Short answer: if your qualifying income is over the threshold, you must keep digital records and send quarterly updates through HMRC-recognised software. You can do that yourself with MTD software, from a spreadsheet using bridging software, or by giving your records to an accountant who files for you.
Who it applies to, and when
| Qualifying income over | Based on tax year | MTD starts |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
Qualifying income is your gross self-employment and property income, before expenses. Employment and pension income are not included. HMRC says more than 864,000 sole traders and landlords were in scope from April 2026. The first quarterly update for most people was due by 7 August 2026, covering 6 April to 5 July. The tax return deadline stays 31 January. HMRC has said it will not apply penalty points for late quarterly updates in the 2026 to 2027 tax year, though late tax returns and late payments are still penalised. You can check your own position with the free MTD Threshold Checker and confirm on GOV.UK.
Your four options
| Option | Typical cost | Good for |
|---|---|---|
| 1. Accountant files for you | Their fee | Anyone who wants it handled. Giving them organised records keeps the job (and often the bill) smaller |
| 2. All-in-one MTD landlord software | Hammock from £8 a month + VAT; Landlord Studio Pro from £12 a month, or free Go plan with £5 per submission; Landlord Vision from £19.97 a month + VAT (offers may apply); PaTMa Pro £15 a month | Landlords who want bank feeds and to file quarterly updates themselves |
| 3. Spreadsheet plus bridging software | Varies by bridging product | Landlords happy with spreadsheets. GOV.UK says bridging software connects to records kept in spreadsheets and can send quarterly updates |
| 4. Free MTD software | Free, with limits | GOV.UK says free products exist for simple tax affairs and may cap things like transactions |
Software prices as published by each provider on 18 October 2026. Whatever you choose, check it appears on HMRC's list of recognised MTD software; GOV.UK says all software on that list has been through HMRC's recognition process.
Where Property Clues fits
Property Clues is not MTD submission software, and it does not send anything to HMRC. What it does is the record-keeping and preparation side:
- The Landlord Expenses Tracker logs costs against SA105 categories and MTD quarters.
- The MTD for Landlords Quarterly Pack totals rent and costs by quarter, with the deadlines, and exports one Excel file for your accountant or your MTD software.
- The Rental Income & Section 24 Tax Calculator illustrates your tax, including 2027 to 2028 rates.
That makes it a fit for option 1 (organised records for your accountant) or option 3 (records you then send through bridging software). It is a one-off purchase: the Quarterly Pack is £19, or every tool is £199 on the Founder's Pass, with free tax-year updates.
Questions people ask
Do landlords have to use Making Tax Digital?
Landlords and sole traders must use MTD for Income Tax if their qualifying income (gross property plus self-employment income) was over £50,000 in 2024 to 2025 (from April 2026), over £30,000 in 2025 to 2026 (from April 2027) or over £20,000 in 2026 to 2027 (from April 2028).
When are MTD quarterly updates due?
For most people the first quarterly update covering 6 April to 5 July 2026 was due by 7 August 2026. HMRC says it will not apply penalty points for late quarterly updates in the 2026 to 2027 tax year.
Can I use a spreadsheet for Making Tax Digital?
Yes, with bridging software. GOV.UK says bridging software connects to records kept in spreadsheets and can send quarterly updates and your tax return.
Does Property Clues submit MTD updates to HMRC?
No. Property Clues organises records into SA105 boxes and MTD quarters and gives your accountant one Excel file. Submissions go through HMRC-recognised software, usually your accountant's.
What is the cheapest MTD software for landlords?
On 18 October 2026 Landlord Studio's Go plan was free for up to 3 properties with a £5 charge per submission, and Hammock started at £8 a month plus VAT. GOV.UK also says free software exists for simple tax affairs.
Sources
- GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax
- GOV.UK: Sign up for Making Tax Digital for Income Tax
- GOV.UK: Deadline approaches for first Making Tax Digital quarterly update
- GOV.UK: Choose the right software for Making Tax Digital for Income Tax
- Hammock pricing
- Landlord Studio UK comparison page (plans)
- Landlord Vision pricing
- PaTMa Property Manager pricing
- Property Clues: Making Tax Digital for landlords