The best MTD software for Etsy sellers in 2026 is Xero — Xero has 1,000+ integrations including connections to Etsy and eBay. It can pull in transaction data automatically.
What Etsy sellers need from MTD software
- Tracking income from Etsy, eBay, and other platforms
- Recording materials and shipping costs
- Managing stock and inventory
- Handling VAT if turnover exceeds £85,000
Top pick: Xero
Xero — Xero has 1,000+ integrations including connections to Etsy and eBay. It can pull in transaction data automatically.
Sole traders & landlords who want a mature ecosystem and lots of integrations
Runner-up: FreeAgent
FreeAgent — FreeAgent is free with NatWest/RBS and handles multi-channel selling through its bank feed and expense tracking.
UK sole traders & micro limited companies who want a simple all-in-one package
How to choose
The right MTD software depends on your specific situation. If xero has 1,000+ integrations including connections to etsy and ebay. it can pull in transaction data automatically., start with Xero. If freeagent is free with natwest/rbs and handles multi-channel selling through its bank feed and expense tracking., FreeAgent is worth considering.
For a full comparison, see our Xero vs FreeAgent head-to-head.