Do I actually have to pay for MTD software?

MTD legally requires you to keep digital records and submit them via MTD-compatible software. It does not require you to pay. Free options include: • HMRC's own free tool — for simple sole trader and landlord cases • QuickFile — free under 1,000 transactions per year • Clear Books Free — free tier for small traders • Zoho Books — free for turnover under £35,000 • My Tax Digital — free bridging and accounting modes • Starling Bank — free for Starling business account holders • VitalTax — free tier for low-volume Excel users If your affairs are more complex, paid tools (Xero, FreeAgent, QuickBooks) typically start at £7–£19/month. FreeAgent is free if you bank with NatWest Group. The "you must pay" headlines are misleading — the free route exists, it's just less heavily marketed.