Best MTD Compatible Software for Landlords in 2026

Making Tax Digital (MTD) might sound a bit overwhelming at first, but it’s really just about moving the UK tax system into the digital age. Instead of dealing with piles of paperwork or endless spreadsheets, HMRC now wants everything to be filed online through approved software. The good news? There are loads of MTD-compatible options out there—whether you’re a landlord, a small business owner, or someone who just prefers keeping things simple with spreadsheets. From easy bridging tools to full accounting packages, there’s something for everyone. The key is finding software that fits your way of working, so tax doesn’t feel like such a headache.

The April 2026 and 2027 deadlines for MTD for Income Tax are approaching, and it is essential to choose the right MTD Compatible software.

But there are so many software providers in the market, and picking the right one can feel overwhelming. So, the safest approach is to start with HMRC-approved MTD-compatible Software and select the one that best fits your income type, pricing, and required features.

We have compiled a list of all HMRC-approved Software along with key details to help you decide. You can use our detailed overview of each Software and the final summary table to choose the best option for your needs.

1. RentalBux

RentalBux is an all-in-one platform that helps landlords manage properties, tenants, finances and tax complaince. It’s now HMRC-approved for UK property income and will soon support self-employment and foreign property income. RentalBux stands out for it’s comprehensive functionalities that gives landlord everything they’d ever need in one integrated platform. 

2. 123 Sheets

123 Sheets is HMRC-approved bridging Software for VAT and Income tax. It connects existing spreadsheet workflows directly to HMRC systems without forcing users to learn complex accounting software or abandon their existing tools. It is particularly useful for small business owners, accountants, and sole traders who prefer spreadsheet-based accounting.

@Coconut

Coconut is an invoicing and expense management platform that also provides features for MTD compliance. Its main motto is to make financial management easy for freelancers without the complexity of traditional accounting software. It simplifies bookkeeping with a mobile-first approach, real-time bank integration, and intelligent transaction categorisation.

4. Absolute Excel Income Tax Filer

Absolute Excel Income Tax Filer is a bridging Software that allows digital filing without changing the existing Excel workflow. It is a cost-effective solution for sole traders and landlords who want to comply with MTD while still using Excel or spreadsheets. Over one million successful VAT submissions back the absolute Excel Income Tax Filer.

5. Andica Accounting Software

Andica Accounting Software is an easy-to-use bookkeeping solution for small businesses and accounting practices. It combines real-time financial performance tracking with MTD and offers a straightforward yet comprehensive accounting solution.

6. ApariPro

ApariPro is an MTD-compatible self-assessment Software. It creates digital records and provides bridging functionality for HMRC submissions. ApariPro supports both quarterly updates and direct tax return filing.

7. Capium Limited — MTD for IT

Capium is cloud-based accountancy software that offers comprehensive MTD support and full practice management solution. It aims to make the transition to HMRC’s digital tax system easy for accountants and help them effectively prepare clients for MTD compliance.

8. Clear Books

Clear Books is award-winning online accounting software for small businesses in the UK. It supports MTD for Income Tax, MTD VAT, CIS, and payroll. It also has multi-currency support and is particularly useful for limited companies, charities, partnerships, and sole traders.

9. Clear Books Free

Clear Books Free is the no-cost version of Clear Books. It is ideal for sole traders and landlords with basic needs. It provides essential MTD features like digital record keeping, tax filing, and professional-grade accounting for free.

10. Forbes MTD

Forbes MTD provides bridging Software and full bookkeeping solutions for businesses using Excel, Sage, VT Transaction+, or other packages. It allows companies to maintain existing workflows while still achieving MTD compliance.

Conclusion

Choosing the right MTD-compatible software really comes down to your own situation.

If you’re a landlord managing multiple properties, a platform like RentalBux or Hammock might give you everything in one place. Prefer sticking with spreadsheets? Tools like 123 Sheets or Absolute Excel Filer will let you keep your workflow while still being compliant. And if you want a full accounting package that covers everything from invoicing to VAT, options like Clear Books, QuickBooks, or Xero are worth considering.

With the April 2026 and 2027 deadlines around the corner, now is the best time to test out free trials, explore the features, and see which software actually makes your life easier. At the end of the day, the goal of MTD is to simplify tax—not add extra stress—so the right software should feel like a helping hand, not a hurdle.