Why Small Landlords Should Use HMRC Free MTD Software Before April 2026
Making Tax Digital (MTD) is changing the way landlords in the UK report their income. From April 2026, property income will fall under mandatory MTD requirements, making it essential for small landlords to adopt the right tools early. Using HMRC free MTD software now can save time, reduce errors, and ensure a smooth transition to digital tax reporting.
Understanding the Upcoming MTD Mandate for Property Income
Previously, MTD focused primarily on VAT-registered businesses. However, HMRC has confirmed that from April 2026, all landlords earning over £50,000 in gross income must comply with Making Tax Digital for landlords . Landlords managing just one or two properties will now need to submit quarterly updates instead of relying solely on annual self-assessment returns, if they earn more than that amount.
For many, this represents a significant change. Traditional spreadsheets or manual bookkeeping methods are no longer sufficient. Missing deadlines or submitting inaccurate data can result in penalties and unnecessary stress.
How HMRC Free MTD Software Makes Compliance Easy
Using HMRC free MTD software provides an immediate solution for small landlords. Platforms like RentalBux are designed specifically to make property income reporting seamless. Key benefits include:
- Pre-built chart of accounts: Categories are tailored for property income, ensuring all entries are MTD-compliant from the start.
- Automated bank feeds and invoicing: Reduce manual entry errors and save hours of administration each month.
- Joint ownership and multiple profit-sharing support: Small landlords with shared ownership properties can easily allocate income according to agreed ratios.
- User-friendly dashboards: Even those with no accounting background can manage finances and generate MTD-ready reports effortlessly.
By using HMRC-recognised software early, small landlords can avoid the last-minute scramble that many face when the new mandate becomes mandatory.
Preparing for Multiple Portfolios
Even small landlords may manage more than one property, which can complicate record-keeping. RentalBux allows landlords to manage multiple portfolios from a single platform. With HMRC free MTD software, each property’s income and expenses are tracked separately, making quarterly submissions straightforward.
This level of organisation not only ensures compliance but also provides landlords with a clearer picture of their finances. It’s easier to make informed decisions on rent, maintenance, and tax planning when all data is structured and accurate.
Avoid Stress by Starting Early
One of the biggest advantages of adopting HMRC free MTD software now is peace of mind. By setting up digital records before April 2026, landlords can familiarise themselves with the system, correct any errors, and establish a routine for reporting.
With MTD becoming a permanent part of property management, early adoption also means landlords can benefit from automation, accurate categorisation, and timely reporting.
Conclusion
Small landlords don’t need to wait until the mandate hits. By switching to HMRC free MTD software now, property owners can streamline their accounting, avoid penalties, and prepare confidently for April 2026.