How much does MTD software cost for landlords?

LandlordSorted is free for one property and includes MTD submissions, a rent ledger, and compliance certificate tracking. The Pro plan is £49 per year and adds unlimited properties, receipt scanning, a running tax estimate, and accountant-ready exports.

Can LandlordSorted show me how much tax I'll owe as a landlord?

Yes — the running tax estimate is available on the Pro plan (£49/year). It calculates your estimated tax liability based on gross rental income logged so far, allowable expenses, and mortgage interest relief (20% basic rate credit). It also projects your full-year figures based on your current run rate. It is an estimate only — not a formal tax calculation.

How is mortgage interest relief calculated for landlords?

Since April 2020, residential landlords cannot deduct mortgage interest directly from rental income. Instead, HMRC applies a 20% basic rate tax credit on the mortgage interest amount. LandlordSorted records your mortgage interest separately and applies the 20% credit in the tax estimate calculation.

How much tax do landlords pay on rental income? (2026 guide)

This page is general information, not tax advice. Your position depends on total income, allowances, finance costs, and other gains — use HMRC guidance or an accountant for your own calculation.

How rental profit is taxed

For many UK landlords, rental profit (income minus allowable expenses, subject to specific rules) sits alongside other income in the income tax system. The rate you pay depends on which tax bands your total income reaches once allowances are applied.

Mortgage interest relief (20% credit)

Since April 2020, residential landlords generally cannot deduct finance costs from rental income in the same way as other expenses. Instead, HMRC applies a 20% tax credit on eligible finance costs such as mortgage interest. Software should record interest separately and reflect the credit in estimates.

MTD and estimates

Making Tax Digital for Income Tax means compatible records and quarterly updates for those in scope. A running estimate in LandlordSorted Pro projects tax based on what you have logged so far — useful for cash planning, but not a substitute for formal tax computation at year-end.

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