THE PROPERTY FILTER TAKE
Research by LetCompliance, reported by PropertyWire, finds 44 of the 128 Making Tax Digital products HMRC lists for property income cannot yet file a complete tax return.
The number that matters: of the 84 products showing the return as ready, only 11 can currently handle all 16 other income types HMRC lists, such as bank interest and dividends.
Before you sign up or switch, consider checking your software's tax return line and every other income type you report, and speak to your accountant.
One in three software products approved for Making Tax Digital cannot yet file a complete tax return for landlords. That is the finding of research by landlord software company LetCompliance, reported by PropertyWire on 7 October 2026. Of the 128 products HMRC lists for handling property income, 44 either have the tax return function still in development or do not include it at all.
What did the research find?
According to PropertyWire, 84 products show the tax return function as ready, 32 list it as "in development" and 12 do not include it. Those three groups add up to the 128 on HMRC's list. Bear in mind the research comes from a company that sells landlord software, so treat it as a firm's own count rather than an HMRC figure.
The bigger gap is other income. Of the 84 products showing readiness, only 11 can currently handle all 16 other income types listed by HMRC, including bank interest, dividends and pensions (PropertyWire, 7 October 2026). That is fewer than one in ten of the full list, on our arithmetic.
PropertyWire reports that HMRC defines "in development" software as committed to building the function in time for the 2026-2027 tax return. LetCompliance founder Erdem Volkan put it simply: "The tax return line matters just as much."
Which Making Tax Digital deadlines are still ahead?
Making Tax Digital for Income Tax (HMRC's system for reporting self-employment and property income through compatible software) started on 6 April 2026. According to HMRC's eligibility guidance, it applies first to landlords and sole traders whose qualifying income was over £50,000 for 2024 to 2025. The threshold is £30,000 from 6 April 2027 and £20,000 from 6 April 2028.
Quarterly updates are summaries of your income and expenses, not tax returns. On HMRC's quarterly update guidance, the first deadline was 7 August and has passed. The next covers 6 April to 5 October and is due on 7 November. HMRC says it will not apply penalty points for late quarterly updates during 2026 to 2027, though they still apply to late tax returns.
According to PropertyWire, the tax return for 2026 to 2027 must be filed by 31 January 2028, through your software. If you are setting up digital records for the first time, our guide to running a property business with proper systems covers the groundwork.
What does this mean for a landlord choosing software?
For example, take a landlord with £60,000 of qualifying property income who also earns bank interest and dividends. Remove the 44 products that cannot yet file a full return and 84 remain. Only 11 of those cover all 16 other income types. For the other 73, the landlord needs to check that their own income types are on the list. Separately, our free property investment calculators can help you check the numbers on each property before tax.
HMRC's tax return guidance helps here. HMRC says it adds pension income it holds, but you add savings interest and dividends yourself. So your software needs to accept those entries.
You can use more than one product, says HMRC's software guidance, for example one for quarterly updates and another for the tax return. Bridging software (a tool that links your spreadsheets to HMRC) is one option. The products then need to work together.
Before you commit, you may wish to list every income type on last year's return and test it against the software's features. Our free property resources hub has further tools for landlords. And speak to your accountant before you choose: they will know which income types your return needs.
Key takeaways
Research by LetCompliance, reported by PropertyWire, finds 44 of 128 Making Tax Digital products for property income cannot yet file a complete tax return.
Of the 84 products showing the tax return as ready, only 11 can currently handle all 16 other income types HMRC lists, including bank interest, dividends and pensions.
The next quarterly update, covering 6 April to 5 October, is due on 7 November, according to HMRC.
HMRC will not apply penalty points for late quarterly updates in 2026 to 2027, but late tax returns still attract points.
The threshold falls from £50,000 to £30,000 from 6 April 2027 and to £20,000 from 6 April 2028.
Frequently asked questions
Can every Making Tax Digital product file my tax return?
When is the next quarterly update due?
Will I get a penalty for a late quarterly update this year?
When must the 2026 to 2027 tax return be filed?
Can I use two software products?
