How to choose the right software for landlord MTD

The right software for landlord MTD may be a landlord’s best friend. With Making Tax Digital for IT introducing quarterly tax submissions and digital record-keeping, landlords now need to choose software that is not only HMRC-recognised but also tailored to the unique needs of property businesses. Choosing the right solution is critical to ensure a smooth transition and minimise disruption once MTD for IT goes live.

How to pick the right software for landlord MTD

Landlords should look for MTD software that is built with rental income and expenses in mind. Here’s what to consider:

• Make sure the software is HMRC-recognised and fully compliant with MTD for IT;
• Ensure it offers automated bank feeds, so transactions are captured and categorised in real time;
• Choose a solution that provides property-level reporting, allowing you to review performance across your portfolio;
• Check that the platform includes automated tax forecast estimates, so you’re not caught out when the payment deadline approaches;
• Look for quarterly submission readiness, meaning the platform will handle your submissions with minimal manual intervention;
• Verify that the software is user-friendly and offers support or onboarding to help you get started quickly;
• Make sure that the software can manage the ownership structure of your portfolio, including joint ownership, partnerships, or properties held via a limited company;
• Make sure that the software can manage the types of tenancies in your portfolio, such as HMOs, furnished holiday lets, or social housing.

Why generic accounting software might fall short

There are general-purpose accounting platforms that support MTD, but only one that is optimised for landlords (Hammock is the first landlord software recognised by HMRC). Using software not built for property finances may result in:

• Time-consuming manual categorisation of transactions
• Confusing reports not broken down by property
• Missed allowable expenses due to limited property-specific features

Why purpose-built software matters

Software designed specifically for landlords, like Hammock, understands the structure of rental income and expenses. It provides:

• Automated categorisation of property transactions
• Property-level profit and loss views
• Real-time tax estimate forecasting
• Seamless quarterly and annual submissions under MTD for IT

Why your software for landlord MTD should speak your language

A key consideration is choosing software that speaks your language. Most general-purpose accounting platforms use broad terms like ‘accounts payable’ and ‘accounts receivable’, which may not reflect a landlord’s operational needs. Hammock replaces these with property-specific expense categories—such as council tax, gardening, letting agent fees, electricity bills, and mortgage interest. These HMRC-aligned classifications make it easier to track expenses, code transactions correctly, and produce accurate tax submissions, without needing to translate traditional accounting jargon.

Pick the right software now, enjoy the benefits after April 2026 and beyond

Choosing the right MTD-compliant software is essential to ensure a smooth transition into the new system. Look for a solution that goes beyond basic compliance and supports landlords in managing rental income and expenses efficiently. The right platform will save time, reduce errors, and improve confidence in tax reporting—especially as the MTD for IT deadlines approach.

Get ready for go-live with the right software for landlord MTD, sign up to Hammock now and get 30 days for free.

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