Making Tax Digital Costs 2026: Landlord Price Guide
MTD compliance is not free for most landlords. Software, accountants, and time add up. A full cost analysis for portfolios of 1 to 20+ properties.
The Latch Team
Editorial
Making Tax Digital is not just a change to how you file taxes. It is a change to how much you spend on filing taxes. Software subscriptions, accountant fee increases, and the time cost of learning new systems all add up, and for the first time, these costs are mandatory rather than optional.
This guide breaks down the real costs of MTD compliance across different portfolio sizes, from a single buy-to-let to a 20-property portfolio. We look at software costs, accountant fees, time investment, and the total annual bill you should budget for.
We also identify where you can save money, including a platform that includes core MTD compliance features on its free tier.
The Three Cost Categories of MTD Compliance
The cost of Making Tax Digital compliance falls into three categories. Most landlords only think about the first one, but the other two can be equally significant.
Software Costs
The annual subscription cost of MTD-compatible software. Ranges from £0 to £300+ per year depending on your provider and portfolio size.
£0 - £300+/year
Accountant Uplift
The additional fees your accountant will charge for MTD-related work. Quarterly reviews, software setup support, and year-end declaration assistance.
£100 - £500/year extra
Time Investment
The hours you spend setting up software, learning new workflows, and managing quarterly submissions. Your time has value.
15 - 30 hours/year
Software Cost Comparison by Portfolio Size
Software is the most visible MTD cost. Here is what the major providers charge for landlord portfolios of different sizes. All prices are annual costs based on published pricing as of February 2026.
| Provider | 1 Property | 5 Properties | 10 Properties | 20 Properties |
|---|---|---|---|---|
| Landlord Vision | £120/year | £120/year | £264/year | £600/year |
| Landlord Studio PRO | £156/year | £180/year | £240/year | £360/year |
| FreeAgent | £0 (bank)/ £228 | £0 (bank)/ £228 | £0 (bank)/ £228 | £0 (bank)/ £228 |
| Clear Books | £156/year | £156/year | £156/year | £156/year |
| Hammock | £60/year | £60/year | £120/year | Custom |
| Latch | £0 (free tier) | £20/month (Pro) | £20/month (Pro) | £40/month (Enterprise) |
Note: FreeAgent is free only for customers of NatWest, RBS, Mettle, or Ulster Bank. For all other users the standard subscription applies. Latch includes core MTD features on the free tier; paid plans add AI categorisation and unlimited properties. Prices are based on published rates and may vary.
At 10 properties, most landlords are paying between £120 and £264 per year just for MTD software. At 20 properties, the figure can exceed £360. Latch's free tier includes core MTD compliance features, while paid plans offer additional capabilities at competitive prices.
Latch: Core MTD features free. Get started with MTD compliance on the free tier. Upgrade to Pro or Enterprise for AI-powered categorisation, unlimited properties, and advanced reporting.
Accountant Fees in the MTD Era
If you use an accountant, expect their fees to increase under MTD. The change from one annual return to four quarterly submissions plus a final declaration means significantly more work.
Here is how accountant costs typically change with MTD:
| Service | Pre-MTD Cost | With MTD Cost | Increase |
|---|---|---|---|
| Annual tax return preparation | £200 - £500 | £200 - £500 | £0 (unchanged) |
| Quarterly review (x4) | N/A | £50 - £100 per quarter | £200 - £400/year |
| MTD software setup support | N/A | £50 - £150 (one-off) | £50 - £150 (year 1) |
| Year-end final declaration | Included in return | £50 - £100 extra | £50 - £100/year |
| Total annual increase | £250 - £500/year |
Not every landlord will see all of these increases. If you maintain your own software and only ask your accountant to review your figures, the uplift will be lower. If you rely on your accountant to manage your MTD software entirely, expect the higher end of the range.
Reduce accountant dependency: The better your software handles categorisation and record keeping, the less work your accountant needs to do. Latch's automatic bank feeds and guided categorisation workflows mean cleaner records and lower accountant bills. Paid plans add AI-powered categorisation for even less manual effort.
The Time Cost Nobody Talks About
Your time has value, and MTD requires a meaningful time investment, especially in the first year. Here is a realistic breakdown of the hours involved:
Initial Setup
Choosing software, migrating records, connecting bank accounts, importing historical transactions, and learning the interface.
5 - 10 hours
Quarterly Filing (x4)
Reviewing transactions, correcting categorisation errors, preparing and submitting each quarterly update.
1 - 2 hours each
Year-End Declaration
Reviewing all four quarters, making adjustments, adding additional income sources, and submitting the final declaration.
2 - 4 hours
Ongoing Record Keeping
Photographing receipts, checking bank feed imports, and correcting miscategorised transactions throughout the year.
1 - 2 hours/month
In total, expect to spend 25-35 hours in your first year of MTD compliance, dropping to 15-25 hours in subsequent years as you become familiar with the process. If you value your time at £30 per hour, that is £750-1,050 in the first year.
Total Annual MTD Cost at Different Scales
Bringing it all together, here is the total estimated annual cost of MTD compliance for different portfolio sizes. We show two scenarios: using typical paid software, and using Latch (free).
| Cost Element | 1 Property (Paid) | 1 Property (Latch) | 10 Properties (Paid) | 10 Properties (Latch) |
|---|---|---|---|---|
| Software | £60 - £156 | £0 | £120 - £264 | £0 |
| Accountant uplift | £100 - £250 | £100 - £250 | £250 - £500 | £250 - £500 |
| Time (@ £30/hr) | £450 - £750 | £450 - £750 | £600 - £900 | £600 - £900 |
| Total (Year 1) | £610 - £1,156 | £550 - £1,000 | £970 - £1,664 | £850 - £1,400 |
| Saving with Latch | £60 - £156/year | £120 - £264/year |
Software is the one cost you can significantly reduce by choosing Latch. The free tier covers core MTD compliance, and paid plans add automation features that reduce time and accountant costs further.
The 5-Year Cost of Paid MTD Software
MTD is not a one-off cost. Software subscriptions are ongoing, and they tend to increase over time. Here is what a 10-property landlord could spend on MTD software over five years:
5-Year Software Cost Example (10 Properties)
At £200/year (a mid-range estimate for 10 properties), you will spend £1,000 on MTD software over five years. At £264/year, that rises to £1,320. With Latch, the 5-year cost is £0. That saving alone could cover a gas safety certificate, an EICR, or a full property inventory.
The savings compound over time and with portfolio growth. A landlord who grows from 10 to 20 properties over five years could save £1,500-2,500 in software costs alone by using Latch from the start.
How to Minimise Your MTD Costs
Regardless of your software choice, here are practical ways to reduce your overall MTD compliance costs:
- Use free software: Eliminate the largest variable cost by using Latch for MTD compliance at no charge.
- Use a dedicated property bank account: Separating rental income from personal transactions dramatically reduces categorisation time.
- Enable bank feeds: Automatic transaction imports eliminate manual data entry and reduce errors that cost time to fix.
- Use smart categorisation: Software with guided or AI-powered categorisation reduces the time spent manually sorting transactions. Latch's paid plans include AI categorisation.
- Submit early each quarter: Rushing at the deadline creates mistakes that take time to correct. Submit in the first week of the grace period.
- Do your own quarterly submissions: If your records are clean, you may not need your accountant for quarterly submissions. Save their time (and your money) for the year-end declaration.
- Start before the deadline: Setting up software and migrating records under pressure takes longer and costs more. Start now.
The Free Alternative: Latch
Latch significantly reduces the largest controllable cost of MTD compliance: software. Built specifically for UK landlords and designed to meet all HMRC MTD requirements, Latch offers:
- Core MTD compliance features on the free tier
- Automatic bank feed imports via Open Banking
- Guided expense categorisation workflows
- Quarterly update preparation and submission support
- Digital receipt storage and property-level tracking
- No credit card required to get started
Free tier: Core MTD compliance features at no cost. Paid plans: Add AI-powered categorisation, unlimited properties, and advanced portfolio reporting.
Start MTD Compliance for Free
Sign up for Latch and get started with MTD compliance on the free tier. No credit card required. Upgrade to a paid plan when you need AI categorisation and unlimited properties.
Ready to simplify your property management?
Create your free account today and see how organized financial tracking can streamline your portfolio.
Get Started with LatchDisclaimer: This article provides general information about the costs of Making Tax Digital compliance. All cost estimates are based on published pricing and typical accountant fees as of February 2026. Actual costs may vary depending on your specific circumstances, portfolio size, and chosen providers. This is not tax advice. Consult a qualified accountant or tax adviser for advice specific to your situation.
