As part of the government’s initiative to digitalise and modernise the tax system, from April 2026, landlords will be required to use HMRC-compliant software to record rental income and expenses, and to submit quarterly updates rather than a single annual Self-Assessment.

The changes apply to:

When MTD goes live, thousands of landlords will all be trying to switch at once. Starting early means you can test software, get used to it, and avoid mistakes under pressure.

MTD-approved platforms can take some time to set up: linking bank accounts, adding properties, and tagging transactions. Doing this now gives you breathing space.

Which software we recommend will always depend on your circumstances. For some landlords, Hammock is the ideal choice because it’s purpose-built by landlords and offers property-specific features that make rental bookkeeping simple. However, for clients with wider business activities, company structures, or more complex accounting needs, Xero may be the more suitable option due to its broader functionality and integrations.