Software advice for HMRC MTD for Landlord

WorstDancer

We're a small landlord. We usually use our accountant to file our annual return.

With the new Making Tax Digital system we need to do quarterly updates to HMRC.

We also sell enough on eBay to need to include that as well.

Can someone point me to a software that is reasonable cheap (or free) that is MTD compatible that we can include landlord and eBay income in our MTD return?

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6669531/software-advice-for-hmrc-mtd-for-landlord

As a "small landlord and eBay trader" what is your total income?

If below £50k, you can breathe a sigh of relief for this year at least.

uknick

Look here

Find software that works with Making Tax Digital for Income Tax - GOV.UK

DRS1

Wouldn't it be a good idea to talk to your accountant about this? Or are you planning to do it all yourself?

SacredStephan

In the past I have used MyTaxDigital when MTD for VAT was introduced.

LITRG

Hi OP. You may find our recent blog useful which discusses the factors you should consider when choosing MTD software. Our software guidance page may also be helpful.

Making Tax Digital – getting to grips with software | Low Incomes Tax Reform Group

Choosing Making Tax Digital software | Low Incomes Tax Reform Group

sh_clearmtd

The main thing to think about is how complex your rental setup is. If you've just got one or two properties with straightforward income and expenses, you really don't need a full accounting package like Xero or QuickBooks — they're £30–40/month and most of the features are irrelevant for property income.

FreeAgent is worth a look if you've got a NatWest business account, since it comes free with that. It does MTD submissions and handles the quarterly updates fine.

I should be upfront — I built ClearMTD.co.uk specifically for this use case. So many landlords and sole traders just need the MTD bit without paying for a full accounting suite. It's £9/month, connects to HMRC, and handles the quarterly submissions.

Whatever software you pick, make sure it's on the HMRC-recognised list and can submit quarterly updates directly, not just act as bridging software.

There’s also free HMRC-compatible software, although it’s likely to be pretty bare bones — fine if you just need to meet the compliance requirement and nothing else.

noitsnotme

https://forums.moneysavingexpert.com/discussion/comment/82014087#Comment_82014087

Xero have a plan for sole traders and landlords which is £8.40 a month (£1.68 a month for the first 6 months). It’s called the “Simple” plan.

BTW you’re not allowed to advertise your own product on here.

penners324

Quickbooks & Zoho Books offer free accounts.

TaxSortedUK

Worth flagging on the numbers: HMRC combines your rental income with any trading income when working out whether you're over the MTD threshold, so if your eBay selling counts as trading (regular, for-profit, rather than clearing out the house) it isn't a separate limit from the property income, it gets added together. Easy to be under the line on each separately but over it combined. Worth checking your total gross figures for 2024/25 before assuming you're not in scope yet.

On software, since you don't need a full accounting suite for straightforward property income, filtering the GOV.UK list of recognised MTD software for ones that are free or cheap AND cover both property and self-employment/trading income in one place (rather than property-only tools) narrows it down fast. A few of the free options handle both.