Freelancers live on their phone, juggle multiple clients, and hate admin. The best MTD software for you combines invoicing, time tracking, and mileage capture with automatic quarterly submission — so MTD becomes a background chore rather than a project.
Answer 5 questions, get your shortlist
The MTD Software Finder asks how your business actually works — your bank, how busy you are, what matters most — then recommends three tools with honest reasons and limitations.
What freelancers actually struggle with
- Keeping track of income from several clients and contracts
- Capturing expenses (software subscriptions, home office, travel) without a shoebox
- Recording mileage automatically instead of at tax time
- Managing irregular income month to month
- Avoiding an accountant bill for simple, well-kept books
Three MTD software picks for freelancers
Each pick below is HMRC-recognised for MTD Income Tax — with one honest exception pointed out where relevant.
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.
Price: From £10/month (Sole Trader) — £24/month (Essentials)
Coconut is a UK-built, mobile-led accounting tool designed for sole traders, costing from £6/month. It suits freelancers who want the simplest possible MTD-only workflow.
- Best for
- Sole traders who want the simplest MTD-only tool, mobile-first workflow
- Not ideal for
- Not suitable for traders earning in non-GBP currency, VAT-registered businesses, or limited companies.
Key features
- MTD Income Tax show on every paid plan
- Built-in tax estimation
- Mobile-led interface to log income and expenses
- UK bank connections with auto-categorisation
Worth knowing: No multi-currency support, limited third-party integrations, and it does not scale for VAT-registered businesses or limited companies.
Price: From £6/month — £15/month
Selection criteria for freelancers
These are the features that matter most when choosing MTD software for freelancers.
- Recognised on the official HMRC list of MTD-compatible software
- A mobile app that makes day-to-day logging actually quick
- Built-in record of time, project, or mileage-based income
- MTD Income Tax submissions handled automatically each quarter
- Bank feeds and receipt capture so nothing slips through
- A price that matches a freelance budget, not an enterprise one
Your MTD prep checklist
- Separate your business and personal spending so expenses are easy to record
- Give every client a client record in your software from day one
- Turn on automatic mileage capture if you travel for work
- Try the mobile app before you pay — that is where you will live
- Set a weekly 15-minute banking-and-logging habit
- Check the quarterly deadline dates and set reminders
Tools made for freelancers
MTD Software Finder
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Open tool →MTD savings calculator
Work out what a free tier or cheaper tool could save you each year.
Open tool →Am I doing this right?
A quick compliance check that your MTD setup is on track.
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