Three questions, then a shortlist with the honest trade-offs. Free options come first when cost matters, even though we earn nothing from them.
Ad Any button marked "Ad" is an affiliate link: if you sign up we may be paid, at no extra cost to you. It never changes the order, which follows the rule shown with your shortlist. Right now none of the links on this page are paid. How we're paid.
HMRC says your software (or a combination of products) needs to:
Source: Choose the right software, GOV.UK. Only products that have been through HMRC's recognition process can send MTD updates, and HMRC doesn't recommend any of them. Check any product in HMRC's software finder before you sign up.
Bank feeds (transactions come in automatically), receipt capture on your phone, invoicing, and access for your accountant if you use one. If you're VAT registered, check the plan also does MTD for VAT. Free plans usually leave some of these out.
These say they're free for MTD for Income Tax. Each has limits, so check they fit before you rely on one.
Free MTD software for sole traders who aren’t VAT registered
Price we saw: £0 for the free plan. Sage says its paid Sole Trader plan is £7 a month excl. VAT.
Sage says the free plan covers quarterly updates and the year-end return, with one bank account, 25 auto-categorised transactions and 5 sales invoices a month. Single user.
Checked 3 November 2026. Source: www.sage.com. Prices and plans change, so check before you sign up.
Free MTD software for sole traders and landlords
Price we saw: £0 for Sole Trader Free and Property Free. Paid Sole Trader plan £5 a month plus VAT.
Clear Books says its free plans cover quarterly updates and year-end filing with no transaction limit. Bank feeds and invoicing are on paid plans. Property Free is aimed at landlords with one property.
Checked 3 November 2026. Source: www.clearbooks.co.uk. Prices and plans change, so check before you sign up.
Free MTD software, including spreadsheet bridging
Price we saw: £0. It describes itself as free MTD software for Income Tax and VAT.
Run by Open Answers. Two modes: upload figures from your spreadsheet (bridging), or keep records in the browser. It says it covers self-employment, UK property and foreign property.
Checked 3 November 2026. Source: www.mytaxdigital.co.uk. Prices and plans change, so check before you sign up.
Low-cost MTD software for sole traders and landlords
Price we saw: MTDKit says its MTD Income Tax plan is £2.99 a month (£24 a year) until 1 December 2026, then £5.99 a month (£59 a year). Registering is free.
Made just for MTD: receipts, quarterly updates and the end-of-year tax return, without the extras you might not need. Check it’s listed in HMRC’s software finder before you pay.
Checked 3 November 2026. Source: mtdkit.com. Prices and plans change, so check before you sign up.
Full online accounting
Price we saw: Ignite from £18 a month excl. VAT. Xero often runs introductory offers, so check what’s on today.
Bank feeds, invoices, quotes, receipts and reports. Xero says its plans cover MTD for Income Tax; check the plan you pick in HMRC’s finder. Popular with accountants, so ask yours what they use.
Checked 3 November 2026. Source: www.xero.com. Prices and plans change, so check before you sign up.
Full online accounting
Price we saw: Several monthly plans. Prices change often, so check the current price on the QuickBooks UK site.
Popular with bookkeepers, with a strong mobile app. Check that your plan covers MTD for Income Tax, and VAT if you need it, in HMRC’s finder.
Checked 3 November 2026. Source: quickbooks.intuit.com. Prices and plans change, so check before you sign up.
Full online accounting
Price we saw: Several monthly plans. Prices change often, so check the current price on the Sage UK site.
UK-built accounting from a long-standing UK supplier, aimed at VAT-registered businesses. If you’re not VAT registered, compare Sage Sole Trader above. Check your plan in HMRC’s finder.
Checked 3 November 2026. Source: www.sage.com. Prices and plans change, so check before you sign up.
We haven't tested every product hands-on. What's here comes from each supplier's own website on 3 November 2026, and HMRC's finder lists many more. How we cover products.