Making Tax Digital for
Landlords

Continue to use your existing spreadsheet and insert an additional worksheet for each quarter to collect their quarterly summary data and upload the spreadsheet to our web service to send data to HMRC. Users may need to update their own expense categories, to match those of HMRCs.  

In conjunction with our paid-for web service, you can use one of our free and simple spreadsheets to enter your accounting data to upload data to HMRC.

All income and expense categories are pre-matched to HMRCs expense categories and allows bespoke categories to be added if desired. Spreadsheets run complete ledger reports, deal simply with dis-allowable expenditure, run VAT Returns and show profit reports per property or pre-self-employment for those that run multiple business units. Property rental income and expense totals can be quickly split between multiple owners for submission to HMRC.  

Some users of Sage, QuickBooks and possibly other products will use our software to export an Excel report out of their accounting software and upload that to our website in order to send data to HMRC.  

The reason the user might not want Sage or QB to file the data to HMRC is because they are likely to charge many times more than us for a similar service. We currently do that for VAT Returns that need to have data sent to HMRC.  

There are two basic elements to this:

1. You must keep your bookkeeping, through to the VAT filing, on computerised systems. You cannot do it in ledger books/paper anymore;
2. The business government gateway website is gradually being taken down. If your bookkeeping software doesn’t have a facility for you to file your VAT Return, you will need bridging software. This is what we provide.

We extract out of your spreadsheet the nine-box VAT Return figures and send those to HMRC.
HMRC do not get your spreadsheet. We do not keep anything you upload to us.

No, our software has been approved by HM Revenue & Customs for long-term use to accept spreadsheets.

Don’t get sucked in by the tales of some software providers that spreadsheets are only a temporary solution.

Watch this video:
https://www.youtube.com/watch?v=BVH8e7gi9Z8

‍or follow these steps:

1. Ensure you have both spreadsheets open on Excel: our worksheet and your bookkeeping spreadsheet;
2. Then, click on "View" then "View Side-by-Side". You should now see both spreadsheets at the same time: one above, one below on the same page;
3. Now pick up by the tab and drop either our worksheet into your spreadsheet, or vice versa to finish.

Failing that, you do not need to merge our worksheet into yours. You can keep the two spreadsheets separate, and use a formula to move your VAT Return nine-box figures to our spreadsheet and just upload that.

Making Tax Digital (MTD) for landlords with rental income over £50,000 yearly begins in April 2026. Landlords will then be required to use third-party making tax digital software for landlords to submit quarterly returns of income and expenditure to HMRC.

Landlord ITSA MTD bridging software is a third-party application landlords can use to automatically integrate their accounting and tax records with HMRC. This enables landlords to easily submit quarterly returns of income and expenditure for Making Tax Digital compliance. 123 Sheets offers landlords MTD software designed specifically to help landlords stay compliant with their new obligations.

The digital tax rules for landlords apply to landlords with an income of over £50,000. Under the new MTD regulations, landlords must use third-party making tax digital software for landlords, such as 123 Sheets landlords MTD software, to submit quarterly returns of rental income and expenditure to HMRC.