Sage MTD review: is Sage Sole Trader good for Making Tax Digital?

Sage is one of the oldest names in UK accounting software. For Making Tax Digital (MTD) for Income Tax, its main product is Sage Sole Trader, a simple app for self-employed people and landlords. The headline is that it has a free plan. In this review we explain what the free plan includes, where its limits are, and when you would need to pay. We checked every price on Sage's own website in October 2026.

Not sure if MTD applies to you yet? Our Do I need MTD? checker gives you your start date in about 30 seconds.

Price: how much does Sage cost?

Sage Sole Trader Free £0 (limits on invoices and auto-categorised transactions), Sage Sole Trader £7 a month. Sage Accounting Start £20, Standard £43 a month ex VAT.

Prices checked on Sage's website in October 2026, ex VAT. Sage often runs introductory offers for new customers, and these change, so always confirm the live price.

For most non-VAT sole traders, the choice is between the free plan and the £7 plan. Start free if your business is small and you send few invoices. Move to £7 a month if you hit the limits. If you're VAT registered, skip Sage Sole Trader and look at Sage Accounting, which costs more.

Is Sage good for MTD for Income Tax?

Yes. Sage Sole Trader supports MTD for Income Tax for self-employment and property income. It keeps digital records and sends your quarterly updates to HMRC. Updates are due by 7 August, 7 November, 7 February and 7 May (GOV.UK).

HMRC does not provide its own MTD software. It says you must use commercial software, and that some is free for people with simple affairs (GOV.UK). Sage Sole Trader Free is one of the best-known free options from a big brand.

Here's an illustration. Jo is a self-employed dog walker. Her turnover in 2025 to 2026 was £31,000, just over the £30,000 threshold, so she must use MTD from 6 April 2027 (GOV.UK). She isn't VAT registered and sends a handful of invoices a month. Sage Sole Trader Free may be enough for her. If she later needs more invoices, she can move to the £7 plan without switching software.

A small reassurance: HMRC won't give penalty points for late quarterly updates in the 2026 to 2027 tax year. Our MTD guide for sole traders walks through the steps.

Is Sage good for landlords?

Yes, for straightforward rental income. Sage Sole Trader covers landlords as well as the self-employed, so you can record rent and expenses and send quarterly updates for your property income. It's a sensible, low-cost choice for someone with one or two properties.

It's general software, though, not a landlord specialist. It doesn't focus on tenancies or safety certificate reminders. Portfolio landlords should compare options in our best landlord software guide.

Sage key features

• Bank feeds: yes. Bank feeds mean your bank transactions flow in automatically. Automatic sorting of transactions is limited on the free plan.
• Invoicing: yes, with a monthly limit on the free plan.
• Receipts: you can add receipts from your phone using the Sage Sole Trader app.
• VAT returns: not on Sage Sole Trader. VAT returns need a Sage Accounting plan, from £20 a month.
• CIS: on Sage Accounting Standard only. CIS (the Construction Industry Scheme) is where contractors take tax off subcontractors' pay. Your software should record CIS deductions, but check the details with HMRC or an accountant.
• Mobile app: the Sage Sole Trader app is rated 4.7 on the UK App Store and 4.8 on Google Play in October 2026.

Is Sage easy to use?

Based on its features and app ratings, Sage Sole Trader looks simple to use. It was built for people who only need the basics: income, expenses and MTD. The app scores are high, which suggests most users find it straightforward. If you later move to Sage Accounting for VAT, expect more screens and options to learn.

Sage pros and cons

Sage compared with alternatives

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.

Xero's Simple plan costs the same £7 a month and lets you grow into VAT and payroll. Read our Xero review or Xero vs Sage. QuickBooks costs £10 a month and is strong on receipts and mileage. See QuickBooks vs Sage. If you're VAT registered and want a free plan, Zoho Books includes VAT returns even on its free plan. Read our Zoho Books review.

How we reviewed Sage

This is a desk review. We looked at Sage's features and plans as the provider describes them, and checked every price on Sage's UK website in October 2026. We confirmed Sage appears on HMRC's list of software for MTD for Income Tax (GOV.UK). We checked app ratings on the UK App Store and Google Play. We have not done hands-on testing, so our view is based on features, pricing and user ratings. Sage pays us a commission if you sign up through our links, but this does not affect our score. Read how we test.

Final verdict: is Sage good for MTD?

Yes, for non-VAT sole traders and landlords. Sage Sole Trader gives you MTD for Income Tax from a trusted brand, with a free plan to start and a cheap £7 plan if you need more. Check the free plan's limits against how many invoices you send. If you're VAT registered, look at Sage Accounting or another provider instead. It scores 4.4 out of 5.

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