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MTD software for accountants & bookkeepers

From April 2026 your sole trader and landlord clients need MTD-compatible software. Here's how to choose tools across a client base and submit as their agent.

If you're an accountant or bookkeeper, MTD for Income Tax reshapes how you work with sole trader and landlord clients — quarterly updates in place of a single annual return. The software question is really two: what your clients use day to day, and how you review and submit on their behalf as their agent.

Things to think about

Recommended software

6 providers match this situation. Free options first.

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Free with NatWest / Mettle

FreeAgent

Free if you have a NatWest Group business account — otherwise £19–£33/mo.

FreeHMRC-recognised

FreeAgent is a polished UK-built accounting platform owned by NatWest. It's free if you hold a business current account with NatWest, Royal Bank of Scotland or Ulster Bank, or a free Mettle business account — and you make at least one transaction a month. Outside that, it's a paid subscription. Strong for sole traders and landlords wanting automation.

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Xero

The accountants' favourite. Simple plan is good value.

From £7/moHMRC-recognised

Xero is the most widely used cloud accounting platform among UK accountants. The £7/mo Simple plan is the cheapest entry from a major provider and covers most sole trader or landlord needs for MTD.

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Crunch

Accounting software plus access to real accountants.

From £10/moHMRC-recognised

Crunch combines online accounting software with access to real accountants, aimed at freelancers, contractors and small businesses. HMRC-recognised, with full MTD Income Tax support for the April 2026 rollout.

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QuickBooks

Big US brand with strong UK MTD support.

From £12/moHMRC-recognised

QuickBooks Online is Intuit's cloud accounting product. Regular heavy discounts (often 90% off for 6 months) make it effectively cheap to start. Full MTD VAT and Income Tax support.

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Sage Accounting

Established UK brand, trusted by accountants.

From £15/moHMRC-recognised

Sage's cloud accounting product. Solid, enterprise-backed, wide accountant adoption. Has a dedicated landlord flow.

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Sage 50

Desktop-rooted accounting for established businesses.

From £20/moHMRC-recognised

Sage 50 (formerly Sage 50cloud) is Sage's long-standing desktop-based accounting software with cloud connectivity. MTD Income Tax submission for sole traders is built into version 33.1 and later, on subscription licences. It's a heavier, more expensive product than Sage's cloud-only Sage Accounting.

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What you need to know

Two jobs: client records and agent submission

Under MTD for Income Tax there are two distinct roles. The software keeps your client's digital records — income, expenses, categorisation — and you, as their agent, review the figures and submit the quarterly updates and final declaration to HMRC. Some platforms (Xero, QuickBooks, Sage, FreeAgent) have dedicated practice or agent dashboards that let you see every client in one place; others are client-facing only. If you act for more than a handful of clients, a proper practice dashboard saves significant time.

You need an HMRC agent services account

To act for clients under MTD for Income Tax you need an HMRC agent services account (ASA). This is separate from the older HMRC online services for agents. Each client also has to authorise you digitally through the ASA before you can submit on their behalf. Set this up well before April 2026 — it's the step practices most often leave too late.

Standardise on one platform, or stay flexible?

Putting every client on a single platform makes training, support and bulk work far more efficient — one system to know, one set of quirks. The trade-off is client preference and cost: some clients already use a tool they like, and a £7/mo plan suits a small client better than a fuller subscription. Most practices land on a primary platform plus tolerance for a small mix. Decide deliberately rather than drifting into supporting ten different tools.

Which clients are in scope, and when

MTD for Income Tax phases in by qualifying income: from April 2026 for clients with combined self-employment and property income over £50,000, April 2027 over £30,000, and April 2028 over £20,000. Review your client list now and segment it by threshold and start date. Clients below the thresholds stay on regular Self Assessment — be ready to explain why some clients move and others don't.

Frequently asked questions

Do accountants need their own MTD software?+

You need software that can submit quarterly updates as an agent, plus an HMRC agent services account. Most major platforms — Xero, QuickBooks, Sage and FreeAgent — include agent or practice tools for managing and submitting across multiple clients.

What is an HMRC agent services account?+

An agent services account (ASA) is the HMRC account agents use to access MTD services and submit on clients' behalf. It is separate from older HMRC online services for agents. You need one — and a digital authorisation from each client — to act for them under MTD for Income Tax.

Can I keep all my clients on one platform?+

You can, and many practices do — one platform is far more efficient for training, support and bulk submissions. In practice most accountants standardise on a primary platform while tolerating a small mix, because some clients have existing tools or tighter budgets.

Is there free MTD software accountants can use for clients?+

Yes. HMRC's own free tool, QuickFile and Pandle all have free tiers suitable for simple clients. For managing many clients at once, the paid platforms' agent and practice dashboards are usually worth the cost in time saved.

When do my clients need to comply with MTD for Income Tax?+

From April 2026 for clients with qualifying income over £50,000, April 2027 over £30,000, and April 2028 over £20,000. Qualifying income combines self-employment and property income.