Latch vs Hammock for MTD: Free Compliance Software Compared
Hammock and Latch both target UK landlords needing MTD compliance. Compare their approaches to digital records, quarterly submissions, pricing, and free access.
The Latch Team
Editorial
Hammock and Latch both target UK landlords who need Making Tax Digital compliance. Hammock positions itself as a specialist landlord tax tool built specifically around MTD and Self Assessment. Latch is a broader property management platform that includes MTD compliance alongside tenant management, maintenance, and compliance tracking.
The critical difference is access. Hammock charges from day one with plans starting around £5 to £10 per month and no free tier. Latch includes all core MTD features free for up to 3 leases. For landlords with smaller portfolios, this is the difference between paying £60 to £120 per year for compliance and paying nothing.
This comparison focuses on what matters for MTD: digital records, quarterly submissions, HMRC integration, categorisation, and the bottom line cost of staying compliant.
Quick MTD Comparison: Latch vs Hammock
| Feature | Latch | Hammock |
|---|---|---|
| Free MTD Access | Yes — all core MTD features free for up to 3 leases | No — no free tier, paid from day one |
| Digital Record Keeping | Yes — HMRC-compliant digital records | Yes — HMRC-compliant digital records |
| Quarterly Submissions | Yes — quarterly summary generation | Yes — quarterly update preparation |
| HMRC API Integration | Yes — direct HMRC submission | Yes — direct HMRC submission |
| Bank Feed Integration | Yes — Open Banking with AI reconciliation | Yes — Open Banking integration |
| AI Categorisation | Yes — Matt the AI agent (paid plan) | Automated categorisation rules |
| Self Assessment Generation | MTD quarterly and annual returns | Full Self Assessment tax return generation |
| Property Management | Yes — full platform (tenants, maintenance, compliance) | No — tax and accounting focus only |
| Compliance Tracking | Gas, EPC, EICR, deposit protection reminders | No — no property compliance features |
| Tenant Portal | Yes — maintenance, payments, documents | No — no tenant-facing features |
MTD Pricing Comparison
Latch Free
£0
forever
Up to 3 leases, all core MTD features included
Latch Pro
£20
per month
Up to 8 leases, Matt AI agent, full property management
Latch Enterprise
£40
per month
Unlimited properties, priority support, advanced reporting
Hammock Lite
~£5
per month
Basic MTD compliance and record keeping
Hammock Standard
~£8-10
per month
Full MTD features, bank feeds, Self Assessment
Hammock is affordable relative to many competitors, but it still charges from day one. A landlord with a single buy-to-let pays £60 to £120 per year for MTD compliance with Hammock. With Latch, the same landlord pays nothing.
At larger portfolio sizes, Latch's paid plans cost more than Hammock but include dramatically more functionality: AI automation, tenant portals, maintenance management, and compliance tracking alongside MTD compliance.
The trade-off: Hammock is a lightweight, affordable MTD specialist. Latch is a full property management platform with free MTD. Your choice depends on whether you need just tax compliance or a complete landlord toolkit.
MTD Feature Deep Dive
Digital Record Keeping
Both platforms maintain HMRC-compliant digital records of rental income and expenses. Hammock focuses tightly on tax-relevant record keeping with categorisation aligned to Self Assessment requirements. Latch provides the same tax categorisation within a broader property management context.
Quarterly Submissions
Both platforms generate quarterly update summaries and support direct submission to HMRC. Hammock's submission workflow is straightforward and tax-focused. Latch's paid plan adds AI-powered preparation where Matt reviews your categorised transactions and flags gaps before submission.
HMRC Integration
Both platforms connect directly to HMRC's MTD API. Neither requires bridging software. Both handle the technical submission process so you do not need to interact with HMRC systems directly.
Bank Feed and Categorisation
Both platforms import bank transactions via Open Banking. Hammock offers automated categorisation rules that learn from your patterns. Latch's free plan provides guided manual categorisation, while the paid plan adds Matt the AI agent for fully automatic categorisation that improves with corrections.
Beyond MTD: Property Management
This is where the platforms diverge entirely. Hammock is a tax tool. It handles MTD compliance, Self Assessment, and basic landlord accounting. It does not manage tenants, maintenance, compliance certificates, or property listings.
Latch is a full property management platform. MTD compliance sits alongside tenant portals, lease management, maintenance tracking, Gas Safety and EICR reminders, and AI-powered rent chasing. If you need both MTD and property management, Latch eliminates the need for multiple tools.
Hammock MTD Pros and Cons
Hammock MTD
Pros
- Specialist MTD and landlord tax focus
- Affordable pricing from around £5 per month
- Direct HMRC API integration
- Full Self Assessment tax return generation
- Automated categorisation rules
- Simple, lightweight interface focused on compliance
Cons
- No free tier — charges from day one
- No AI-powered categorisation
- No property management features (tenants, maintenance, compliance)
- No tenant portal or communication tools
- No property listing or vacancy management
- Limited functionality beyond tax and accounting
Latch MTD Pros and Cons
Latch MTD
Pros
- Free MTD compliance for up to 3 leases
- AI-powered categorisation via Matt on paid plans
- Full property management platform alongside MTD
- Gas, EPC, EICR, and deposit compliance tracking
- Tenant portal, maintenance management, and rent chasing
- Direct HMRC API integration
Cons
- Free tier capped at 3 leases
- Paid plans cost more than Hammock
- Broader platform may feel complex if you only need tax tools
- No standalone Self Assessment generation on free plan
- Newer platform with shorter track record than Hammock
The Latch Approach: Why We Made MTD Free
MTD is a government mandate, not a premium feature. We believe the tools to meet a legal requirement should be accessible to every landlord. Our free plan includes all core MTD features for up to 3 leases because everyday landlords should not have to pay a subscription just to follow the rules.
If your portfolio grows or you want AI to handle the categorisation work, our paid plans are there. But the choice is yours — we will never gate basic compliance behind a paywall.
Verdict
Latch vs Hammock for MTD
For landlords with 1 to 3 properties who need free MTD compliance, Latch wins decisively. For landlords who want a lightweight, affordable, tax-only tool and are happy paying from day one, Hammock is a solid specialist. For landlords who want MTD compliance plus property management in a single platform, Latch offers far more value.
Best for: Latch is best for landlords wanting free MTD compliance and a full property management platform. Hammock is best for landlords wanting a simple, affordable, tax-only specialist.
Start Your Free MTD Compliance with Latch
Get MTD-ready in minutes with Latch. Core MTD features included free for up to 3 leases. No credit card required. Upgrade to unlock Matt the AI agent for automatic categorisation and more leases.
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Get Started with LatchDisclaimer: This article provides general information about MTD software options and pricing. It does not constitute tax advice. Software pricing is based on published rates as of February 2026 and may change. Consult a qualified accountant or tax adviser for advice specific to your circumstances.
