MTD software for sole traders: free and paid options compared.
Making Tax Digital for Income Tax means keeping digital records and sending HMRC quarterly updates. The cheapest suitable route depends on how you keep your records today. Below are the sole-trader options we have checked, grouped by type, each with its own checked date.
Tax-rule statements on this page were checked against GOV.UK on 10th October 2026. Prices and features were checked on the date shown beside each option.
When does MTD apply to a sole trader?
Qualifying income in the 2024 to 2025 tax year.
Qualifying income in the 2025 to 2026 tax year.
Qualifying income in the 2026 to 2027 tax year.
Qualifying income means your total income from self-employment and property before expenses, taken from an earlier tax return. The threshold is "over", so income of exactly £30,000 is not above the £30,000 threshold. This is general information, not tax advice. Check your own position on GOV.UK or with HMRC.
What software has to do
For a sole trader, MTD software needs to keep digital records of your income and expenses, or link a spreadsheet to HMRC, and send your quarterly updates and your end-of-year figures to HMRC. If you are VAT registered, or have other income sources, check that the product covers them before you commit.
Loading the checked options. If nothing appears, see the full comparison table.
Estimated costs use each provider's standard published price, with temporary discounts ignored. "Free" can still carry limits, so read the catch beside each option. HMRC does not recommend individual products.
Not sure which type suits you?
Our finder asks eight questions about your records, income and what you want the software to do, then shows the routes that fit. We refuse to guess for complicated cases and point you to HMRC instead.
How we rank and how we make money
Options are ordered by whether they fit your situation, the features you need, and standard ongoing cost. Commission never changes the order. Some provider links may be marked Ad because we may earn a fee if you sign up through them. Read how we rank and how we make money.