All six major HMRC-approved Making Tax Digital software options compared. Find the right fit for your income type, budget, and technical comfort level.
From April 2026, sole traders and landlords earning over £50,000 must use HMRC-compatible software to keep digital records and submit quarterly updates. The right software makes this straightforward. The wrong one costs you time, money, and headaches.
This page compares the six main MTD-compatible software options so you can choose without guesswork.
All six providers below are confirmed as HMRC-recognised for MTD for Income Tax. Prices are approximate monthly costs and change regularly — always check the provider's current pricing before signing up.
| Provider | Type | Best For | Price | Landlord Support |
|---|---|---|---|---|
| QuickBooks | Sole traders & freelancers | From £10/mo | Limited | |
| Deal90% off for 7 months — from just £1/mo | ||||
| Xero | Growing businesses & landlords | From £15/mo | Yes (with add-ons) | |
| Deal95% off for 6 months — ends 31 March | ||||
| FreeAgent | Freelancers & contractors | From £19/mo | Basic | |
| Deal50% off for 6 months — from £16.50/mo | ||||
| Sage Accounting | Small businesses & sole traders | From £18/mo | Yes | |
| Deal90% off for 10 months — from £1.80/mo | ||||
| FreshBooks | Service businesses & consultants | From £30/mo | Limited | |
| Deal50% off for 3 months — from £15/mo | ||||
| GoSimpleTax | Landlords & simple tax returns | From £35/yr | Strong | |
| ValueJust £35/year — no monthly fees | ||||
Prices shown are starting prices excl. VAT. Deals checked daily — click any row to visit the provider.
All-in-one software handles everything: you record your income and expenses inside the app throughout the year, and it submits your quarterly updates directly to HMRC. QuickBooks, Xero, FreeAgent, Sage, and FreshBooks all work this way.
Bridging software connects your existing records (a spreadsheet, for example) to HMRC. You maintain your own bookkeeping however you like, then the bridging tool pulls the figures and submits them digitally. GoSimpleTax operates more like a filing tool — it's designed to make the submission side simple rather than replace your record-keeping system.
If you're comfortable with spreadsheets and don't want to change how you work, a bridging tool can be enough. If you want one place to manage everything — invoices, expenses, bank feeds, and tax — go all-in-one.
Only use software on HMRC's approved software list. All six providers on this page are recognised. Avoid unknown tools that claim MTD compatibility without HMRC confirmation.
The best MTD software connects directly to your bank account and imports transactions automatically. This removes manual data entry and dramatically reduces the time you spend on quarterly updates. QuickBooks, Xero, and FreeAgent all offer this.
You don't need accounting qualifications to use MTD software — but some tools assume you have them. QuickBooks and FreshBooks are generally considered the most approachable for non-accountants. Xero has a steeper learning curve but more power underneath.
If you're on-site, in a van, or between properties, a good mobile app matters. QuickBooks and FreeAgent have strong mobile apps for capturing receipts and logging expenses on the go.
MTD is new. You'll have questions. Check whether the provider offers live chat, phone support, or a help centre that actually answers MTD-specific questions before you commit.
FreeAgent is effectively free if you bank with NatWest, Royal Bank of Scotland, or have a Mettle business account. This is a genuine deal — FreeAgent is full-featured MTD-compatible software with no subscription cost for eligible customers.
GoSimpleTax starts at around £85 per year, making it the most affordable paid option. It's well-suited to people with straightforward income who just need to meet the MTD submission requirement without paying for accounting features they won't use.
Most providers offer 30-day free trials. With Wave 1 starting in April 2026, there's time to try one or two options before committing.
Landlords have specific needs that not all MTD software handles well. You need to track rental income and allowable expenses per property, not just as one lump sum. You also need to deal with things like mortgage interest relief, wear and tear, and the distinction between furnished and unfurnished lets.
If you have multiple properties, look specifically for software that lets you assign income and expenses per property address. This makes the end-of-period statement significantly easier to produce.
Sole traders typically need invoicing, expense tracking, mileage logging, and quarterly submission. Most of the all-in-one tools cover this well.
If you have both a sole trader business and rental income, you'll need software that handles both income sources. Sage and GoSimpleTax both manage this. Check with your chosen provider before signing up.
Even if you're not in Wave 1, it's worth getting set up early. Quarterly submissions require a full quarter of digital records before your first submission — you can't backfill manually at the last minute.
The right software depends on whether you're a landlord, a sole trader, or both — and how much you want to spend. Our full software comparison breaks down each provider in more detail, including current pricing, free trial links, and a plain-English verdict for each type of user. Start there, pick one, and get your digital records in order before your deadline hits.
Choose your software, set up digital records, and get ahead of the April 2026 deadline.
How to Sign Up for MTD →