Every HMRC-recognised Making Tax Digital software option — from completely free to £50/month. Pricing, features, pros, cons, and who each is best for. All data verified May 2026.
Full-featured accounting software, completely free for qualifying customers of NatWest, Royal Bank of Scotland, Ulster Bank, and Mettle business accounts. No time limit on the free access. One of the few routes to full MTD ITSA coverage at zero cost — with no transaction caps or feature limitations compared to paid plans.
Sage Accounting's free entry tier provides MTD ITSA and MTD VAT access with a limit of 5 sales invoices per month and 25 AI-categorised transactions. One of the few MTD ITSA options that is genuinely free without banking conditions. Suitable for very small sole traders with minimal invoicing, such as consultants with a handful of regular clients.
QuickFile offers the most generous free tier of any HMRC-recognised MTD provider — up to 1,000 transactions per year at zero cost, with MTD for VAT included. Strong UK-specific features and a loyal following among small businesses. No bank-account conditions. MTD ITSA status — check QuickFile's published roadmap for the latest position.
Pandle's free tier offers clean, simple bookkeeping and MTD for VAT. The interface is more modern and intuitive than many free alternatives. MTD ITSA features are rolling out on the Pro plan. Best for budget-conscious sole traders who need basic records and MTD VAT without complex features. Good stepping-stone before committing to paid software.
The lowest-priced MTD ITSA-compliant plan from a major provider at £7/month (ex-VAT). Unlimited invoicing, bank feeds, receipt capture, and — uniquely — payroll included at no extra cost. If you employ even one person or pay yourself through PAYE as a CIS subcontractor, Sage's built-in payroll represents significant savings vs Xero or QuickBooks add-ons.
The cheapest paid MTD software at £5/month. Adds bank feeds and more automation to the free tier. MTD ITSA is rolling out — check Pandle's current roadmap for your specific plan. Excellent value for very simple sole traders who want an upgrade from spreadsheets without spending significant money on accounting software.
The most affordable full MTD ITSA plan from a major provider at the standard price. Previously QuickBooks Self-Employed — automatically migrated by Intuit during 2025/early 2026. Includes invoicing, expense tracking, mileage tracking, SA103 generation, bank feeds, and receipt capture via the QuickBooks mobile app. Introductory pricing is often available at significant discount.
Every paid Xero plan (Simple, Grow, Comprehensive, Ultimate) handles the full MTD ITSA workflow. Xero's Simple plan at £15/month is a solid sole-trader entry point. Grow (£30/mo) and above suit growing businesses needing multiple users, expenses claims, and project tracking. Best-in-class app marketplace with 1,000+ integrations and the most capable practice management tools (Xero HQ).
FreeAgent's standalone subscription (for those not banking with NatWest/RBS/Mettle) at approximately £29/month. Flat-fee pricing means every feature is included — no tiered feature lockouts. Excellent for contractors, freelancers, and sole traders who want the most UK-tailored tax experience and Self Assessment workflow. Particularly strong for CIS subcontractors and those with complex self-employment income.
| Software | Free tier? | Entry paid plan | MTD VAT | MTD ITSA | Payroll included? |
|---|---|---|---|---|---|
| FreeAgent (bank qualifying) | ✓ Full access | — | ✓ | ✓ | Add-on |
| Sage Accounting | ✓ (5 invoices/mo) | £7/mo | ✓ | ✓ | ✓ All plans |
| Pandle | ✓ Basic | £5/mo | ✓ | Rolling out | No |
| QuickFile | ✓ 1,000 transactions/yr | £60/yr | ✓ | Check roadmap | No |
| QuickBooks Sole Trader | No | £10/mo | ✓ | ✓ | Add-on |
| Xero Simple | No | £15/mo | ✓ | ✓ | 1 employee on Ignite |
| FreeAgent (standalone) | No | ~£29/mo | ✓ | ✓ | Add-on |
Prices ex-VAT. Verified May 2026. All pricing subject to change. Always check current pricing on the provider's website before subscribing. HMRC recognition status per HMRC's approved software list on GOV.UK.
Informational guide only — not personalised financial guidance. Pricing and feature data verified from each provider's published UK pricing pages as at May 2026. Software pricing, plans and features change frequently — always verify current pricing and MTD recognition status directly with each provider before subscribing. HMRC recognition verified against HMRC's approved software list on GOV.UK. Affiliate disclosure: links marked are affiliate links. UK Tax Hero may receive a commission if you purchase via these links at no additional cost to you. This does not influence which software is listed or how it is described.
