Making Tax Digital software, compared in plain English
Quick answer
For most sole traders, Xero (from £7 a month) is the best all-round MTD software, and FreeAgent is free if you bank with NatWest, RBS, Ulster Bank or Mettle. Clear Books has free MTD plans, and landlords should look at Hammock or Landlord Vision.
Making Tax Digital (MTD) for Income Tax means keeping digital records and sending HMRC a short update every three months. We compare the software that does it for you, explain the rules in plain English, and check every price ourselves. No jargon, no panic.
- Independent, not owned by any software firm
- Prices checked October 2026
- Every rule cited to GOV.UK
- Free tools, no sign-up
From 6 April 2027, around 1,077,000 more sole traders and landlords will need to use MTD (GOV.UK). If that might include you, the quiz below suggests three options in about a minute. If you're not sure you need MTD at all, start with our Do I need MTD? checker.
Which MTD software is right for me?
Answer 5 quick questions. We'll suggest 3 options that fit, with honest reasons.
When does MTD start? The timeline
Your start date depends on your qualifying income. That's your total income from self-employment and property before expenses (GOV.UK).
- 6 April 2026: MTD started for people with qualifying income over £50,000 in the 2024 to 2025 tax year.
- 6 April 2027: people with qualifying income over £30,000 in 2025 to 2026 join. HMRC estimates around 1,077,000 more sole traders and landlords.
- 6 April 2028: people with qualifying income over £20,000 in 2026 to 2027 join.
- Every quarter: updates are due by 7 August, 7 November, 7 February and 7 May. Your tax return is still due by 31 January (GOV.UK).
Where do you want to start?
- Best MTD softwareOur top 9 picks for sole traders and landlords
- Free MTD softwarePlans that cost nothing for simple affairs
- Best landlord softwareTools that sort income and costs by property
- Bridging softwareKeep your spreadsheet and file to HMRC
- MTD for sole tradersThe complete plain-English guide
- MTD for landlordsJoint property, Airbnb and mixed income
- Renters' Rights Act checklistWhat landlords in England need to do
- Do I need MTD?Free 30-second checker
Our top 5 MTD software picks
These five suit most people. We scored them on price, free plans, landlord support, ease of use and app ratings, based on our review of features, pricing and user ratings. Commission plays no part.
| Software | Price (checked October 2026) | MTD for Income Tax | Free tier | Landlord features | App rating | Best for | Link |
|---|---|---|---|---|---|---|---|
| Xero | From £7/month (Simple) | Yes | No (1 month free trial) | Yes | 4.8 iOS / 4.5 Android | Sole traders who expect to grow, register for VAT or hire | Visit site |
| FreeAgent | From £10/month (Landlord) or £19/month (Sole trader). Free with NatWest, RBS, Ulster Bank or Mettle | Yes | Yes, with eligible bank | Yes | 4.8 iOS / 4.7 Android | NatWest, RBS, Ulster Bank and Mettle customers (free) | Visit site |
| Clear Books | Free MTD plans, or from £5/month | Yes | Yes | Yes (Property plans, incl. foreign property) | n/a iOS / 2.8 Android | Anyone who wants genuinely free MTD software, including landlords | Visit site |
| QuickBooks | From £10/month (Sole Trader Plus) | Yes | No (30-day trial) | Single property only on Sole Trader Plus | 4.7 iOS / 4.6 Android | Sole traders who want strong mobile receipt capture and mileage tracking | Visit site |
| Hammock | From £8/month (1 to 3 properties) | Yes | No (30-day trial) | Yes (built for landlords) | 2.6 iOS / n/a Android | Landlords who want automatic bank feeds sorted by property | Visit site |
Prices exclude VAT unless stated and were checked on each provider's website in October 2026. Introductory offers change often, so always confirm the live price. App ratings are from the UK App Store and Google Play in October 2026.
See all nine in our best MTD software guide, or read the full software reviews. Torn between two? Try Xero vs QuickBooks.
Renters' Rights Act: what landlords need to know
If you let property in England, MTD is not the only change. The Renters' Rights Act 2025 is coming in by phases (GOV.UK):
- From 1 May 2026: section 21 "no fault" evictions ended and tenancies became periodic. Rent can rise only once a year.
- From late 2026: a new Private Rented Sector Database, with mandatory registration and an annual fee.
- Later: a Landlord Ombudsman, with membership expected to become mandatory in 2028.
Our Renters' Rights Act landlord checklist sets out what to do, step by step.
Why trust us?
We're a small independent editorial team. No software company owns us or pays for a place in our lists. Here's how we keep it honest:
- Rules from the source. Every rule, date and threshold links to GOV.UK.
- Prices checked by hand. We check each price on the provider's own website. These were checked in October 2026. Intro offers change, so always confirm the live price.
- Honest about money. Some links earn us a commission. FreeAgent, Hammock, Pandle, Coconut and 123 Sheets pay us nothing, and we still rank them on merit.
- Honest about method. We base our scores on features, pricing and user ratings. Read how we test and our editorial policy.
An example: Sam, a self-employed plumber, earns £34,000 a year before expenses and £19,000 after. MTD looks at the £34,000, so Sam joins from 6 April 2027 if that was his 2025 to 2026 figure. (Sam is an illustration, not a real customer.)
Frequently asked questions
What is the best MTD software for sole traders?
Based on our review of features, pricing and user ratings, Xero is the best all-round choice, with a Simple plan at £7 a month ex VAT. FreeAgent is the best pick if you bank with NatWest, RBS, Ulster Bank or Mettle, because it's free for you. See our best MTD software for sole traders.
Is there free MTD software?
Yes. HMRC does not provide its own software, but some providers have free plans for simple affairs. Clear Books, Sage Sole Trader Free and Zoho Books Free are examples. Read our free MTD software guide.
When does Making Tax Digital start for me?
It depends on your qualifying income. Over £50,000 means 6 April 2026, over £30,000 means 6 April 2027 and over £20,000 means 6 April 2028. Our free MTD checker tells you your date in 30 seconds.
Do landlords need MTD software?
Yes, if your qualifying income is over the threshold. Gross rent counts, not profit, and for joint property only your share counts. See our MTD for landlords guide.
Can I keep using my spreadsheet for MTD?
Yes. HMRC allows bridging software, which links your spreadsheet to HMRC. 123 Sheets costs £19.75 a year per taxpayer ex VAT. Compare options in our bridging software guide.
Is Tax Software Compared owned by a software company?
No. We are independent. Some links are affiliate links, but commission never changes our scores or order, and some of our top picks, such as FreeAgent and Hammock, pay us nothing.
This page is general information, not personal tax, legal or financial advice. Tax rules can change and your situation may differ. For advice on your own affairs, speak to a qualified accountant or tax adviser, or check GOV.UK.