Cheap MTD Software for Landlords (2026)
Last updated 27 June 2026 · 8 min read · By the LandlordTaxAi Editorial Team
The short answer
You don’t need expensive software for MTD. The cheapest route can be free — FreeAgent is free with a NatWest, RBS, Ulster or Mettle account, and several property tools have free tiers. Low-cost paid plans run from a few pounds a month. But cheap only counts if it’s HMRC-recognised and produces accurate records — a wrong figure costs more than any saving.
MTD for Income Tax doesn’t require a premium platform. For most landlords, a free or low-cost HMRC-recognised tool is enough. This guide covers the cheapest routes — and the trap of choosing on price alone.
See also free MTD software for landlords and best MTD software for a one-property landlord.
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MTD Threshold Checker
See whether you need MTD software at all, and from when — before paying for anything.
Result
- Total qualifying income
- £28,000
- You must use MTD for Income Tax
- From 6 April 2028
Cheapest routes: FreeAgent (free with NatWest/RBS/Ulster/Mettle), free tiers, bridging. Must be HMRC-recognised. Estimate only.
The cheapest routes
There are three genuinely low-cost paths: bank-linked free (FreeAgent free with a qualifying NatWest-group or Mettle account), free tiers of property tools like Landlord Studio, and spreadsheet plus bridging software for the spreadsheet-confident. Beyond those, several providers offer low-cost paid plans of just a few pounds a month.
A qualifying bank account can take your software cost to £0 — often the single biggest saving available to a landlord.
Low-cost options at a glance
| Route | Cost | Best for |
|---|---|---|
| FreeAgent (bank-linked) | Free with NatWest/RBS/Ulster/Mettle | Landlords with a qualifying bank |
| Property tool free tier | £0 with limits | Small portfolios, simple needs |
| Spreadsheet + bridging | Low (bridging fee) | Spreadsheet-confident landlords |
| Low-cost paid plan | A few £/month | Want simple tool, no qualifying bank |
Every option here must be HMRC-recognised to actually submit your MTD updates — confirm before relying on it. Pricing moves, so check current terms.
Why the cheapest isn’t always best
Price is only half the equation. If a bare-bones tool makes it easy to mis-categorise expenses, miss allowable costs, or muddle which property a transaction belongs to, the extra tax — or HMRC enquiry — can cost far more than a slightly pricier tool that keeps records clean. Value is accurate, easy records, not the lowest monthly fee.
Low cost, done-for-you records
LandlordTaxAi reads your bank statements, categorises rent and expenses per property against HMRC categories and keeps MTD-ready records — accuracy without the admin.
See how it worksA worked example
Three landlords minimise cost for April 2026.
| Banks with NatWest, one flat | FreeAgent — £0 |
| Two properties, simple | Free tier or low-cost plan |
| Confident with spreadsheets | Spreadsheet + bridging software |
All can be compliant at little or no cost — just confirm each is HMRC-recognised and keeps your figures right.
Frequently asked questions
What’s the cheapest MTD software for landlords?
It can be free — FreeAgent with a NatWest/RBS/Ulster/Mettle account, or free tiers of property tools. Low-cost paid plans also exist. Confirm HMRC recognition and current pricing.
Is free MTD software any good?
It can be excellent for simple needs. The limits are usually feature or property/transaction caps — check they fit your portfolio.
Why isn’t the cheapest always best?
A wrong figure or missed expense can cost more than the saving. Value is accurate, easy records — not just low price.
Can I use a spreadsheet with bridging software?
Yes — keep records in a spreadsheet and submit via HMRC-recognised bridging software, maintaining proper digital links. Suits the spreadsheet-confident.
Do cheap tools still submit to HMRC?
Only if HMRC-recognised for MTD for Income Tax. Always check the compatible-software list.
How much should a landlord expect to pay?
From £0 (bank-linked or free tier) to a few pounds a month, up to more for full platforms. Most simple landlords can stay at the low end.
Written and reviewed by the LandlordTaxAi Editorial Team. Our guides are reviewed against current HMRC guidance and updated when the rules change. Operated by LandlordTaxAi, United Kingdom. Follow us on LinkedIn.
Last reviewed: 27 June 2026 · Researched against primary UK sources for the 2026/27 tax year: https://www.gov.uk/guidance/choose-the-right-software-for-making-tax-digital-for-income-tax; https://www.gov.uk/guidance/find-software-that-works-with-making-tax-digital-for-income-tax. This article is informational only and does not constitute tax advice. Check the latest details on GOV.UK or with a qualified accountant.