Landlords & letting · Tax

Send MTD for Income Tax quarterly updates from Xero

Set-up time1–2 hours
DifficultyMedium
AppsXero HMRC (Making Tax Digital) Starling Bank

The problem

You already use Xero for your lettings, and now HMRC wants quarterly updates.

The result

Your bank feed keeps Xero up to date and you send each quarterly update to HMRC from Xero.

How to set it up: Xero

Check if and when MTD for Income Tax applies to you on GOV.UK.
Connect a bank feed (for example Starling, from the Starling Marketplace) so rent and costs arrive automatically.
Reconcile monthly and code property income and expenses.
Set up MTD for Income Tax in Xero, connect to HMRC, then review and submit each quarterly update.

Get AI to help you build it

Paste this into ChatGPT, Copilot, Gemini or Claude:

I'm a UK landlord on Xero. Give me a quarter-end checklist for MTD for Income Tax: what to reconcile, what to check, and what to look at before I press submit. Plain English.

AI tools can get menu names wrong. Check against the sources below.

Before you start

Standard quarterly deadlines (GOV.UK): 7 August, 7 November, 7 February and 7 May.
Xero's exact MTD set-up screens weren't checked step by step. Follow Xero's in-app guidance.
This is general information, not tax advice.

Integrations used

Xero + HMRC (Making Tax Digital)

Built-in integration

Yes. Xero is HMRC-recognised software for Making Tax Digital for VAT and for Income Tax (quarterly updates and Final Declaration).

Starling Bank + Xero