Independent MTD software comparisons · HMRC-recognised only
The MTD software that's actually right for your business
We test and rank the MTD software that can genuinely submit to HMRC. Tell us how you work
and we'll point you to the shortlist worth considering — with the trade-offs, not the hype.
If you report self-employed or rental income, you will need HMRC-recognised software for
quarterly submissions under Making Tax Digital for Income Tax. Don't leave it to the deadline.
Our Software Finder asks about your bank, your workload, and what matters most to you —
then recommends the three tools that fit, plus the alternatives and limitations you
need to know about. Takes under two minutes.
If you only pick one, pick the one your accountant already uses
MTD turns filing into a rhythm: log as you go, let the bank feed do the typing, and the
quarterly update becomes a two-minute confirmation instead of a clean-up sprint. Xero is
the pick here because that rhythm holds as you grow — the add-on library means almost
nothing you already rely on has to be replaced, and handing your books to an accountant
later is a bolt-on rather than a migration. It is the wrong buy if you want one
opinionated screen and nothing else, and the entry plan is tight enough that a second
company changes the maths fast.
Xero is a mature cloud accounting platform, HMRC-recognised for MTD Income Tax since the pilot phase. It offers the largest UK app ecosystem and very reliable bank feeds.
Best for
Sole traders & landlords who want a mature ecosystem and lots of integrations
Not ideal for
Not ideal if you only need a simple, opinionated package — FreeAgent is often cheaper and easier for that.
Key features
MTD Income Tax submissions
Largest UK app marketplace (1,000+ add-ons)
Strong, reliable bank feeds
Multi-currency, projects and inventory on higher tiers
Worth knowing: The entry Xero Simple plan (£7/month) is fairly limited, pricing is per company so it adds up with multiple entities, and UK phone support is reserved for higher tiers.
Xero is a mature cloud accounting platform, HMRC-recognised for MTD Income Tax since the pilot phase. It offers the largest UK app ecosystem and very reliable bank feeds.
Best for
Sole traders & landlords who want a mature ecosystem and lots of integrations
Not ideal for
Not ideal if you only need a simple, opinionated package — FreeAgent is often cheaper and easier for that.
Key features
MTD Income Tax submissions
Largest UK app marketplace (1,000+ add-ons)
Strong, reliable bank feeds
Multi-currency, projects and inventory on higher tiers
Worth knowing: The entry Xero Simple plan (£7/month) is fairly limited, pricing is per company so it adds up with multiple entities, and UK phone support is reserved for higher tiers.
Sage Sole Trader is genuinely free accounting software built for non-VAT registered sole traders and is HMRC-recognised for MTD Income Tax. No trial or billing card required.
Best for
Non-VAT registered sole traders who want free, MTD-ready accounting from a trusted UK brand
Not ideal for
Not suitable for VAT-registered businesses, and not a fit if you want payroll, deep integrations, or direct Self Assessment filing.
Key features
MTD Income Tax submissions
Income and expense tracking
Sales invoicing
Bank feeds and mobile app
Worth knowing: The free plan has tight limits (5 invoices and 25 auto-categorised transactions per month) and cannot submit your final Self Assessment return directly to HMRC.
FreeAgent is an HMRC-recognised accounting package for UK freelancers, sole traders, and micro limited companies. It bundles bookkeeping, invoicing, time tracking, and mileage into one simple dashboard.
Best for
UK sole traders & micro limited companies who want a simple all-in-one package
Not ideal for
Not ideal if you need a wide app ecosystem or bespoke workflows — third-party integrations and reporting customisation are more limited than Xero or Sage.
Key features
MTD Income Tax submissions
Built-in time tracking, mileage and CIS
Self Assessment and corporation tax support
Invoicing
Worth knowing: The free tier only applies if you hold a qualifying NatWest, RBS, Mettle, or Ulster Bank business current account — everyone else pays the monthly subscription.
Price:Free with a NatWest, RBS, Mettle, or Ulster Bank business current account, otherwise from £19/month + VAT
QuickBooks Online from Intuit is HMRC-recognised for MTD Income Tax and starts at £10/month for sole traders. It is best known for its excellent mobile app and tight payroll integration.
Best for
Sole traders & small businesses already in the Intuit ecosystem
Not ideal for
Not ideal if you are not already in the Intuit ecosystem — it has less of a UK-native feel and a less flexible category structure than Xero.
Key features
MTD Income Tax submissions
Integrated QuickBooks Payroll and Intuit payments
Excellent mobile app with mileage tracking
Instant receipt capture
Worth knowing: Recent UK price increases have drawn criticism, and useful features like MTD VAT and multi-currency sit on higher-priced tiers.
Sage Accounting is HMRC-recognised for MTD Income Tax and comes from the UK's most established accounting brand. It suits established businesses and landlords who prefer a traditional UK name.
Best for
Established UK businesses & landlords who want a recognisable UK brand
Not ideal for
Not ideal if you need the broadest app ecosystem — Sage's add-on market is smaller than Xero's.
Key features
MTD Income Tax submissions on all plans
Built-in payroll on the Plus tier
Sage Copilot AI features on newer tiers
Stable bank feeds and multi-entity support
Worth knowing: Pricing has crept up, useful features are reserved for higher tiers, and the Sage product-line split can confuse first-time buyers.
Zoho Books is an HMRC-recognised MTD Income Tax package that includes a genuinely free plan for businesses with turnover under £50,000, with paid plans from £8/month.
Best for
Sole traders who want a free MTD-recognised option with full accounting features
Not ideal for
Not ideal if you need UK-specific integrations — fewer than Xero or Sage, with email-only support on the free tier.
Key features
MTD Income Tax submissions on the free plan
Invoicing
Expense tracking
Bank feeds
Worth knowing: The free plan is capped at 1,000 invoices per year, and support on the free tier is email-only.
Price:Free for businesses with turnover under £50k, otherwise from £8/month
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