Making Tax Digital has forced landlords and sole traders to rethink how they keep records, submit figures and stay compliant with HMRC. For years, the assumption was simple: proper compliance required paid software, accountants, or both. Free tools were either too limited or not truly MTD-ready.
That assumption no longer holds.
In 2025, HMRC free MTD software has matured to the point where it can genuinely support real-world reporting- provided you choose carefully. The challenge is separating genuinely compliant solutions from stripped-down tools that only tick a submission box.
What makes free MTD software genuinely HMRC-ready?
The best free solutions share a few critical traits.
First, they are HMRC-recognised, not merely compatible. Recognition means the software has passed HMRC’s own testing for digital records and submissions.
Second, they are built around how landlords and sole traders actually earn income. Property income, self-employment income and mixed scenarios all behave differently under MTD. Generic bookkeeping tools often ignore this.
Third, they scale. A free tier should allow users to start simply, then upgrade as complexity increases – without forcing a complete system change.
This is where newer platforms have started to outperform legacy tools.
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How RentalBux fits into the new generation of free MTD tools
RentalBux was built by accountants who specialise in landlord and sole trader tax, not generic software developers. That background matters.
Unlike many free tools, RentalBux combines:
- MTD-compliant digital record keeping
- A pre-built chart of accounts aligned with HMRC requirements
- Support for property income, foreign property and self-employment
- Integrated accounting features such as bank feeds and invoicing
Crucially, RentalBux offers Making Tax Digital for landlords with one property and for sole traders with simple needs till March 2028, allowing users to stay compliant without committing to paid software upfront.
This makes it particularly attractive for:
- First-time landlords
- Self-employed individuals transitioning away from spreadsheets
- Sole traders preparing early for mandatory MTD
Why timing matters more than ever
With MTD for Income Tax becoming mandatory from April 2026 for many sole traders and landlords, HMRC scrutiny will increase gradually, not overnight.
Those who adopt HMRC free MTD software early gain a critical advantage: cleaner records from day one. Quarterly submissions built on consistent data reduce the likelihood of corrections, amendments and HMRC follow-ups later.
Waiting until MTD is compulsory often means rushing setup, importing messy data and learning systems under pressure – exactly when mistakes are most costly.
