Editor's note: This brief was summarised by The Property AI Team from a report by The Negotiator. Read the original article for full details.
Third of Making Tax Digital software cannot yet file full returns
One in three landlord Making Tax Digital products cannot yet file a full tax return, according to research of HMRC's own list. HMRC's official list of software for Making Tax Digital for Income Tax names 128 products that handle landlords' British property income.
Making Tax Digital for Income Tax was launched on 6th April 2026 for landlords and sole traders with qualifying income over £50,000. It extends to those with earnings above £30,000 from 6th April 2027.
Each landlord must send four quarterly updates and then the tax return through compatible software. The first quarterly deadline was in August and the next is a few weeks away in November. For the first year, 2026 to 2027, the tax return is due by 31st January 2028.
HMRC does not recommend any product but shows a list of compatible software in a random order. Landlords are being told to pick software from HMRC's list, and most will look at whether it sends the quarterly update.
What the analysis found
Analysis of the list by landlord software company LetCompliance shows that of the 128 eligible software products, 84 show the tax return as ready now, 32 show it as "in development" and 12 do not include it.
Of the 84, only 11 are ready now for all 16 other income types and items HMRC lists, such as bank interest, dividends and pensions.
HMRC defines "in development" as "committed to building this in time for the 2026 to 2027 tax return," which means the tools could be ready for the first full-year deadline in January 2028.
Erdem Volkan, founder of LetCompliance, says: "Landlords are being told to pick software from HMRC's list, and most will look at whether it sends the quarterly updates.
"The tax return line matters just as much. A third of the products on the list cannot yet finish the year, so a landlord choosing today should check that line, and the other income they need to report, before they sign up."
Source: The Negotiator