THP’s Platinum MTD Service with FREE Landlord Software

Looking for free MTD compliant landlord software?

A comprehensive package that will help you manage your buy-to-let portfolio?

If the answer is ‘YES!’ then look no further.

As The Landlord’s Accountants, THP has teamed up with Hammock – the Making Tax Digital compliant software made by landlords for landlords.

  • Free MTD Landlord Management Software
  • Your own buy-to-let specialist accountant working for you
  • Access to landlords’ advanced tax planning services
  • Preparation of annual Self-Assessment tax returns for you and your spouse/partner
  • And much, much more…

HMRC has just released a new policy paper on Making Tax Digital for Income Tax (MTD for Income Tax). In it, the taxman estimates that MTD for Income Tax will cost some landlords and sole traders £350 to implement. The paper also highlights ongoing costs of complying. In this article, we look at what these costs are and how you could keep them down.

What is MTD for Income Tax

If you are a landlord or sole trader, you will almost certainly be aware of MTD for Income Tax. If not, take a look at our helpful guide to MTD and our blog post on MTD for landlords and the self-employed.

Essentially, Making Tax Digital is all about moving to a system of digital tax records and returns. When MTD for Income Tax becomes compulsory, you’ll need to use approved software to submit your Self-Assessment Tax Return. You’ll need to report quarterly, although the tax you owe will be due on the same dates. Your main bill will be due on 31st January each year, while your payment on account should be paid by 31st July.

When does Making Tax Digital for Income Tax become compulsory?

MTD for Income Tax is now being introduced in two stages. The date you need to comply depends on your income.

  • April 2026 for people with qualifying income of over £50,000
  • April 2027 for people with qualifying income of over £30,000

HMRC believes that moving to digital record keeping will help close the tax gap. This is the difference between the tax people owe and the amount that is paid.

What will MTD for Income Tax cost you?

HMRC estimates that the transitional cost of MTD for Income Tax for businesses will be £561 million. It also estimates the continuing costs of compliance at £196 million per year.

Before we break those costs down for individuals and businesses, let’s look at what they are.

According to HMRC, transitional costs could include:

  • Time spent getting familiar with MTD obligations
  • Training
  • Buying new hardware or upgrading existing hardware
  • Additional accountancy costs

Ongoing costs could include:

  • Subscriptions to MTD-compliant accounting software
  • Additional time spent making quarterly updates
  • The cost of bridging software to provide MTD compatibility for people who want to carry on using spreadsheets
  • Marginal increases in some existing software costs to provide MTD compatibility.

HMRC estimates that the average transitional cost for a landlord or sole trader will be £320. The average annual cost will be £110.

However, the taxman has also broken these costs into two cohorts. If your income is within the £30,000 to £50,000 threshold, your average transitional cost will be £350. The average ongoing cost per year will be £110.

If your income is above £50,000, the average transitional cost will be £285. The ongoing cost will even out at £115 per year.

How do I keep MTD costs low?

For most people, the main cost will be MTD-compliant accounting software. However, there are ways to save money on this. Some business bank accounts give you free access to cloud accounting software. That said, if yours doesn’t, it can be a hassle switching bank accounts.

In these cases, THP can help you. If you are a sole trader and you ask us to take care of your Self-Assessment Tax Return, we offer you free access to the popular Freeagent accounting software. If you are a landlord who signs up to our Landlord Platinum Service for MTD, you’ll get free access to Hammock. This is specialist cloud accounting software built with the needs of landlords in mind.

While the MTD for Income Tax deadline dates may seem a way off yet, it’s a smart idea to get MTD compliant now. If you’d like any help in making the transition to MTD, get in touch with one of our friendly accountants today.

Need further advice on any of the topics being discussed? Get in touch and see how we can help.

    By submitting this form you agree to our Privacy notice and Terms and conditions.
    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    Avatar for Karen Jones
    About Karen Jones

    Having worked for one of the world’s largest accountancy firms, Karen Jones uses her tax knowledge and skills to help clients obtain substantial reductions to their tax liabilities.

    With an expanding portfolio of tax clients, Karen enjoys the variety her work brings her and particularly likes working with new businesses and people. With a growing number of tax clients, she frequently faces a variety of challenges and relishes the experience she gains as she solves them.

    Karen likes the THP ethos: “I like the way the team has a professional, but friendly and down-to-earth approach – it creates a productive atmosphere that benefits everyone.”

    Karen’s specialist skills:

    • Personal Taxation
    • Tax Efficient Planning
    • Trust Administration
    Join The Conversation
    Cyber Essentials Plus certification
    Green Mark certification
    Sign up for our Newsletter