Is MTD software tax deductible?
Last verified 23 October 2026
Yes, in most cases, if you use it for your business. For the self-employed, gov.uk lists computer software as an allowable expense if you make regular payments to renew the licence, or if the business uses it for less than two years. Landlords can deduct costs that are wholly and exclusively for letting.
Most MTD software is sold as a monthly or yearly subscription, which is a regular payment to renew the licence. Gov.uk says other software is usually claimed through capital allowances, unless you use the cash basis.
For a rental business, gov.uk says expenses are allowable as long as they are wholly and exclusively for renting out the property. If a cost is only partly for your letting business, for example software that also covers a separate job or personal use, you can only deduct the business part. Gov.uk already lists accountant's fees and direct costs such as stationery as allowable for landlords.
If you are not sure whether a cost is allowable, gov.uk suggests you contact HMRC.
Read next
- What is Allowable expenses? →
- Allowable Expenses for Landlords (2026) →
- Rental income tax calculator →
Sources
- GOV.UK: Expenses if you're self-employed: Office, property and equipment
- GOV.UK: Work out your rental income when you let property