How much does MTD cost a landlord?
It can be £0. HMRC doesn’t charge for MTD and doesn’t provide its own software, but several HMRC-recognised products have free plans. Whether paid software is worth it depends on how much time it saves you.
Prices below are as published on each vendor’s website on 19 October 2026. They exclude VAT unless stated and often include time-limited promotions. We have not tested these products. Confirm before you buy.
Free options
GOV.UK confirms that “free products are available for those with simple tax affairs but there may be limits on how the product can be used, for example they could have a limited number of transactions.” Source. Examples from vendor pages:
- My Tax Digital: vendor says free for MTD Income Tax (bridging and accounting modes).
- Clear Books Property Free: vendor says forever-free, covering quarterly updates and year-end filing. Bank feeds need a paid plan.
- Zoho Books Free plan: vendor says MTD for Income Tax ready. Capped at 1,000 invoices and 1,000 expenses a year.
- Sage Sole Trader Free: records landlord income and expenses, 1 bank account, 25 auto-categorised transactions. Paid tier £7/month + VAT.
- Landlord Studio MTD Go: free for 1-3 units but charges £5 per MTD submission (so about £25 a year for 4 updates plus a return, if each is charged. Our estimate, not a vendor figure).
- FreeAgent: free if you have a NatWest, RBS, Ulster Bank or Mettle business account (conditions apply).
Paid options: published prices
| Product | Published price (19 Oct 2026) | Source |
|---|---|---|
| Hammock Basic (1-3 properties) | £8/month + VAT, or £76.80 + VAT a year | usehammock.com |
| Hammock Standard (4-10 properties) | £15/month + VAT | usehammock.com |
| Landlord Vision Starter (4 tenancies) | £7.99/month shown (higher figures also displayed; confirm) | landlordvision.co.uk |
| Landlord Studio Pro | £12 + VAT/month shown; the comparison table shows £15 + VAT (conflicting) | landlordstudio.com |
| Xero Ignite | £18/month excl. VAT; 90% off for the first 6 months for new UK customers | xero.com |
| Zoho Books Standard | £10/month billed annually (£12 monthly) | zoho.com |
Other costs to budget for
- Your time: four quarterly updates plus a return each year. Bank feeds can reduce data entry, but GOV.UK notes you may still need to add categories and fill gaps.
- An accountant or agent: optional. Prices vary widely, so get quotes. We don’t publish fee estimates.
- England landlord registration: a separate £65 per property per year from the regional rollout starting 15 December 2026. See our registration guide.
- Penalties if you’re late: from 2027-28, 4 penalty points for late quarterly updates means a £200 penalty.
Is software a tax-deductible expense?
Whether you can deduct software costs, and how, depends on your circumstances. We haven’t covered it here. For the general rules, see our guide to landlord allowable expenses. Otherwise check HMRC’s guidance or ask an adviser.
Bottom line
If you have one or two properties, few transactions and no self-employment, a free option is worth trying first. If you have several properties or want bank feeds and landlord features (rent tracking, arrears, compliance reminders), compare the paid landlord apps. Start with our picker.