The government has launched a new online tool to help landlords find Making Tax Digital-compatible software as the April rollout approaches. Ministers claim they are ramping up efforts to ensure landlords are ready for the controversial scheme, which requires digital record-keeping and quarterly submissions to HMRC.
New software finder targets landlords
From April 2026, landlords earning more than £50,000 from property income will be required to keep digital records and submit quarterly updates to HMRC using authorised MTD-compliant software. In response to a written parliamentary question, Treasury minister Dan Tomlinson MP outlined the government’s preparation campaign.
“The government is undertaking a range of activities to ensure those needing to use Making Tax Digital for Income Tax from April 2026 are ready and able to do so successfully,” said Tomlinson. “This includes targeted media campaigns, awareness letters, developing guidance, and working with the software industry to ensure a broad range of MTD-compatible products is available, to suit different needs and budgets.”
The new online search tool asks a series of questions tailored to sole traders and landlords before generating a personalised list of compatible software options. HMRC has previously sent warning letters to 900,000 landlords about the approaching deadline.
Critics question real benefits for landlords
Despite government claims that MTD will help landlords manage their tax affairs, industry experts remain sceptical. Accountant Simon Misiewicz has previously said: “There’s no real benefit beyond maybe streamlining some of the work you already do. Does it help with tax returns and submissions? The truth is, I can’t see how.”
The government’s own impact assessment acknowledges that landlords earning £50,000 could incur an average transitional cost of £285 and an average annual additional cost of £115. Free software options will be available for those with the simplest affairs, though critics argue this still represents an unnecessary burden. Landlords already face potential fines of up to £1,000 for incorrect contact details under the new regime.
What landlords need to do
Landlords with property income exceeding £50,000 should begin researching compatible software now. Those earning between £30,000 and £50,000 will be brought into the scheme from April 2027. Tomlinson added: “MTD will help businesses and landlords keep on top of their tax affairs. It places small businesses on a more digital footing, with digital tools helping to reduce errors and making annual tax returns easier.”
Editor’s view
The government’s claims about MTD helping landlords ring hollow when its own figures show additional costs of over £100 per year. This is digital bureaucracy dressed up as support – another cost layered onto an already burdened sector.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 17 February 2026
Sources: UK Parliament, HMRC, gov.uk
Related reading: HMRC sends MTD warning letters to 900,000 landlords
