Free MTD Software for UK Landlords: Why Latch Is Free

Making Tax Digital for Income Tax Self Assessment becomes mandatory from April 2026. Every affected landlord will need MTD-compatible software to keep digital records and submit quarterly updates to HMRC. But here is the problem: most MTD software charges per property, per month, and the costs add up fast.

Some providers advertise a free tier, but when you read the fine print, you discover caps at one or three properties. The moment your portfolio grows beyond that, you hit a paywall. For portfolio landlords, the annual cost of MTD software alone can run into hundreds of pounds.

Latch takes a different approach. Core MTD compliance features are included free on every plan, including the free tier, with no trial periods and no credit card required. This article explains why that matters, what you actually get, and how Latch compares to the alternatives.

The MTD Compliance Cost Problem

Under Making Tax Digital, using compatible software is not optional. HMRC requires landlords to maintain digital records and submit quarterly updates through software that connects to their MTD API. Spreadsheets alone do not comply. Paper records do not comply. You need software.

This has created a new mandatory cost for landlords. Before MTD, you could file a single self-assessment return each year using HMRC's own free online system. Under MTD, you must pay for third-party software, or find one of the rare genuinely free options.

The typical pricing model in the landlord software market is per-property, per-month. That means a landlord with 10 properties could be paying £100-200 per year just for MTD compliance, on top of any other software costs.

What Competitors Charge for MTD

We reviewed the most popular MTD-compatible software options for UK landlords. Here is what they actually cost:

As the table shows, most providers either charge from day one or impose strict limits on their free tiers. Latch includes core MTD compliance features on its free plan, with additional features like AI-powered categorisation and unlimited properties available on paid plans.

Why Most Free Options Are Not Really Free

When a software provider says MTD is free, you need to check the fine print. Here are the most common limitations:

• Property caps: Free for one property (RentalBux) or three units (Landlord Studio GO). The moment you add another property, you must upgrade to a paid plan.
• Feature restrictions: Free tiers may include basic record keeping but lock advanced features like bank feed imports, receipt scanning, or automated categorisation behind a paywall.
• Bank account requirements: FreeAgent is only free if you hold a business account with NatWest, RBS, Mettle, or Ulster Bank. If you bank elsewhere, you pay full price.
• Trial periods: Some providers offer a free trial rather than a permanent free tier. After 14 or 30 days, you must pay or lose access to your records.
• Bridging-only access: Some free tools only submit data to HMRC but do not provide record keeping. You still need separate software to maintain your digital records.

Why Latch Is Different: Free MTD Compliance

Latch was built specifically for UK landlords and designed from the ground up to meet all HMRC Making Tax Digital requirements. MTD compliance is not an upsell or a premium add-on. Core MTD features are included on every plan, including the free tier.

Here is what you get on the free plan:

Latch is designed to meet all HMRC MTD requirements for Income Tax Self Assessment. The platform handles digital record keeping, categorisation, and quarterly update preparation so you can focus on managing your properties, not your tax admin.

What Is Included Free

Here is the full list of MTD features included on Latch's free tier:

• Digital record keeping for all income and expenses
• Automatic bank feed imports via Open Banking
• Manual expense categorisation with guided workflows
• Property-level income and expense tracking
• Quarterly update summary generation
• Final declaration support
• Digital receipt storage linked to expense records
• Compliance deadline reminders
• No credit card required

How to Get Started

Getting set up for MTD compliance with Latch takes minutes, not hours. Follow these steps:

1. Sign up for a free Latch account at uselatch.co.uk. No credit card required.
2. Add your properties with addresses, purchase details, and mortgage information.
3. Connect your bank account via secure Open Banking. Latch imports your transactions automatically.
4. Review and categorise imported transactions. Latch guides you through assigning each transaction to the correct tax category.
5. Submit quarterly updates when deadlines arrive. Latch generates your summary and guides you through the submission process.

Frequently Asked Questions

Is there really no catch?

No catch on core MTD compliance. The free tier includes everything you need to keep digital records and prepare quarterly updates. There are no trial periods and no hidden charges. Premium features like AI-powered categorisation, unlimited properties, and advanced reporting are available on paid plans.

What if I already use other software?

You can import existing records into Latch or run both platforms in parallel during a transition period. Latch supports CSV imports for historical transaction data.

Will Latch work with my accountant?

Yes. You can grant your accountant read-only or full access to your Latch account. They can review your records, check your categorisation, and assist with your final declaration.