Landlord tax software helps you track rental income, manage property expenses, handle Section 24 mortgage interest correctly, and file your Self Assessment return. From April 2026 or 2027, MTD-compatible software becomes mandatory for landlords above income thresholds. This guide compares the best options for UK landlords.
Why Landlords Need Tax Software
Current Benefits
| Benefit | How It Helps | |---------|--------------| | Automatic bank feeds | Import rent and expenses without manual entry | | Expense categorisation | Sort costs into correct SA105 categories | | Section 24 calculation | Handle mortgage interest credit correctly | | Tax estimates | Know your liability throughout the year | | SA105 filing | Submit directly to HMRC | | Record keeping | Store records for 6+ years |
Future Requirements (MTD)
From April 2026 (income over £50,000) or April 2027 (over £30,000):
| Requirement | Why Software is Needed | |-------------|----------------------| | Digital records | Must be stored in compatible software | | Quarterly submissions | Software submits via HMRC API | | Digital links | No manual re-keying allowed |
Software Comparison
Quick Comparison Table
| Software | Price | Property Focus | Bank Feeds | MTD Ready | SA105 Filing | |----------|-------|----------------|------------|-----------|--------------| | TaxFolio | From £69.99/year | Yes | Yes | Yes | Yes | | FreeAgent | From £14.50/month | Partial | Yes | Yes | Yes | | QuickBooks | From £12/month | Partial | Yes | Yes | Yes | | Xero | From £14/month | Partial | Yes | Yes | Yes | | Hammock | From £12/month | Yes | Yes | Yes | Yes | | GoSimpleTax | From £58.50/year | No | No | Limited | Yes | | HMRC Online | Free | No | No | No | Yes |
TaxFolio
Overview
TaxFolio is UK-focused tax software designed for self-employed individuals and landlords. It prioritises simplicity and tax compliance over full accounting features.
Features
| Feature | Details | |---------|---------| | Bank connection | Open Banking via TrueLayer (all UK banks) | | AI categorisation | Transactions sorted automatically | | Property tracking | Manage multiple properties | | Section 24 | Mortgage interest handled correctly | | SA105 filing | Direct submission to HMRC | | MTD ready | Quarterly submissions supported | | Record storage | 6+ years retained |
Pricing
| Plan | Price | Includes | |------|-------|----------| | Standard | £69.99/year | Self Assessment + MTD | | Property | £89.99/year | Enhanced property features |
Best For
- Landlords wanting simplicity
- Tax-focused (not full accounting)
- Budget-conscious users
- Those preparing for MTD
Pros and Cons
| Pros | Cons | |------|------| | Tax-focused design | No invoicing features | | Affordable annual price | Newer product | | AI categorisation | Less established brand | | Bank feeds included | | | MTD-ready | |
FreeAgent
Overview
FreeAgent is comprehensive accounting software popular with freelancers and small businesses. It includes property income tracking alongside full accounting features.
Features
| Feature | Details | |---------|---------| | Bank feeds | All major UK banks | | Invoicing | Professional invoice creation | | Property income | Track rental properties | | Expenses | Full expense management | | Self Assessment | SA100, SA103, SA105 | | MTD | Income Tax and VAT | | Reports | Profit/loss, balance sheet |
Pricing
| Plan | Price | Includes | |------|-------|----------| | Sole Trader | From £14.50/month | Full features | | (NatWest/RBS customers) | Free | Via partnership |
Best For
- Landlords with multiple income streams
- Those needing invoicing
- Full accounting requirements
- NatWest/RBS customers (free access)
Pros and Cons
| Pros | Cons | |------|------| | Comprehensive features | More expensive | | Well-established | Can be complex for simple needs | | Free for some bank customers | Property features not the focus | | Strong support | |
QuickBooks Self-Employed
Overview
QuickBooks is a globally recognised accounting brand. The Self-Employed version is designed for sole traders and includes property income tracking.
Features
| Feature | Details | |---------|---------| | Bank feeds | Major UK banks | | Expense tracking | Automatic categorisation | | Mileage tracking | Built-in tracker | | Receipt capture | Mobile app scanning | | Self Assessment | Via integration | | MTD | Income Tax supported | | Tax estimates | Quarterly projections |
Pricing
| Plan | Price | Includes | |------|-------|----------| | Self-Employed | From £12/month | Core features | | Self-Employed Tax | From £18/month | + Tax bundle |
Best For
- Those familiar with QuickBooks brand
- Users wanting established software
- Multi-platform users (US/UK)
Pros and Cons
| Pros | Cons | |------|------| | Recognised brand | Subscription adds up annually | | Mobile app | US-focused company | | Mileage tracking | Property not the primary focus | | Good interface | |
Xero
Overview
Xero is cloud accounting software popular with accountants and small businesses. It's comprehensive but may be more than landlords need.
Features
| Feature | Details | |---------|---------| | Bank feeds | Extensive UK coverage | | Invoicing | Full invoicing suite | | Expense claims | Employee and contractor | | Fixed assets | Depreciation tracking | | Reports | Comprehensive reporting | | MTD | VAT and Income Tax | | Integrations | Large app marketplace |
Pricing
| Plan | Price | Includes | |------|-------|----------| | Starter | £14/month | Limited features | | Standard | £30/month | Full features | | Premium | £42/month | Multi-currency, projects |
Best For
- Landlords with complex accounting needs
- Those working with accountants
- Multiple business entities
- Users needing extensive integrations
Pros and Cons
| Pros | Cons | |------|------| | Very comprehensive | Complex for simple landlords | | Strong accountant support | Higher price point | | Many integrations | Property not primary focus | | Good reporting | May need accountant to set up |
Hammock
Overview
Hammock is landlord-specific software designed for property income and expenses. It focuses entirely on the landlord market.
Features
| Feature | Details | |---------|---------| | Property focus | Built specifically for landlords | | Bank feeds | UK banks supported | | Expense tracking | Property-specific categories | | Tenant management | Basic tenant records | | Section 24 | Handled correctly | | SA105 | Property pages filing | | MTD | In development |
Pricing
| Plan | Price | Includes | |------|-------|----------| | Essential | £12/month | Up to 3 properties | | Professional | £24/month | Unlimited properties |
Best For
- Landlords only (no other self-employment)
- Those wanting property-specific features
- Portfolio landlords
Pros and Cons
| Pros | Cons | |------|------| | Landlord-specific | More expensive than generic options | | Property-focused design | Limited features beyond property | | Tenant tracking | Smaller company | | Section 24 built-in | |
GoSimpleTax
Overview
GoSimpleTax is basic tax return software focused on Self Assessment filing. It's straightforward but lacks bank feeds and ongoing tracking.
Features
| Feature | Details | |---------|---------| | Tax return filing | SA100, SA103, SA105 | | Guidance | Step-by-step help | | Tax calculation | Shows liability | | HMRC submission | Direct filing |
Pricing
| Plan | Price | Includes | |------|-------|----------| | Basic | From £58.50/year | Filing only |
Best For
- Simple Self Assessment only
- Those comfortable with manual record keeping
- Budget-focused users
Pros and Cons
| Pros | Cons | |------|------| | Low cost | No bank feeds | | Simple interface | No ongoing tracking | | Good guidance | Manual data entry | | | Not MTD-ready for quarterly |
HMRC Online
Overview
HMRC's free online service for filing Self Assessment. No cost, but no features beyond basic filing.
Features
| Feature | Details | |---------|---------| | Tax return filing | SA100 and supplementary pages | | Tax calculation | Shows what you owe | | HMRC submission | Direct | | Cost | Free |
Best For
- Very simple tax affairs
- Those comfortable with manual record keeping
- Budget-limited users
Pros and Cons
| Pros | Cons | |------|------| | Free | No bank feeds | | Direct to HMRC | No expense tracking | | No subscription | No receipt storage | | | Basic interface | | | Not MTD-compatible for quarterly submissions |
Feature Comparison
Property-Specific Features
| Feature | TaxFolio | FreeAgent | QuickBooks | Hammock | |---------|----------|-----------|------------|---------| | Multiple property tracking | Yes | Yes | Limited | Yes | | Property-level reporting | Yes | Basic | Basic | Yes | | Section 24 calculation | Yes | Yes | Yes | Yes | | Tenant records | Basic | No | No | Yes | | Rent reminders | No | No | No | Yes |
Tax Features
| Feature | TaxFolio | FreeAgent | QuickBooks | Hammock | |---------|----------|-----------|------------|---------| | SA105 filing | Yes | Yes | Via partner | Yes | | SA103 (self-employment) | Yes | Yes | Yes | No | | Tax estimates | Yes | Yes | Yes | Yes | | MTD quarterly | Yes | Yes | Yes | In dev |
Usability
| Feature | TaxFolio | FreeAgent | QuickBooks | Hammock | |---------|----------|-----------|------------|---------| | Bank feed setup | Easy | Easy | Easy | Easy | | AI categorisation | Yes | Limited | Yes | No | | Mobile app | Yes | Yes | Yes | Yes | | Learning curve | Low | Medium | Medium | Low |
Making Your Choice
Choose TaxFolio If:
- You want tax-focused simplicity
- Budget is a consideration (annual fee vs monthly)
- AI categorisation appeals to you
- You're preparing for MTD
Choose FreeAgent If:
- You have multiple income streams (not just property)
- You need invoicing features
- You bank with NatWest/RBS (free access)
- You want comprehensive accounting
Choose QuickBooks If:
- You're familiar with the brand
- You want established software
- You need mileage tracking built-in
- You prefer a well-known name
Choose Hammock If:
- You're a dedicated landlord only
- You want property-specific features
- You have multiple properties
- Tenant management matters
Choose GoSimpleTax If:
- You just need to file a return
- You're comfortable with manual tracking
- Budget is the priority
- Your tax situation is simple
Preparing for MTD
Whatever software you choose, ensure it's MTD-compatible:
| Requirement | Check | |-------------|-------| | On HMRC's recognised list | HMRC software list | | Quarterly submissions | Can submit every 3 months | | Digital records | Stores records electronically | | Bank feeds | Automatic transaction import |
Start using software now—don't wait until MTD becomes mandatory.
Get Started with TaxFolio
TaxFolio is built for UK landlords:
- Open Banking — all UK banks via TrueLayer
- AI categorisation — expenses sorted automatically
- Section 24 — mortgage interest handled correctly
- Multiple properties — manage your portfolio
- SA105 filing — submit directly to HMRC
- MTD-ready — quarterly submissions supported
- From £69.99/year — affordable annual price
Start your free 30-day trial and see why landlords choose TaxFolio.
Summary: Choosing Landlord Software
| Your Situation | Recommended | |----------------|-------------| | Simple, tax-focused, budget-conscious | TaxFolio | | Multiple income types, need invoicing | FreeAgent | | Familiar with brand, want established | QuickBooks | | Landlord-only, want property features | Hammock | | Just need to file, manual tracking OK | GoSimpleTax | | Very simple, free is essential | HMRC Online |
Key considerations:
- Is it MTD-compatible?
- Does it connect to your bank?
- Does it handle Section 24 correctly?
- What's the total annual cost?
- Is it simple enough for your needs?