Free Making Tax Digital software for Landlords: What Changes and What to Do Now
GetGround’s free HMRC-recognised software ensures landlords understand MTD for ITSA phases, thresholds, and the practical requirements of digital records and quarterly submissions.
Making Tax Digital for landlords represents the largest structural change to property tax reporting in UK history. From April 2026, hundreds of thousands of landlords must abandon spreadsheets and annual self-assessment in favour of digital record-keeping and quarterly submissions.
Timelines: When MTD for ITSA Takes Effect
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) rolls out in phases based on income thresholds[1]:
Phase 1: April 6, 2026
Applies to landlords whose gross property income (combined with any self-employment income) exceeded £50,000 in the 2024-25 tax year. If your total rental income before expenses was above this threshold, you must comply from April 2026.
Phase 2: April 6, 2027
The threshold drops to £30,000. Landlords earning between £30,000 and £50,000 annually must adopt digital reporting from this date.
Phase 3: April 6, 2028
The threshold drops to £20,000. Landlords earning above £20,000 annually will need to comply from this date, bringing approximately 900,000 additional people into scope and covering approximately one-third of all UK landlords.
The government confirmed in the 2025 Spring Statement the “continued rollout of Making Tax Digital for income tax,” ending speculation about further delays.
Scope and Exemptions: Who This Applies To
MTD for ITSA applies to individual landlords who own property personally and file Income Tax Self Assessment returns. This includes sole owners, joint owners, and partnerships of individuals.
Exemptions:
- Rental income for properties held through limited companies are exempt. Companies file Corporation Tax returns, which follow different rules.
- Landlords below the income threshold for their phase are exempt until their income rises or the threshold drops.
- Certain exemptions exist for individuals unable to engage digitally due to age, disability, or remote location, though these require application.[2]
If you currently complete a self-assessment tax return for rental income and earn above the thresholds, assume MTD for ITSA applies to you.
Key Obligations: What “Digital Records” and “Quarterly Updates” Actually Mean
The legislation introduces two core requirements that replace traditional annual self-assessment:
Digital Record-Keeping
“Digital records” means maintaining an electronic audit trail of every rental income and expense transaction throughout the tax year, this must be done using HMRC-recognised software.
Each transaction requires:
- Date and amount
- Category (rent received, repairs, agent fees, mortgage interest, etc.)
- Property it relates to
- Supporting documentation (receipts, invoices, bank statements)
GetGround’s HMRC-recognised platform automates this through Open Banking integration, which imports transactions in real-time, and AI categorisation, which automatically assigns each transaction to the correct category for tax treatment.
Quarterly Updates
“Quarterly updates” means submitting summary income and expense figures to HMRC four times per year, rather than once annually. The quarterly periods align with the tax year, and submissions must be made through HMRC-recognised software via secure API connection.
These updates are not tax payments, they’re information submissions that help HMRC track your tax position throughout the year. The quarterly system replaces the traditional annual self-assessment filing, though you’ll still need to complete year-end processes and make actual tax payments according to existing schedules (typically 31 January following the tax year end).
GetGround’s Basic (free), Core and Complete subscription plans include quarterly filing support and built-in assistance to ensure you never miss a deadline.
Minimum Setup for 2025-26 Tax Year
If you’re in Phase 1 (income over £50,000), you need to be operational by April 6, 2026. Here’s the minimum setup:
1. Choose HMRC-recognised software
Only software on HMRC’s recognised list meets the technical requirements for MTD for ITSA submissions.[3] GetGround’s platform is HMRC-recognised and includes MTD compliance at no cost, while other providers can charge up to £10-30 per month.
2. Sign up for MTD on HMRC’s website
You must register for MTD for ITSA through your Government Gateway account. This authorises your chosen software to submit updates on your behalf via secure API connection.
3. Connect your bank accounts
Open Banking integration automatically imports rental income and expense transactions, eliminating manual data entry. Connect the bank accounts where rent is received and property expenses are paid.
4. Categorise transactions correctly
Each transaction must map to HMRC’s tax categories. GetGround’s AI categorisation handles this automatically, learning from millions of property transactions to assign the correct category, received, repairs and maintenance, insurance, mortgage interest, professional fees, etc.
5. Attach digital receipts
Upload photos or PDFs of receipts, invoices, and statements. These provide the audit trail HMRC expects if they question a deduction. GetGround’s platform includes digital receipt storage linked to each transaction.
6. Submit quarterly by the deadline
Review your categorised transactions each quarter and submit the summary to HMRC via your software. GetGround includes automated reminders and penalty prevention messaging to ensure you never miss a deadline.
Why This Matters Now
With over 30,000 property investors from 80+ countries managing over £2 billion in UK property through GetGround, the platform has processed millions of rental transactions and refined its MTD-compliant workflows specifically for landlords.
Making Tax Digital for landlords isn’t just a compliance obligation, it’s an opportunity to modernise your financial operations in ways that provide year-round visibility into portfolio performance, enable faster investment decisions, and ensure you claim every allowable deduction correctly.
Ready to prepare for MTD for ITSA? GetGround is the UK’s only property investment platform built for every stage of a landlord’s journey. Our HMRC-recognised MTD solution is included free, combining Open Banking, AI categorisation, and quarterly submission support to keep your records compliant and your property investment as efficient as possible.
This is for your information only – you shouldn’t view this as legal advice, tax advice, investment advice, or any advice at all.
Terranova.Network Limited (trading as GetGround) is a registered Agent of Yapily Connect Ltd for the purpose of providing Account Information Services under the Payment Services Regulations 2017. Yapily Connect Ltd is authorised by the UK Financial Conduct Authority (FRN 827001).
