The best MTD software for construction contractors in 2026 is Xero — Xero handles CIS well and has the strongest project tracking for construction. Its 1,000+ integrations include construction-specific tools.
What construction contractors need from MTD software
- Tracking materials and subcontractor costs
- Managing CIS (Construction Industry Scheme) payments
- Recording mileage and vehicle expenses
- Handling VAT if turnover exceeds £85,000
Top pick: Xero
Xero — Xero handles CIS well and has the strongest project tracking for construction. Its 1,000+ integrations include construction-specific tools.
Sole traders & landlords who want a mature ecosystem and lots of integrations
Runner-up: Sage Accounting
Sage Accounting — Sage is the most established UK accounting brand with strong payroll and reporting for construction businesses.
Established UK businesses & landlords who want a recognisable UK brand
How to choose
The right MTD software depends on your specific situation. If xero handles cis well and has the strongest project tracking for construction. its 1,000+ integrations include construction-specific tools., start with Xero. If sage is the most established uk accounting brand with strong payroll and reporting for construction businesses., Sage Accounting is worth considering.
For a full comparison, see our Xero vs Sage Accounting head-to-head.