Compare Making Tax Digital software for sole traders and landlords
Last updated: · Prices checked on vendor sites on 31 October 2026
To file Making Tax Digital for Income Tax (MTD for ITSA) you need software that HMRC recognises. On 31 October 2026 My Tax Digital and Sage Sole Trader Free cost nothing, Xero Simple was £0.70 for the first 6 months, then £7 excl. VAT, and spreadsheet users could add bridging software such as 123 Sheets for £19.75 a year.
Find your match in 3 questions
See all 12 answers
Sole trader · keeps records in a spreadsheet · VAT registered
Sole trader who keeps records in a spreadsheet and is VAT registered: consider My Tax Digital (free, also files MTD for VAT) or VitalTax (Excel add-in, £30 + VAT a year, also files VAT). Both bridge from a spreadsheet and are recognised for MTD for VAT too. Prices checked 31 October 2026; confirm on HMRC's software finder.
Sole trader · keeps records in a spreadsheet · not VAT registered
Sole trader who keeps records in a spreadsheet and is not VAT registered: consider My Tax Digital (free bridging mode) or 123 Sheets (£19.75 a year first year, ex. VAT). Both connect to a spreadsheet you already keep and send quarterly updates and the tax return. Prices checked 31 October 2026; confirm on HMRC's software finder.
Sole trader · wants new software for records · VAT registered
Sole trader who wants new software for records and is VAT registered: consider FreeAgent (£19 a month excl. VAT, VAT returns and payroll included) or QuickBooks (Simple Start plan adds VAT submission; see the QuickBooks pricing page). Both create records and file MTD for VAT and MTD for ITSA. Prices checked 31 October 2026; confirm on HMRC's software finder.
Sole trader · wants new software for records · not VAT registered
Sole trader who wants new software for records and is not VAT registered: consider Sage Sole Trader (Sole Trader Free plan, £0) or FreeAgent (free with NatWest, RBS, Ulster Bank or Mettle). Free ways to keep digital records and file, if you are not VAT registered. Prices checked 31 October 2026; confirm on HMRC's software finder.
Landlord · keeps records in a spreadsheet · VAT registered
Landlord who keeps records in a spreadsheet and is VAT registered: consider My Tax Digital (free, also files MTD for VAT) or VitalTax (Excel add-in, £30 + VAT a year, also files VAT). Both bridge from a spreadsheet and are recognised for MTD for VAT too. Prices checked 31 October 2026; confirm on HMRC's software finder.
Landlord · keeps records in a spreadsheet · not VAT registered
Landlord who keeps records in a spreadsheet and is not VAT registered: consider My Tax Digital (free bridging mode) or 123 Sheets (£19.75 a year first year, ex. VAT). Both connect to a spreadsheet you already keep and send quarterly updates and the tax return. Prices checked 31 October 2026; confirm on HMRC's software finder.
Landlord · wants new software for records · VAT registered
Landlord who wants new software for records and is VAT registered: consider Xero (Ignite £18 a month excl. VAT, includes VAT returns) or Coconut (£12.99 a month; HMRC lists UK and foreign property). HMRC’s finder lists UK and foreign property, and MTD for VAT, for both. Prices checked 31 October 2026; confirm on HMRC's software finder.
Landlord · wants new software for records · not VAT registered
Landlord who wants new software for records and is not VAT registered: consider Xero (Simple plan £7 a month excl. VAT, UK and foreign property) or FreeAgent (Landlord plan £10 a month excl. VAT, UK property only). Both list UK property on HMRC’s finder; only Xero lists foreign property. Prices checked 31 October 2026; confirm on HMRC's software finder.
Sole trader and landlord · keeps records in a spreadsheet · VAT registered
Sole trader and landlord who keeps records in a spreadsheet and is VAT registered: consider My Tax Digital (free, also files MTD for VAT) or VitalTax (Excel add-in, £30 + VAT a year, also files VAT). Both bridge from a spreadsheet and are recognised for MTD for VAT too. Prices checked 31 October 2026; confirm on HMRC's software finder.
Sole trader and landlord · keeps records in a spreadsheet · not VAT registered
Sole trader and landlord who keeps records in a spreadsheet and is not VAT registered: consider My Tax Digital (free bridging mode) or 123 Sheets (£19.75 a year first year, ex. VAT). Both connect to a spreadsheet you already keep and send quarterly updates and the tax return. Prices checked 31 October 2026; confirm on HMRC's software finder.
Sole trader and landlord · wants new software for records · VAT registered
Sole trader and landlord who wants new software for records and is VAT registered: consider Xero (Ignite £18 a month excl. VAT) or QuickBooks (Simple Start plan, UK property only; see the QuickBooks pricing page). Both cover self-employment, property income and MTD for VAT. Prices checked 31 October 2026; confirm on HMRC's software finder.
Sole trader and landlord · wants new software for records · not VAT registered
Sole trader and landlord who wants new software for records and is not VAT registered: consider Xero (Simple plan £7 a month excl. VAT) or Coconut (£12.99 a month, includes HMRC Assist). Both cover self-employment, UK property and foreign property on HMRC’s finder. Prices checked 31 October 2026; confirm on HMRC's software finder.
Start with your situation
- Sole tradersEvery product in our table covers self-employment except Hammock.
- LandlordsCheck your share of gross rent, the year’s threshold, and which software fits.
- VAT registeredPick one tool for MTD for VAT and MTD for ITSA.
MTD for ITSA software compared
Nine products from HMRC's software finder, which listed 103 products for individuals on 31 October 2026. HMRC does not recommend any of them.
| Software | Type (HMRC finder) | Income sources | MTD for VAT | Free option | Price (vendor site) | Visit |
|---|---|---|---|---|---|---|
| FreeAgent | Creates records | Sole trader, UK property | Yes | With NatWest, RBS, Ulster Bank or Mettle | Sole trader: £19/month · £190/yearexcl. 20% VAT · 50% off first 6 months (£9.50/month) or first year (£95)Landlord: £10/month · £100/yearexcl. 20% VAT · 50% off first 6 months (£5/month) or first year (£50)Price source: www.freeagent.com, checked 31 Oct 2026 | Visit |
| Xero | Creates records | Sole trader, UK property, Foreign property | Yes | No (one month free offer) | Simple (non-VAT registered): £7/month · £84/yearexcl. VAT · First 6 months £0.70/month (90% off), then £7/monthIgnite (includes VAT returns): £18/month · £216/yearexcl. VAT · First 6 months £1.80/month (90% off), then £18/monthPrice source: www.xero.com, checked 31 Oct 2026 | Visit |
| QuickBooks | Creates records | Sole trader, UK property | Yes | No (30-day trial) | Sole Trader Plus: Current price is on the QuickBooks pricing pageSimple Start (adds VAT submission): Current price is on the QuickBooks pricing pageEssentials: Current price is on the QuickBooks pricing pagePlus: Current price is on the QuickBooks pricing pageSole Trader Plus, Simple Start, Essentials and Plus are each described by QuickBooks as ready for MTD for ITSA; 30-day free trial availablePrice source: quickbooks.intuit.com, checked 31 Oct 2026 | Visit |
| Sage Sole Trader | Creates records | Sole trader, UK property | No | Yes: Sole Trader Free | Sole Trader Free: Free (£0)Sole Trader: £7/month · £84/yearexcl. 20% VAT · 90% off first 6 monthsPrice source: www.sage.com, checked 31 Oct 2026 | Visit |
| Coconut | Records + bridging | Sole trader, UK property, Foreign property | Yes | Coconut Free listing; free 2 years with Zempler | MTD filing: £12.99/month · £129.99/year14-day free trialMTD Bridging (spreadsheets): £49.99/yearAnnual onlyPrice source: www.getcoconut.com, checked 31 Oct 2026 | Visit |
| Hammock | Records + bridging | UK property, Foreign property | No | 30-day trial | Basic, 1–3 properties: £8/month · £76.80/year+VAT · Annual billing saves 20%Standard, 4–10 properties: £15/month · £144/year+VAT · Annual = 12 × monthly less 20%Plus, 11–20 properties: £25/month · £240/year+VAT · Annual = 12 × monthly less 20%Beyond, 21+ properties: From £31.50/mo ex VAT (£302.40/yr), confirmed by property countPrice source: www.usehammock.com, checked 31 Oct 2026 | Visit |
| 123 Sheets | Records + bridging | Sole trader, UK property, Foreign property | Yes | Free demo | £19.75/yearex. VAT · First-year price, including the 50% discount on the vendor page. No later-year price is published there.Price source: 123sheets.com, checked 31 Oct 2026 | Visit |
| VitalTax | Bridging only | Sole trader, UK property, Foreign property | Yes | First submission free | £30/year+ VAT · First submission freePrice source: www.vitaltax.co.uk, checked 31 Oct 2026 | Visit |
| My Tax Digital | Records + bridging | Sole trader, UK property, Foreign property | Yes | Yes, free | Free (£0)Price source: mytaxdigital.co.uk, checked 31 Oct 2026 | Visit |
Income-source and VAT statuses are copied from each product's HMRC finder page, checked 31 October 2026.Prices are list prices from each vendor pricing page on the same date, before introductory discounts. A pricing-page link is the source for the price only.
The short answer
- Cheapest: My Tax Digital. Free, and HMRC lists it for sole trader, UK property and foreign property income.Visit My Tax Digital
- Best value for landlords: Xero. Simple plan £7 a month excl. VAT. HMRC’s finder lists foreign property as Ready now.Visit Xero
- Best for sole traders: FreeAgent. VAT returns and payroll on the £19 plan, free with NatWest, RBS, Ulster Bank or Mettle.Visit FreeAgent
Head-to-head comparisons
- FreeAgent vs Xero for Making Tax Digital — price, foreign property, payroll and VAT side by side.
The basics in 30 seconds
- MTD for ITSA applies from 6 April 2026 if your qualifying income was over £50,000 in 2024 to 2025. Read the full MTD for ITSA guide.
- You send 4 quarterly updates and a tax return from your software. See HMRC's steps.
- Happy with your spreadsheet? Compare bridging software.
Sources (GOV.UK)
- Find out if and when you need to use Making Tax Digital for Income TaxSource: GOV.UK, published , updated
- Choose the right software for Making Tax Digital for Income TaxSource: GOV.UK, published , updated
- Find software that works with Making Tax Digital for Income TaxSource: GOV.UK, published , updated
- Sign up for Making Tax Digital for Income TaxSource: GOV.UK, published , updated
- HMRC software finder: Find software that works with Making Tax Digital for Income TaxSource: HMRC service on GOV.UK, checked
Frequently asked questions
What is the cheapest HMRC-recognised MTD for ITSA software?
On 31 October 2026, My Tax Digital was free for quarterly updates and the tax return, and Sage Sole Trader Free cost £0 for non-VAT registered sole traders and UK landlords. FreeAgent is free if you hold a NatWest, RBS or Ulster Bank business account or an active Mettle account. All three appear on HMRC's software finder.
When do I need MTD for ITSA software?
GOV.UK says you need it from 6 April 2026 if your qualifying income was over £50,000 in 2024 to 2025, from 6 April 2027 if it is over £30,000 in 2025 to 2026, and from 6 April 2028 if it is over £20,000 in 2026 to 2027.
Can I keep using spreadsheets for Making Tax Digital?
Yes. GOV.UK says you can keep records in spreadsheets and use software that connects to them, sometimes called bridging software, to send quarterly updates and your tax return to HMRC.
Does HMRC recommend a particular MTD software?
No. HMRC's software finder says it does not recommend any product. Every product listed has passed HMRC's recognition process, so the choice comes down to price, income sources and features.