Xero vs QuickBooks for Landlords (MTD 2026): Which Should You Pick?
Last updated 24 June 2026 · 9 min read · By the LandlordTaxAi Editorial Team
The short answer
Both Xero and QuickBooks are HMRC-recognised and handle MTD for landlords, but they differ in approach. QuickBooks has a low-cost sole-trader tier suited to a single-property landlord; Xero handles multiple properties and mixed income more flexibly and is the favourite among UK accountants. Pricing changes often — always check current rates.
Xero and QuickBooks are the two biggest names landlords consider for Making Tax Digital — both are general accounting platforms adapted for MTD for Income Tax. Neither is built solely for property, so the real question is which fits your portfolio and budget.
This guide compares them on the points that matter to landlords for 2026. Pricing and feature tiers shift frequently, so treat the figures as a guide and confirm current details with each provider. For the wider market, see MTD software for landlords.
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MTD Threshold Checker
See whether you need MTD software like Xero or QuickBooks, and from when.
Result
- Total qualifying income
- £28,000
- You must use MTD for Income Tax
- From 6 April 2028
Both are HMRC-recognised. Pricing changes — check current rates. Estimate only.
How each handles property income
This is the biggest practical difference for landlords. Property income has its own quirks — multiple properties, a single UK-property income source for MTD — and the two platforms approach it differently.
Xero treats UK property as one income source and uses tracking categories to separate individual properties, with higher tiers supporting separate submissions for different income types. QuickBooks’ lowest sole-trader tier is aimed at a single-property landlord; multiple properties or mixed income generally mean stepping up to a higher plan.
If you have several properties or also have self-employment income, check exactly which tier you’d need on each platform — the entry price isn’t always the price you’ll actually pay.
Pricing tiers (check current rates)
Both run tiered monthly subscriptions, often with introductory discounts. The figures below are indicative at the time of writing and change regularly — always confirm on the provider’s site before deciding.
| Platform | Entry tier (indicative) | Best suited to |
|---|---|---|
| QuickBooks Sole Trader | Lower-cost entry, single property | One property, simple records |
| Xero (entry/Simple tier) | Low monthly entry tier | Simple landlords; scales up well |
| Higher tiers (both) | More per month | Multiple properties, mixed income, multi-submission |
Introductory prices (e.g. a few months at a discount) often rise afterwards. Budget for the standard price and the tier you’ll actually need, not the headline offer.
Other factors: bank feeds, accountants, final declaration
Beyond price and property handling, a few practical points often decide it.
- Accountant support: Xero has very wide adoption among UK accountants, which helps if yours uses it
- Bank feeds: both connect to bank accounts to import transactions and cut manual entry
- Final declaration: across most platforms the year-end final declaration (covering non-property income) is still maturing through 2026/27 — check the current state
- Learning curve: both are full accounting tools, so there’s more to learn than with a landlord-only app
If your accountant already uses one of them, that’s a strong reason to match — shared access makes year-end far smoother.
A landlord-first alternative
If you want software built for property rather than general accounting, LandlordTaxAi turns your bank statements into categorised, MTD-ready figures — no accounting know-how needed.
See how it worksA worked example
Two landlords weigh up Xero vs QuickBooks for April 2026.
| Single flat, no accountant, cost-conscious | QuickBooks sole-trader tier often cheapest |
| Three properties, wants room to grow | Xero’s property handling scales better |
| Uses an accountant on Xero | Xero, for shared access |
| Also has self-employment income | Check the higher tier on either platform |
There’s no outright winner — the single-flat, cost-focused landlord and the growing-portfolio landlord land on different answers. Match the tool to your situation.
Frequently asked questions
Is Xero or QuickBooks better for landlords?
Neither is universally better. QuickBooks’ sole-trader tier suits a single-property landlord on cost; Xero handles multiple properties and mixed income more flexibly and is widely used by accountants.
Are both HMRC-recognised for MTD?
Yes — both Xero and QuickBooks are on HMRC’s compatible software list for MTD for Income Tax.
Which is cheaper?
QuickBooks often has a lower entry tier for single-property landlords, but pricing changes frequently and the tier you actually need matters more — always check current rates.
Do they handle multiple properties?
Xero uses tracking categories to separate properties within one UK-property source and scales to multi-submission on higher tiers. QuickBooks usually needs a step up from its basic sole-trader tier.
Do they support the final declaration?
Quarterly updates work now; the year-end final declaration (covering non-property income) is still maturing across most platforms through 2026/27 — verify the current position.
Should I match my accountant’s software?
Often yes. If your accountant uses Xero or QuickBooks, choosing the same one makes shared access and year-end much smoother.
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. This article is informational only and does not constitute tax advice. Check the latest details on GOV.UK or with a qualified accountant.