of your final tax obligations. This is especially useful for landlords with multiple properties or complex financial situations.
Additionally, having a detailed reporting system, allowing you to dig into your buy-to-let finances will not only help you with tax compliance, by also allow you to assess cash flow, identify areas of overspend, and make better, more informed long-term financial decisions.
Having access to your MTD software on your phone or tablet can make it easier to update records on the go, especially when you’re visiting properties, meeting with tenants, or handling maintenance issues.
Check the level of customer support the software provider offers. Ideally, they should provide access to a dedicated support team that can help you with any issues related to MTD compliance or technical support.
Landlord Studio is rated 4.9 starts from over 131 reviews. Read Landlord Studio reviews here.
MTD software can range from basic, affordable options to more robust, feature-packed solutions. Consider your business needs and look for software that offers the best value for the features you require. Keep an eye on any monthly or annual subscription fees and choose software that fits your budget.
Landlord Studio offers a free plan, but for landlords with larger portfolios or who’d like more advanced tools like bank feed integration, then the PRO plan starts at only £12 per month. View pricing plans.
For landlords, Landlord Studio is an excellent choice when it comes to MTD-compliant software. It provides all the necessary features for managing rental properties while ensuring compliance with HMRC regulations.
Here’s why Landlord Studio is perfect for landlords:
Landlord Studio will be MTD-compliant and HMRC-recognised for Income Tax before the 2026 deadline.
Choosing the right MTD software is a critical step in staying compliant with HMRC’s new regulations. By carefully selecting software that is MTD-compliant, user-friendly, and capable of meeting all your business needs, you can ensure smooth, hassle-free tax reporting.
Whether you're managing a single property or multiple rental units, Landlord Studio’s MTD solution offers everything you need to stay compliant, track your finances, and run a successful rental business.
Next, we’ll dive deeper into MTD bridging software and how it works with your digital records.
