With Making Tax Digital (MTD) for Income Tax mandatory from 6 April 2026, every landlord with rental income over £50,000 must use MTD-compatible software to keep digital records and submit quarterly updates to HMRC.
Choosing the right software is one of the most important decisions you’ll make. This guide compares the three most popular MTD software options for landlords in 2026: Xero, QuickBooks Online, and FreeAgent.
Quick recommendation: For most landlords, we recommend FreeAgent (£19/month, or £12/month through HS Global Accountancy). It has the best landlord-specific features and strongest MTD compliance tools.
What MTD Software Must Do
- Keep digital records of all income and expenses
- Submit quarterly updates to HMRC via the MTD API
- Generate End of Period Statements and final declarations
- Provide an audit trail showing when records were created and modified
- Store records digitally (no paper records, no manual spreadsheets)
All three platforms meet these requirements. The differences lie in ease of use, pricing, landlord-specific features, and support.
Xero: The All-Rounder
Pricing (2026)
- Early plan: £15/month (5 invoices + 5 bills, limited features)
- Growing plan: £30/month (unlimited invoices/bills, full features)
- Established plan: £45/month (multi-currency, expenses, projects)
Most landlords will need the Growing plan at £30/month.
Landlord-Specific Features
- Built-in property management tools (track rent, tenants, properties)
- Bank feed integration with most UK banks
- Bulk invoicing for multiple tenants
- Expense tracking by property
- MTD submissions included at no extra cost
Pros: Excellent mobile app, strong ecosystem of add-ons, large accountant network, intuitive interface, automatic bank reconciliation.
Cons: More expensive than FreeAgent, some landlord features require third-party add-ons.
Best for: Landlords with 3+ properties who also run other businesses or want full accounting functionality.
QuickBooks Online: The Simplicity Choice
Pricing (2026)
- Simple Start: £14/month (basic invoicing + MTD)
- Essentials: £28/month (bill management + multiple users)
- Plus: £38/month (projects + inventory tracking)
Most landlords can use Simple Start at £14/month, making it the cheapest option.
Landlord-Specific Features
- Property income/expense tracking
- Tenant invoicing
- Bank feed connections
- MTD submissions included
- Receipt capture via mobile app
Pros: Lowest cost of the three, very simple interface, strong mobile app, excellent customer support.
Cons: Less sophisticated for complex portfolios, fewer third-party integrations, basic property management features.
Best for: Landlords with 1-5 properties who want a simple, affordable solution.
FreeAgent: The Landlord Specialist
Pricing (2026)
- Standard plan: £19/month (full features + MTD)
- Partner plan: From £12/month (when purchased through an accountant)
If you use HS Global Accountancy, we can provide FreeAgent at the discounted partner rate as part of our MTD service package.
Landlord-Specific Features
- Property-by-property profit tracking
- Tenant invoice templates
- Landlord-specific expense categories
- Mortgage interest tracking (for Section 24 calculations)
- Bank feeds for most UK banks
- MTD submissions included
Pros: Best landlord features of any platform, clean interface, excellent reporting, strong MTD compliance tools, UK-based support team.
Cons: Smaller ecosystem than Xero, less suitable for complex businesses beyond property.
Best for: Landlords who primarily earn from property and want purpose-built UK landlord tax compliance software.
Side-by-Side Comparison
| Feature | Xero | QuickBooks | FreeAgent |
|---|---|---|---|
| Price/month | £30 | £14 | £19 |
| MTD included | Yes | Yes | Yes |
| Property tracking | Good | Basic | Excellent |
| Bank feeds | Excellent | Good | Good |
| Mobile app | Excellent | Excellent | Good |
| Landlord focus | Medium | Low | High |
| Ease of use | Good | Excellent | Excellent |
Our Recommendation
At HS Global Accountancy, we work with all three platforms, but our top recommendation for landlords is FreeAgent.
- Purpose-built for UK landlords — property tracking features are unmatched
- Best value at £19/month — best features-to-price ratio
- Strong MTD compliance — built by a UK company with deep HMRC knowledge
- Partner discount available — we provide FreeAgent at £12/month as part of our service
If you’re a portfolio landlord with 10+ properties, Xero may be better. On a tight budget with a simple setup, QuickBooks at £14/month is solid.
How HS Global Accountancy Can Help
Choosing software is only the first step. Our MTD for Landlords service includes software setup and configuration, initial training, quarterly review and submission, ongoing support, and FreeAgent partner discount (£12/month instead of £19).
Ready to Get Started?
Let us help you choose and set up the right MTD software for your portfolio.
