Cheapest MTD software for Income Tax
Every HMRC-recognised tool we track, ordered by the true VAT-inclusive annual cost of its cheapest plan. Unlike the vendors' 'from £X/month' headlines, these figures include VAT and reflect the lowest real annual price.
The very cheapest options are free tiers and bridging tools that file from a spreadsheet you already keep. Remember the cheapest tool overall isn't always the cheapest that fits you — if you have property income or want full bookkeeping, use the finder to see the cheapest option for your exact situation.
- Freetrue annual cost, VAT incl.
Landlord-focused with a genuinely free tier for small portfolios. Self-employment not covered.
- Freetrue annual cost, VAT incl.
Full cloud accounting with a genuinely free plan for all business types (with invoice limits) — rare among the serious tools. Strong if you're already in the Zoho ecosystem.
- from £19.99/yrtrue annual cost, VAT incl.
Bare-bones, very cheap MTD filer. Free for the first year, then under £20 — hard to beat on price if you don't need bookkeeping features.
- from £23.70/yrtrue annual cost, VAT incl.
Bridging software. If you already live in a spreadsheet, you keep it and 123 Sheets just submits the quarterly updates — by far the cheapest way to comply.
- 5.VitalTaxfrom £36/yrtrue annual cost, VAT incl.
An add-in that lives inside Excel or Google Sheets. No new app to learn — file straight from the spreadsheet you already use.
- from £69.99/yrtrue annual cost, VAT incl.
A guided tax filer rather than a full accounting system. Enter income and expenses, get tax-saving prompts, and submit. Good middle ground if spreadsheets feel too bare.
- 7.Coconutfrom £79.20/yrtrue annual cost, VAT incl.
Built from the ground up for sole traders and landlords under MTD — simple categorisation, no accounting jargon. Often supplied free through partner accountants.
- 8.Xerofrom £100.80/yrtrue annual cost, VAT incl.
Full cloud accounting. The Simple plan is purpose-built for MTD for Income Tax with bank-feed automation, so you do less typing.
- 9.Hammockfrom £115.20/yrtrue annual cost, VAT incl.
Landlord-only software that understands rent, arrears, mortgage interest and per-property profit. No self-employment support.
- 10.TaxCalcfrom £134.40/yrtrue annual cost, VAT incl.
A long-established self assessment tool with MTD bridging. Desktop-based, thorough, and trusted by people who already do their own returns.
- 11.QuickBooksfrom £144/yrtrue annual cost, VAT incl.
Widely used cloud accounting. The £10 Sole Trader plan covers self-employment and a single rental property if you're not VAT-registered; Simple Start adds VAT.
- 12.FreeAgentfrom £144/yrtrue annual cost, VAT incl.
Freelancer-favourite accounting with time tracking and project costing. Free for life with the right bank — which can make it the cheapest serious option by a mile.
- 13.APARIfrom £144/yrtrue annual cost, VAT incl.
An MTD specialist (now ApariPro) from the original HMRC pilot, covering self-employment and property with pre-filled returns and a 30-day free trial.
- from £216/yrtrue annual cost, VAT incl.
Established accounting software with strong accountant support and phone help. Mid-priced, no surprises.
- 15.FreshBooksfrom £216/yrtrue annual cost, VAT incl.
Invoicing-first accounting aimed at service freelancers. Great if you bill clients; not built for landlords.
Frequently asked questions
- What is the cheapest MTD software?
- The cheapest options are at the top of the table — typically a free tier or a low-cost bridging tool. The figures are true annual costs including VAT.
- Is there free MTD software?
- Yes — a few tools have genuine free tiers or are free with certain bank accounts. See our dedicated free MTD software list.
- Why is your price different from the vendor's headline?
- Vendors usually quote 'from £X/month' ex-VAT, often for a plan that doesn't cover everything you do. We show the VAT-inclusive annual cost of the cheapest plan that actually fits — read the methodology for detail.
- Is the cheapest option the best?
- Not always. Bridging tools are cheap but assume you keep your own spreadsheet; free tiers have limits. Weigh cost against how you actually want to work.
More guides
Ranked by true annual cost using the same engine as the finder; see how it works. Links are affiliate links and never affect ranking. Not affiliated with HMRC; not tax advice.