The best MTD software for UK sole traders and landlords

From 6 April 2027, around 1,077,000 more sole traders and landlords will need to keep digital records and send quarterly updates to HMRC (HMRC, October 2026). HMRC lists 171 compatible products, which is a lot to wade through. We narrowed it down to the 9 that suit most people, and checked every price on the provider's own website in October 2026.

Our top picks at a glance

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.

The best MTD software in detail

Xero is the one we'd pick if you expect your business to grow. It handles MTD for Income Tax for both self-employment and property income, and there's a cheap Simple plan at £7 a month made for sole traders and landlords. You can move up to plans with VAT returns, payroll and CIS without switching software. Its app is rated 4.8 on the UK App Store, and most UK accountants know it well.

Watch out for: Simple does not do VAT returns, and automatic bank reconciliation is a paid add-on on the cheapest plans. Full price: Simple £7, Ignite £18, Grow £39, Comprehensive £55, Ultimate £70 a month, all ex VAT. Promotional discounts often run for new customers.

FreeAgent is excellent software, and it costs nothing if you have a NatWest, RBS or Ulster Bank business account, or a Mettle account with at least one transaction a month. It shows a running tax estimate, so you always know roughly what you'll owe. It also has a separate £10 landlord plan. FreeAgent has no affiliate programme, so we earn nothing if you choose it. We still rank it highly because it's simply very good.

Watch out for: without an eligible bank account it costs £19 a month for sole traders, which is more than Xero Simple.

Clear Books offers genuinely free MTD plans for sole traders and for landlords, including foreign property. There's no time limit, which is rare. Paid plans start at £5 a month and add bank feeds. It also supports CIS. It's a solid UK-built choice if your affairs are simple and you'd rather not pay.

Watch out for: its mobile app is poorly rated (2.9 on iOS), so it's better on a laptop. The free plans have no bank feeds, so you type transactions in yourself.

QuickBooks Sole Trader Plus costs £10 a month and is built around your phone. You can snap receipts, track mileage with GPS and see a live tax estimate. Its apps are rated 4.6 to 4.7. It's a strong choice for tradespeople and drivers who spend the day on the move.

Watch out for: the Sole Trader plan only suits landlords with one property, and it does not do VAT returns. QuickBooks' intro offers apply to new customers and change often.

Sage Sole Trader has a free plan that covers MTD for Income Tax for non-VAT sole traders and landlords. The paid plan is £7 a month and removes the limits on invoices and automatic categorisation. Its dedicated app is rated 4.7 to 4.8.

Watch out for: the free plan limits invoices and auto-categorised transactions each month. If you need VAT returns you'll move to Sage Accounting, which costs more.

Zoho Books' free plan is unusually generous. It includes MTD for Income Tax and VAT returns, for one user and up to 1,000 invoices a year. Its apps score 4.8 on both stores. It suits people who invoice a lot or are VAT registered but don't want a monthly bill.

Watch out for: bank feeds start on the £12 Standard plan, and the interface has more options than a simple sole trader needs.

Hammock is built only for landlords. It pulls in your bank transactions and sorts them by property, then sends your quarterly updates. Pricing is by property count, from £8 a month for 1 to 3 properties. Read our Hammock review or compare it with Landlord Vision.

Landlord Vision combines accounts, tenancy tracking and compliance reminders (gas safety, EPC, insurance). It's the stronger pick once you have 4 or more properties or want to manage tenancies in the same place as your tax. Plans start at £7.99 a month for 4 tenancies on annual billing.

123 Sheets is bridging software. You keep your Excel or Google Sheets records, and it sends the figures to HMRC. At £19.75 a year per taxpayer, it's the cheapest compliant route we found. HMRC confirms bridging software is allowed (GOV.UK). Compare it with others in our bridging software guide.

How to choose MTD software in 4 questions

1. Do you bank with NatWest, RBS, Ulster Bank or Mettle? Try FreeAgent first, because it's free for you.
2. Is your income mainly rent? Choose landlord software such as Hammock, Landlord Vision or Clear Books' Property plan. See best MTD software for landlords.
3. Do you love your spreadsheet? Keep it and add bridging software.
4. Are you VAT registered or planning to hire? Pick software that grows with you, such as Xero, QuickBooks or Zoho Books.

Still unsure? Our 5-question Which MTD software is right for me? quiz gives you three matches.

What MTD software must do

HMRC says compatible software must let you (GOV.UK):

• keep digital records of your self-employment and property income and expenses
• send quarterly updates to HMRC, due by 7 August, 7 November, 7 February and 7 May
• submit your tax return by 31 January after the tax year ends

Every product in our table does all three for at least sole traders. Check landlord support carefully, because some cheap plans only cover one property.

Who should not buy paid MTD software yet

How we chose these

We started from HMRC's official list of MTD for Income Tax software. Then we scored each product on price, free plan, landlord support, ease of use, app ratings, bank feeds and support. Affiliate commission plays no part in the scores. Two of our top picks (FreeAgent and Hammock) pay us nothing. Read how we test.