How Provestor Fits Into MTD

HMRC requires you to use MTD-compatible software to keep digital records and submit updates to HMRC. Provestor is MTD-compatible software designed specifically for landlords with property income.

What MTD software must do

HMRC's requirements for MTD software are straightforward. The software must let you:

Create, store and correct digital records of your property income and expenses
Send quarterly updates to HMRC
Submit your tax return by 31 January following the end of the tax year

See HMRC's guidance on choosing software for the full requirements.

Provestor is recognised by HMRC as compatible software and meets all these requirements.

How Provestor meets the requirements

Digital record-keeping

Provestor keeps all your property income and expenses in digital records that meet HMRC's standards. Each transaction records the date, description, amount, and category—everything HMRC requires.

The software is built for cash basis accounting, which is the standard method for landlords with property income under £150,000. If your income exceeds this threshold, you'll need accruals basis accounting, which Provestor doesn't support.

For more on what counts as acceptable digital records, see digital record-keeping requirements.

Direct submission to HMRC

Provestor connects directly to HMRC's systems. When you send a quarterly update or submit your final return, it goes straight to HMRC without any manual steps or third-party transfers.

You'll see confirmation from HMRC when each submission is accepted, and Provestor tracks your quarterly updates so you can see what's been filed and what's still due.

Features that make MTD easier

Bank statement and receipt import

Rather than manually entering every transaction, Provestor can import data automatically:

Bank statements: Drag and drop your bank statement, and Provestor extracts the transactions into your records
Receipts: Take a photo or upload a receipt, and Provestor reads the date, amount, and supplier

This reduces manual data entry and ensures your records match your actual bank activity.

Letting agent integrations

If you use a letting agent, Provestor can import their statements directly. Drag and drop the statement, and the software extracts rental income, agent fees, maintenance costs, and other expenses.

Categorisation of property expenses

Provestor uses AI to categorise your transactions automatically. When you upload a bank statement or receipt, the software suggests the correct tax category based on the transaction details.

Provestor also has unique features for property investors, where HMRC has specific rules:

Mortgage interest: Separated automatically from other expenses, as HMRC requires residential finance costs to be reported separately
Capital vs revenue expenses: Record capital spending (like a new boiler) rather than revenue (like repairs), helping you classify it correctly
Personal use adjustments: For expenses with a personal element, Provestor can split out the allowable business portion

Joint ownership

For jointly owned properties, you enter the full transaction amount and specify the ownership percentage. Provestor automatically apportions income and expenses correctly when submitting to HMRC, so you don't need to calculate splits manually.

See joint ownership splits for how to set this up.

Quarterly and year-end submissions

Provestor handles both quarterly updates and your final tax return:

Quarterly updates: Send cumulative year-to-date property income and expenses. The software shows exactly which transactions are included before you send.
Final return: At year-end, submit your full tax return including any other income, reliefs, and allowances. The quarterly updates you've already sent are incorporated automatically.

See sending quarterly updates and submitting your final declaration for step-by-step guidance.

Service tiers

Provestor offers three service levels depending on how much support you want:

Tier	What's included
DIY	Full access to the software. You manage your own record-keeping and submissions. Basic product support available.
Assisted	You enter your records throughout the year. A Provestor accountant checks your quarterly updates before you submit them. At year-end, you complete a questionnaire and upload documents—our accountants then prepare and submit your final declaration.
Done For You	Hands-off service. You send your documents, and a Provestor accountant does your record keeping and files your returns. You retain access to the software. Supports up to 10 properties.

All tiers use the same software and meet the same MTD requirements. The difference is in the level of support.

For current pricing, see Provestor MTD plans.

What Provestor handles vs what you need to do

Provestor takes care of the technical MTD requirements—software compatibility, digital records, HMRC submissions. But it doesn't remove the need for you to provide accurate information.

Provestor handles:

Storing records in the format HMRC requires
Categorising transactions (with AI assistance)
Submitting updates and returns to HMRC
Tracking deadlines and quarterly updates
Calculating your tax position based on the information you provide

You're responsible for:

Providing complete and accurate transaction data (receipts, bank statements, agent statements)
Confirming the AI categorisation is correct
Deciding when to submit (though Provestor will remind you of deadlines)
Making sure claims for expenses are allowable under HMRC rules

Assisted tier: You still do the record keeping throughout the year. Our accountants check your quarterly updates before you submit them, and at year-end, handle the final declaration preparation and submission after you complete our questionnaire.

Done For You tier: You send documents, and our accountants handle the record keeping and all submissions.

Tip

Keep your digital records from the start of your accounting period, even if MTD doesn't apply to you yet. Switching systems mid-year creates unnecessary complexity.

What Provestor doesn't support

Provestor is designed for individual landlords with UK property income using cash basis accounting. It doesn't support:

Self-employment income: If you have self-employment income alongside property income, you'll need separate software for the self-employment portion. You can use Provestor for property income and another MTD product for self-employment—they'll work together at year-end.
Foreign properties: Only UK property income is supported.
Accruals basis accounting: Required if your property turnover exceeds £150,000. Provestor supports cash basis only.

See Provestor product limitations for the full list.

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