MTD software for VAT + Income Tax

FreeAgent

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

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 at £19–£33 per month, pricier than Xero Simple (£7/mo) or QuickFile (free under 1,000 transactions/yr). Strong for sole traders, freelancers and landlords wanting guided workflows and built-in project profitability.

QuickFile

UK-built, genuinely free under 1,000 transactions/year.

QuickFile is a UK-built cloud accounting platform with a generous free tier, free for small businesses with fewer than 1,000 nominal ledger entries in a year, and £60/yr above that. Full MTD support for VAT and Income Tax, HMRC-recognised on the free tier with no MTD features held back behind the paywall. Probably the most capable free accounting tool in the UK market, with Pandle and Clear Books as the closest free alternatives.

Crunch

Accounting software plus access to real accountants, from free to £21.60+VAT/mo.

Crunch combines online accounting software with access to real accountants, aimed at freelancers, contractors and small UK businesses. HMRC-recognised with full MTD Income Tax support for the April 2026 rollout. The headline pitch is the bundling: Crunch Free covers bookkeeping at no cost, Crunch Pro adds the full software for £10+VAT/mo, and Crunch Premium bundles the software with a named accountant for £21.60+VAT/mo and up. Limited company plans sit higher still, with VAT and payroll add-ons priced separately.

Xero

The accountants' favourite. Simple plan is good value.

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.

QuickBooks

Big US brand with strong UK MTD support.

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.

Sage Accounting

Established UK brand, trusted by accountants.

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

Sage 50

Desktop-rooted accounting for established businesses.

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.