From 6 April 2026, landlords and sole traders earning over £50,000 must use MTD-compatible software to keep digital records and submit quarterly updates to HMRC. Choosing the right software now saves you a painful switch later.
This guide compares the three most popular options for UK landlords: Xero, QuickBooks, and FreeAgent — covering cost, features, ease of use, and suitability for property income specifically.
What Must MTD Software Do?
To qualify under HMRC’s requirements, MTD software must:
- Keep digital records of all income and expenses
- Submit quarterly updates directly to HMRC (not via manual entry on the HMRC portal)
- Produce an End of Period Statement at year end
- Link to your HMRC Government Gateway account via an authorisation handshake
All three platforms reviewed here are on HMRC’s official list of approved MTD for Income Tax software suppliers.
Xero — Best for Landlords with More Complex Needs
Pricing
- Starter: £16/month — limited invoices and bills, fine for simple rental income
- Standard: £33/month — unlimited transactions
- Premium: £47/month — multi-currency, ideal for international properties
What Xero Does Well for Landlords
- Dedicated property income tracking categories
- Bank feeds from most UK banks — transactions imported automatically
- Excellent reporting for multiple properties
- Strong accountant access — your accountant can work in the same account
- Automatic reconciliation saves hours each quarter
Limitations
- The interface has a learning curve for non-accountants
- Can feel like overkill for landlords with 1-2 properties
- Customer support is primarily chat-based — no phone line
Best for: Landlords with multiple properties, those also running a business, or anyone whose accountant already uses Xero.
QuickBooks — Best for Sole Traders and Simpler Portfolios
Pricing
- Simple Start: £14/month — one user, basic income/expense tracking
- Essentials: £28/month — bill management, three users
- Plus: £38/month — project tracking, up to five users
What QuickBooks Does Well for Landlords
- Very intuitive interface — most landlords are productive within a day
- Excellent mobile app for logging expenses on the go
- Mileage tracking built in (useful for landlords visiting properties)
- MTD for Self Assessment submissions built into the core product
- Frequent discounts — often 50% off for the first 6 months
Limitations
- Property-specific income categories are less developed than Xero
- Reporting is less flexible for multi-property portfolios
- Some UK landlords find the US-influenced interface slightly confusing at first
Best for: Sole traders who also have rental income, or landlords with 1-3 properties who want something simple and affordable.
FreeAgent — Best for Simplicity and Freelancers
Pricing
- Sole Trader: £19/month
- Limited Company: £29/month
- Free with NatWest, Royal Bank of Scotland, or Ulster Bank business accounts
What FreeAgent Does Well for Landlords
- The cleanest, most straightforward interface of the three
- Tax timeline dashboard — shows deadlines at a glance
- Real-time tax estimate so you always know what you owe
- Built-in Self Assessment and MTD submission
- Free if you bank with NatWest or RBS
Limitations
- Less suitable for landlords with large or complex portfolios
- Fewer integrations than Xero or QuickBooks
- Reporting is more basic
Best for: Sole traders with simple rental income, contractors, or anyone already banking with NatWest/RBS (who get it free).
Head-to-Head Comparison
| Feature | Xero | QuickBooks | FreeAgent |
|---|---|---|---|
| Starting price/month | £16 | £14 | £19 (free with NatWest) |
| MTD for ITSA | ✅ | ✅ | ✅ |
| Bank feeds | ✅ Excellent | ✅ Good | ✅ Good |
| Mobile app | ✅ Good | ✅ Excellent | ✅ Good |
| Multi-property support | ✅ Strong | ⚠️ Basic | ⚠️ Basic |
| Accountant access | ✅ Excellent | ✅ Good | ✅ Good |
| Ease of use | ⚠️ Moderate | ✅ Easy | ✅ Very Easy |
| Best for | Multi-property / complex | Sole traders / small portfolio | Simple rental / freelancers |
Our Recommendation for Landlords
- 1-3 properties, simple setup: QuickBooks Simple Start or FreeAgent
- 4+ properties or mixed income: Xero Standard
- NatWest/RBS business account holder: FreeAgent (it is free)
- Already working with an accountant: Ask which platform they use — working in the same system saves time and money
Do You Need Software If You Use an Accountant?
Yes. Even if you have an accountant, MTD requires you to keep digital records throughout the year — not just hand over a bag of receipts at year end. Your accountant will typically set up the software for you, connect it to HMRC, and handle the quarterly submissions. But the day-to-day record-keeping (logging rental income received, mortgage interest payments, maintenance costs) is something you will need to do — or your accountant will do under a more comprehensive package.
Not sure which software is right for your portfolio? At HS Global Accountancy, we set up and manage MTD-compatible software for landlords across the UK — including quarterly submissions so you never miss a deadline. Get a free quote or speak to us today.
