MTD software compared
A side-by-side look at selected recognised options for sole traders and landlords, organised by situation. Pricing changes regularly, so always confirm directly before you commit.
How to use this page
This page compares selected HMRC-recognised MTD software options commonly used by sole traders and landlords. It covers cloud accounting software (split by VAT status, since that determines which plans are available to you), landlord-specific tools, and bridging software for spreadsheet users. It is not exhaustive. Use HMRC's software finder as the live reference for all recognised products.
The right fit depends on your income type, transaction volume, and how you currently keep your records. No single product wins across every situation, which is why the tables are organised by use case rather than by popularity or price alone.
This page does not declare a winner. If you want a direct recommendation for your situation, that is on our recommended MTD software page.
A note on pricing. All prices exclude VAT and were verified in July 2026. Where an annual option exists, the monthly equivalent is shown. Software pricing changes frequently, and introductory discounts of up to 90% for the first six months are common across all four cloud providers. The standard ongoing price is what you will pay once any introductory period ends. Treat the figures here as a guide and check directly with each provider before committing.
Cloud accounting software
These products handle your record-keeping, bank reconciliation, and MTD submissions in one place. Xero, QuickBooks, FreeAgent, and Sage are all HMRC-recognised for MTD for Income Tax.
Whether you are VAT-registered affects which plans are available to you, so the tables below are split accordingly. All prices exclude VAT and were verified in July 2026. Check the provider's own pricing page before committing, as prices change.
Non-VAT registered sole traders
| Product | Monthly (ex VAT) | If paid annually (ex VAT) | Notes |
|---|---|---|---|
| Sage Sole Trader Free | Free | n/a | 25 auto-categorised transactions/month cap, 5 invoices/month cap |
| Xero Simple | £7 | n/a | 10 invoices/month cap |
| Sage Sole Trader | £7 | n/a | |
| QuickBooks Sole Trader Plus | £10 | £9 | |
| FreeAgent | £0*/£19 | £16 | *Free with qualifying NatWest, RBS, Mettle or Ulster Bank account. Includes payroll |
Prices exclude VAT and may change. Xero and Sage are billed monthly only - no annual option. Some software labels the year-end tax return as "Final Declaration"; both terms refer to the same submission. Prices and plan availability can change without notice; the provider's own pricing page should be treated as definitive.
VAT-registered sole traders
| Product | Monthly (ex VAT) | If paid annually (ex VAT) | Notes |
|---|---|---|---|
| Xero Ignite | £16 | n/a | 20 invoices/month cap, 10 bills/month cap |
| QuickBooks Simple Start | £16 | £14 | |
| FreeAgent | £0*/£19 | £16 | *Free with qualifying NatWest, RBS, Mettle or Ulster Bank account. Includes payroll |
| Sage Start | £20 | n/a | Includes payroll |
Prices exclude VAT and may change. Xero and Sage are billed monthly only - no annual option. Some software labels the year-end tax return as "Final Declaration"; both terms refer to the same submission. Prices and plan availability can change without notice; the provider's own pricing page should be treated as definitive.
All four providers support bank feeds and allow your accountant to access your records directly. Check that the specific plan you are considering covers both quarterly updates and the year-end tax return before committing, as coverage can vary between tiers.
Landlord-specific software
These products are built around property income rather than general business accounting. They tend to offer per-property reporting and rental management features that general tools do not.
| Product | Monthly (ex VAT) | If paid annually (ex VAT) | Notes |
|---|---|---|---|
| FreeAgent for Landlords | £0*/£10 | £8.33 | *Free with qualifying NatWest, RBS, Mettle or Ulster Bank account |
| Hammock | From £8 | From £6.40 |
Prices exclude VAT and may change. Hammock pricing is per-property band; the figures shown are for portfolios of 1-3 properties. Some software labels the year-end tax return as "Final Declaration"; both terms refer to the same submission. Prices and plan availability can change without notice; the provider's own pricing page should be treated as definitive.
If you also have self-employment income, see our MTD for landlords page for how multiple income sources work under MTD, including software considerations.
If you have both self-employment and property income
Most software treats sole trader income and property income as separate businesses requiring separate accounts and separate subscriptions. Xero is the exception. Using its multi-business feature, you can manage both income streams within one Xero account and submit separate quarterly updates for each from the same place.
In practice, you set up your sole trade and your UK property as separate tracked entities within Xero. The software keeps the records for each distinct, generates a separate quarterly update for each income stream, and submits both to HMRC. One subscription covers both.
Xero Simple at £7 per month covers this for non-VAT registered users. Xero Ignite at £16 per month is the equivalent for VAT-registered users. See our recommended MTD software page for more on which setup suits different situations.
Bridging software
If you already keep your records in a spreadsheet and do not want to switch to a full accounting package, bridging software is a recognised and legitimate option. It sits between your spreadsheet and HMRC, submitting the summary figures without changing how you keep your records.
Bridging software is often one of the lowest-cost routes to MTD compliance, particularly if you already keep good spreadsheet records. The trade-off is that you remain responsible for keeping accurate, complete digital records in your spreadsheet. The bridging tool only submits the figures you give it; it does not check them.
| Product | Price | Works with Excel | Works with Google Sheets | Quarterly updates | Year-end tax return | Property income | Self-employment + property |
|---|---|---|---|---|---|---|---|
| VitalTax | £30 + VAT/year | Yes (Excel add-in) | No | Yes | Yes | Yes | Yes |
| 123 Sheets | From approx. £30 + VAT/year | Yes | Yes | Yes | Yes | Yes | Yes |
| Forbes MTD | On application | Yes (CSV export) | Yes (CSV export) | Yes | Yes | Yes | Yes |
All three are HMRC-recognised for MTD for Income Tax. VitalTax installs as an Excel add-in and reads cells you map to HMRC submission fields. 123 Sheets provides a pre-formatted template with built-in submission capability. Forbes MTD works via CSV export from any spreadsheet, making it compatible with applications other than Excel. First quarterly submission with VitalTax is free. Some software labels the year-end tax return as "Final Declaration"; both terms refer to the same submission. Prices and plan availability can change without notice; the provider's own pricing page should be treated as definitive.
For the full detail on how bridging software works, including what counts as a compliant digital link, see our bridging software page.
What these tables do not tell you
The tables above cover the features and pricing that are easiest to compare objectively. A few things they do not capture are worth flagging before you decide.
Pricing changes frequently. Software providers adjust prices regularly, and introductory discounts of 50-80% for the first three to six months are common. The full-price figure is what you will pay once the promotional period ends. Check the provider's current pricing page directly before you commit.
Entry-plan caps matter. Some of the cheapest tiers have caps on invoices, bills, or transaction volumes. If you invoice frequently or have a high transaction count, check the limit before you build a quarter of records into something you might need to upgrade.
Quarterly updates and the year-end tax return are not always covered by the same tier. Verify that the specific plan you are looking at handles both, not just one.
How you want to work with your accountant affects the choice. If you want your accountant reviewing your records in real time, cloud accounting is the right route. If you are happy keeping your own spreadsheet and sending us the figures for submission, bridging software does the job at a fraction of the cost.
HMRC's software finder is worth a final check. The recognised software list changes as providers complete testing and as existing products add or remove features. Use HMRC's software finder directly before you sign up to confirm the product you are looking at still qualifies.
Common questions
Some options are free, with conditions. FreeAgent is free if you hold a qualifying business current account with NatWest, RBS, Mettle, or Ulster Bank - and that is the full product with no feature restrictions. Sage Sole Trader also has a permanently free tier for non-VAT registered sole traders, with caps on transactions and invoices. Free tiers always come with limits, so check the restrictions fit your situation before you rely on one.
Up to a point. Both get you to the same compliance destination: HMRC-recognised quarterly updates and a year-end tax return. The difference is in what you do with the other ten months of the year. Cloud accounting handles your record-keeping throughout the year inside the software, with bank feeds and automatic categorisation. Bridging software only handles the submission step; you keep your records in your spreadsheet and it connects them to HMRC. Cost, workflow, and how many records you have to track are what determine which is right for you, not compliance status.
No, but your software needs to handle all of your MTD business sources. MTD requires separate digital records and separate quarterly updates for each MTD business source: each sole trader business, one combined UK property business, and one foreign property business if applicable. Most full cloud accounting products handle both self-employment and property income within a single subscription. Some entry-tier products, and some landlord-specific tools, only cover one. Check before you commit that the product supports every income source you report.
We review the comparison tables when we become aware of pricing changes, new products being added to HMRC's recognised list, or existing products significantly changing their features. Software pricing and availability change more often than tax rules, so we treat this page as a guide rather than a live price list. The "last updated" date at the top of the page reflects when we last reviewed and updated the content. Always check the provider's own pricing page before signing up.
That is on a separate page. This comparison is deliberately neutral because the right choice depends on your specific situation, not on which product scores best in a generic feature table. Our recommendations, by situation, are on the recommended MTD software page.
This page is general guidance, not advice for your own circumstances. It was correct as at the date shown at the top, and software pricing and availability change regularly. Always verify directly with providers before committing. Please take advice on your own position before acting on anything here.
Want to know which software we would choose for your situation? We will give you a straight answer.
Book a free call