We independently tested and compared 10 Making Tax Digital software tools so you can find the right MTD-compliant solution — whether you're a sole trader, landlord, or small business.
Independent — rankings based on testing, not paid placement
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HMRC authorised — all listed tools are MTD-compliant
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Rated on 6 criteria incl. HMRC filing breadth & bank feeds
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Last reviewed April 2026
Making Tax Digital (MTD) is HMRC's programme requiring UK businesses to keep digital records and file tax returns using approved Make Tax Digital software. MTD for VAT has been mandatory since 2022. MTD for Income Tax becomes mandatory for sole traders and landlords earning over £50,000 from April 2026, and over £30,000 from April 2027.
This comparison covers the best Make Tax Digital software available in the UK — each tool is HMRC-recognised, independently tested, and ranked by our editorial team across six criteria including HMRC filing breadth, pricing, and ease of setup.
Showing 10 tools
⭐ EDITOR'S PICK — Our top-rated MTD software for 2026
#1
Ranked
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Xero
The UK's most trusted MTD accounting platform
⭐ Editor's PickBest overall30-day free trial
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4.7/5
Xero is the gold standard for MTD compliance. It covers VAT, Income Tax, and payroll all from one dashboard — with the most reliable bank feeds we tested.
FreeAgent offers the broadest HMRC filing coverage of any tool tested — VAT, Income Tax, payroll and CT600. If you bank with NatWest or RBS, it's free.
Zoho Books punches well above its price point. The free plan covers MTD VAT filing and the paid tiers unlock Income Tax and CT600 — ideal for growing businesses.
Clear Books is the standout choice for landlords and property investors — with a dedicated free tier, 70+ bank feeds, and the longest affiliate cookie of any provider (3 years).
Sage stands out for employers — payroll is included from the cheapest plan, not locked behind an expensive upgrade. A reliable choice for established small businesses.
Starling makes MTD filing almost invisible — the Income Tax tool is built directly into the banking app at no charge. The simplest experience for sole traders with straightforward finances.
Business bank account with MTD accounting built in
Best bank + accounting comboFree membership
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4.0/5
Tide combines a business bank account with MTD accounting tools in a single app. A strong choice if you want to consolidate banking and tax compliance without paying extra.
AI-powered business account with tax filing support
Best AI featuresFree PAYG option
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3.8/5
ANNA's AI-first approach automates the dull bits — receipt scanning, invoice chasing, and expense sorting — while handling VAT and payroll. PAYG pricing suits very small or seasonal businesses.
Countingup is the budget pick — from £3/month you get MTD VAT filing and a business bank account. Perfect for micro businesses and sole traders who need simplicity above all else.
Transparent affiliate programme with solid VAT tools
Best transparent pricing14-day free trial
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3.5/5
KashFlow is a solid workhorse for VAT-registered businesses, particularly those in construction using CIS. The transparent affiliate structure (£2 per signup per month) is refreshingly honest.
Every tool listed has been independently tested by our editorial team against a standardised set of criteria. We create real business accounts, test live HMRC submissions in the MTD sandbox environment, and evaluate the day-to-day experience over a minimum 30-day trial period.
We accept no payment for rankings. Affiliate commissions (if any) are earned only when users choose to click through — they do not influence scores.
HMRC Breadth
VAT, Income Tax, Payroll RTI, CT600 coverage
Bank Feeds
Number of banks supported & feed reliability
Ease of Setup
Time to first MTD submission from zero
Pricing
Value for features offered; hidden fees
Support
Response times across chat, phone & email
Functionality
Invoicing, reporting, integrations depth
Frequently asked questions about Make Tax Digital software
What is Make Tax Digital software? +
Make Tax Digital software is HMRC-approved accounting software that lets UK businesses and sole traders keep digital records and submit tax returns directly to HMRC via an API. It is required for VAT-registered businesses and will be mandatory for self-employed people and landlords earning over £50,000 from April 2026.
Which is the best Make Tax Digital software for sole traders? +
The best Making Tax Digital software for sole traders depends on your priorities. FreeAgent is often free with NatWest or RBS and covers VAT, Income Tax, and payroll. Xero is the most feature-rich at £15/month. Starling Bank offers free MTD Income Tax filing built into its banking app — the lowest-cost option for simple finances.
Is Making Tax Digital software free? +
Yes — several MTD software options are free. FreeAgent is free for NatWest, RBS and Mettle business account holders. Zoho Books has a free plan for businesses with turnover under £35,000. Starling Bank includes free MTD Income Tax filing. Clear Books has a free property management tier for landlords.
When is MTD for Income Tax mandatory? +
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) becomes mandatory in two phases: from April 2026 for self-employed people and landlords with gross income over £50,000, and from April 2027 for those earning over £30,000. HMRC has confirmed these dates will not be delayed further.
What is the cheapest Make Tax Digital software? +
Countingup is the cheapest paid MTD software at £3/month, including a business bank account. For free options: FreeAgent (free with NatWest/RBS), Starling Bank (free Income Tax MTD), and Zoho Books (free plan up to £35k turnover). The right choice depends on whether you need VAT filing, payroll, or just Income Tax.
Affiliate disclosure: Some links on this page are affiliate links. If you sign up through them we may earn a commission at no extra cost to you. This helps keep our comparison free and independent. Our ratings are editorially independent.
