Making Tax Digital and holiday let income

Understanding Making Tax Digital for property income

Making Tax Digital (MTD) affects holiday let owners who earn rental income in the UK. The regime requires digital record-keeping and quarterly updates to HMRC, replacing the traditional single annual tax return for property income. Holiday let owners must understand which filing obligations apply to them and which accounting products support these requirements.

What holiday let owners must file

The evidence provided does not detail the specific filing thresholds or requirements for Making Tax Digital for income tax and property income. Whether a holiday let owner must comply depends on their total income and the nature of their lettings business, but the exact rules are not published here.

Holiday let owners typically report rental income through self-assessment. If their property qualifies as a furnished holiday let (FHL) under UK tax rules, different conditions apply compared to standard residential lettings. The evidence does not state what those conditions are or how they affect MTD obligations.

Accounting products for UK property income

As of 28 July 2026, eight accounting products listed in this directory support UK property income reporting. All are UK-based except Xero, for which UK headquarters status is not published. Each product targets different portfolio sizes and pricing structures.

Coconut charges £49.99 per year for its MTD Bridging service, aimed at spreadsheet users. This price covers quarterly submissions, but year-end declaration costs an additional £49.99. Coconut offers a 14-day free trial and suits owners with one property or between two and five properties.

FreeAgent offers an Unincorporated Landlords plan at £10 per month excluding VAT, reduced to £5 per month for the first six months. A 30-day free trial is available. FreeAgent is listed as suitable for one property or portfolios of two to five properties.

Hammock prices its entry tier at £8 per month excluding VAT for one to three properties. The product offers a 30-day free trial and is marked as suitable for portfolios ranging from a single property up to 100 units.

Landlord Studio provides a free MTD Go plan for up to three units, charging £5 per MTD tax submission. A 14-day free trial applies. Landlord Studio is noted as appropriate for portfolios of all sizes, from one property to more than 100.

Provestor charges £99 per year including VAT for its DIY tier, equivalent to £82.50 excluding VAT. New users pay £69 including VAT in the first year. No free trial is published. Provestor supports portfolios from one property up to 20 properties.

QuickBooks (UK) offers a Sole Trader Plus plan at £10 per month excluding VAT, or £108 per year excluding VAT. A 30-day free trial is available. QuickBooks is listed for portfolios from one property through to agency and owner-managed operations.

untied charges £129.99 per year, though whether this price includes or excludes VAT is not stated. A 30-day free trial is offered. untied is suitable for one property or portfolios of two to five properties.

Xero provides a Simple plan at £7 per month excluding VAT, available only to non-VAT-registered businesses. A 30-day free trial is included. Xero supports portfolios from one property up to agency and owner-managed scales.

Choosing software for your circumstances

The directory evidence does not explain which features each product includes, how they handle quarterly MTD updates, or whether they distinguish between furnished holiday lets and standard lettings. Owners considering these products will need to confirm directly with suppliers whether the software meets their specific MTD obligations.

Portfolio size appears to guide which products are recommended. Owners with one to five properties have all eight options available. Those with six to 20 properties can choose from Hammock, Landlord Studio, Provestor, QuickBooks or Xero. Larger portfolios of 21 to 100 units are served by Hammock and Landlord Studio, while agency or owner-managed operations are listed against QuickBooks and Xero.

Pricing structures vary. Monthly subscriptions range from £7 to £10 excluding VAT. Annual plans range from £99 to £129.99, with VAT treatment unclear for untied. Landlord Studio offers a free tier with a per-submission charge, while Coconut charges separately for year-end declarations.

Whether a holiday let owner needs MTD-compliant software depends on income thresholds and business structure, details not published here. Those required to comply must keep digital records and submit quarterly updates. The eight products listed all appear in the accounting and tax category, suggesting they provide MTD functionality, but confirmation of specific features is not included in this evidence.

Further reading: Holiday Let Tax Rules UK 2026: What Airbnb Hosts Must Know

Zugrow is the property management system owned by the company that publishes this directory. It is listed here on the same terms as every competitor, with the same fields, the same checks and the same dates.

This briefing is written from the dated directory entries on this site. It is not legal, tax or financial advice.