According to a review of HMRC‘s approved software for Making Tax Digital, nearly a third of listed products lack the capability to submit complete tax returns for landlords, prompting concerns ahead of quarterly deadlines.
Of the 128 software products listed by HMRC for managing British property income, 44 either have tax return functionality still in development or lack it entirely. This finding comes from research conducted by landlord software company LetCompliance.
The study shows that 84 products indicate readiness for tax return filing, while 32 list it as ‘in development’ and 12 omit the feature. Among the 84 products claiming readiness, only 11 can handle all 16 additional income types specified by HMRC, such as bank interest, dividends, and pensions.
Making Tax Digital for income tax began on April 6, 2026, targeting landlords and sole traders with qualifying income over £50,000. The threshold will lower to £30,000 from April 6, 2027.
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Under this system, landlords must submit four quarterly updates and a final tax return using compatible software. The first quarterly deadline passed in August, with the next due in November. For the 2026-2027 tax year, the full tax return must be filed by January 31, 2028.
HMRC defines software marked as ‘in development’ as committed to completing the functionality in time for the 2026-2027 tax return, indicating these tools should be ready before the January 2028 deadline.
Erdem Volkan, founder of LetCompliance, stated: “Landlords are instructed to select software from HMRC’s list, and most focus on whether it handles quarterly updates. The tax return capability is equally important. A third of the products on the list cannot yet complete the year, so landlords should verify this feature and ensure it supports their other income types before committing.”