HMRC-Recognised MTD Software for Landlords: How to Choose (2026)
Last updated 24 June 2026 · 8 min read · By the LandlordTaxAi Editorial Team
The short answer
HMRC doesn’t provide its own software for Making Tax Digital — you must use a product on HMRC’s compatible software list. There’s no single "best" one: HMRC runs an official software finder where you answer a few questions to get a personalised list, covering free, paid and bridging options for landlords.
From April 2026, landlords over £50,000 must keep digital records and file quarterly through MTD-compatible software — and a lot of landlords assume HMRC will give them a tool. It won’t. Instead, HMRC recognises third-party software that meets its technical standards, and you choose from that list.
This guide explains what "HMRC-recognised" really means, how to find the right product, and what to check before you commit. To confirm you’re even in scope, see the MTD threshold calculator.
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MTD Threshold Checker
Confirm whether you need MTD-compatible software and from when, based on your income.
Result
- Total qualifying income
- £28,000
- You must use MTD for Income Tax
- From 6 April 2028
Only HMRC-recognised software can file MTD updates. Thresholds £50k/£30k/£20k. Estimate only.
What ’HMRC-recognised’ actually means
HMRC doesn’t build or sell MTD software, and it doesn’t rank or endorse a single "best" product. What it does is recognise software that has been tested against its MTD for Income Tax requirements — meaning it can keep digital records and submit quarterly updates and the final declaration correctly.
Only software on HMRC’s compatible list can legally file your MTD updates. Using a recognised product is therefore non-negotiable — but which one is entirely your choice.
HMRC provides an official software finder tool. You answer a few questions — your income types, whether you want to keep spreadsheets, your accounting period — and it returns a personalised list of compatible products.
Free, paid and bridging — the three routes
Recognised software comes in three broad shapes, and the right one depends on how complex your lettings are and whether you already use spreadsheets.
| Type | Best for | Notes |
|---|---|---|
| Free software | Simple, single-property landlords | Limited features; check what’s actually included |
| Paid software | Multiple properties / more automation | Bank feeds, categorisation, support |
| Bridging software | Landlords keeping spreadsheets | Links your spreadsheet to HMRC via digital links |
"Free" can be limited — some free tools cover only basic quarterly updates and not the full year-end final declaration or non-property income. Check the scope before relying on it. See free MTD software for landlords.
What to check before you choose
Beyond being on the HMRC list, the right software for a landlord should fit how property income actually works.
Software built around how landlords actually work
LandlordTaxAi is designed for property income from the ground up — turning bank statements into categorised, MTD-ready figures, so quarterly updates and the final declaration just work.
See how it worksA worked example
Two landlords need recognised software for April 2026: one with a single flat, one with five properties and a side trade.
| Single flat, simple records | A free or low-cost recognised tool may suffice |
| Five properties + sole trade | Paid software with bank feeds and multi-property support |
| Keeps detailed spreadsheets | Bridging software to file from the existing sheet |
| Both must | Choose only from HMRC’s compatible list |
There’s no universal answer — the single-flat landlord and the portfolio landlord need very different tools, but both must pick from HMRC-recognised software.
Frequently asked questions
Does HMRC provide free MTD software?
No. HMRC doesn’t build or sell software. It recognises third-party products that meet its standards — you choose one from the compatible list.
How do I find HMRC-recognised software?
Use HMRC’s official software finder tool, which gives a personalised list based on your income types and whether you want to keep spreadsheets.
Is there a single best MTD software?
No. HMRC doesn’t rank products. The best one depends on your number of properties, whether you use spreadsheets, and the automation you want.
Can I keep using spreadsheets?
Yes — with bridging software that connects your spreadsheet to HMRC through digital links. The spreadsheet itself must still meet the digital-records rules.
Is free software enough?
Sometimes, for very simple single-property landlords. But check it covers UK property income and the year-end final declaration, not just basic quarterly updates.
What must the software be able to do?
Keep digital records, send quarterly updates, and submit the final declaration — all to HMRC’s MTD for Income Tax standard.
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: 24 June 2026 · Researched against primary UK sources for the 2026/27 tax year: https://www.gov.uk/guidance/find-software-that-works-with-making-tax-digital-for-income-tax; https://www.gov.uk/guidance/choose-the-right-software-for-making-tax-digital-for-income-tax; https://makingtaxdigital.campaign.gov.uk/making-tax-digital-software/. This article is informational only and does not constitute tax advice. Check the latest details on GOV.UK or with a qualified accountant.