When choosing accounting software, there are a few key features to look for. Surprisingly, not all accounting software will work for landlords. In fact, the majority of accounting software does not accommodate smaller landlords who operate as individuals, own less than 5 properties and don’t treat property as their primary income.
With Making Tax Digital (MTD) for Income Tax coming into effect in April 2024, it would be beneficial for these types of landlords to start looking for suitable software now. MTD for Income Tax will affect landlords and self-employed business owners with a combined property/business income of over £10,000 per year.
One software we suggest is Hammock. Specifically tailored towards landlords, it is MTD-compliant, cost-effective and easy to use. You can connect multiple bank accounts, register your rental properties and match your transactions with multiple property income categories. Another software we suggest is QuickBooks Online, it can help you create custom invoices, manage VAT and see your data in real-time.
Regardless of the software you choose, you should make sure that it will comply with upcoming Making Tax Digital for Income Tax rules, and that it can manage the books for multiple properties.
November 22nd, 2022
