Best MTD Income Tax software for UK sole traders

HMRC's Making Tax Digital for Income Tax becomes mandatory from April 2026 for sole traders and landlords with qualifying income above £50,000. To stay compliant you need HMRC-recognised software that can submit quarterly updates and your final declaration directly to HMRC. Below is our independent ranking of the four packages most UK sole traders and landlords compare.

FreeAgent (NatWest)

From £11/month + VAT

Best for: UK sole traders & micro limited companies who want a simple all-in-one package

4.5 / 5

Read review FreeAgent: Affiliate link pending enrolment

Xero Limited

From £16/month (Starter) — £48/month (Premium)

Best for: Sole traders & landlords who want a mature ecosystem and lots of integrations

4.3 / 5

Read review Xero: Affiliate link pending enrolment

Intuit

From £13/month (Simple Start) — £35/month (Advanced)

Best for: Sole traders & small businesses already in the Intuit ecosystem

4.2 / 5

Read review QuickBooks: Affiliate link pending enrolment

Sage Group

From £12/month (Accounting Start) — £36/month (Accounting Plus)

Best for: Established UK businesses & landlords who want a recognisable UK brand

4.0 / 5

Read review Sage Accounting: Affiliate link pending enrolment

How we ranked these

Our rankings are based on a placeholder methodology: HMRC MTD recognition, MTD-specific feature coverage, ease of use for sole traders, value for money, and integration ecosystem. We will publish the full testing methodology before launch. Note: we do not rank by affiliate commission — see our affiliate disclosure.

New to MTD?

Read our plain-English guide: What is Making Tax Digital for sole traders?

Torn between two packages? Start with our head-to-head: FreeAgent vs Xero.