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.
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.
- Freetrue annual cost, VAT incl.
A genuinely free, HMRC-recognised MTD tool from Open Answers. Works as either spreadsheet bridging or simple in-app accounting, and covers both self-employment and property income at no cost.
- Freetrue annual cost, VAT incl.
Free, HMRC-recognised cloud bookkeeping. The free version covers MTD for Income Tax quarterly updates for sole traders and UK landlords, with an optional paid Pro tier for more automation.
- Freetrue annual cost, VAT incl.
Established UK cloud accounting with a genuinely free plan for sole traders and landlords — MTD for Income Tax quarterly updates and year-end filing at no cost, with low-priced paid tiers that add bank feeds and per-property tracking.
- Freetrue annual cost, VAT incl.
A free MTD for Income Tax tool for sole traders, built into SumUp's platform and powered by Sage. Turns the payments, invoicing and banking data you already capture in SumUp into MTD submissions at no extra cost.
- Freetrue annual cost, VAT incl.
Sage's genuinely free MTD for Income Tax app for sole traders and landlords (formerly Sage Individual). Digital records, bank feeds, quarterly updates and the final declaration at no cost — from one of the biggest names in UK accounting.
- Freetrue annual cost, VAT incl.
A genuinely free, HMRC-recognised tool from Cirrostratus (the VAT Direct platform): a simple cloud cashbook plus spreadsheet bridging that files MTD for Income Tax for sole traders and landlords — including foreign property — at no cost.
- Freetrue annual cost, VAT incl.
Free, browser-based bridging for sole traders and UK landlords. Your spreadsheet is read in your browser and only the summary figures go to HMRC — a privacy-first take on the cheapest way to comply.
- Freetrue annual cost, VAT incl.
Free bridging with unusually broad coverage: quarterly updates, year-end adjustments and the final declaration, for self-employment, UK and foreign property — including multiple businesses.
- Freetrue annual cost, VAT incl.
An automation-first tax app for freelancers and landlords with a genuinely free MTD plan — bank import, AI-assisted categorisation and pre-filled returns, covering self-employment, UK and foreign property, and CIS.
- Freetrue annual cost, VAT incl.
A flexible DIY filer covering unlimited self-employment businesses, UK and foreign properties — key figures in yourself, bridge from a spreadsheet or connect your bank. Files right through to the final declaration.
- Freetrue annual cost, VAT incl.
Landlord property-management software with a genuinely free single-property plan that includes MTD filing. Quarterly updates are reviewed and sent from inside the platform, with email reminders each quarter.
- 13.123 Sheetsfrom £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.
- from £25/yrtrue annual cost, VAT incl.
Landlord-focused, with a pay-per-submission MTD Go tier for small portfolios and a Pro plan with submissions included. Self-employment not covered.
- 15.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.
- 16.QuickFilefrom £72/yrtrue annual cost, VAT incl.
Long-established UK cloud bookkeeping that's free for smaller accounts. Filing MTD for Income Tax needs its Power User Subscription, which covers both self-employment and property income.
- 17.MTDsortedfrom £72/yrtrue annual cost, VAT incl.
Simple UK accounting best known for free MTD VAT filing. Income Tax quarterly submissions sit on the cheap paid plans, with bank feeds, invoicing and both in-app records and spreadsheet bridging.
- 18.Provestorfrom £99/yrtrue annual cost, VAT incl.
Landlord-specialist MTD software with tax smarts built in — AI categorisation, mortgage interest and Section 24 handling, joint-ownership splits — filing quarterly updates and the final declaration. Accountant-backed tiers if you want returns checked.
- 19.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.
- 20.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.
- 21.Taxdfrom £120/yrtrue annual cost, VAT incl.
An HMRC-recognised MTD for Income Tax tool from Taxd that files to HMRC from the records you keep (bridging), covering self-employment and UK property. The MTD plan handles the quarterly updates with specialist support; Taxd also sells guided one-off Self Assessment returns separately.
- 22.QuickBooksfrom £129.60/yrtrue annual cost, VAT incl.
Widely used cloud accounting. The Sole Trader Plus plan covers self-employment and a single rental property if you're not VAT-registered; Simple Start adds VAT.
- 23.Coconutfrom £129.99/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.
- 24.untiedfrom £129.99/yrtrue annual cost, VAT incl.
The UK's original MTD-recognised personal tax app: a mobile-first way for the self-employed and landlords to tag income and file. The Pro plan adds full Making Tax Digital for Income Tax.
- 25.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.
- 26.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.
- 27.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 £287.57/yrtrue annual cost, VAT incl.
A full property-management platform for landlords, now HMRC-recognised for MTD for Income Tax. Goes beyond filing into rent tracking, tenant management and per-property reporting — priced by the size of your portfolio.
- from £288/yrtrue annual cost, VAT incl.
Established accounting software with strong accountant support and phone help. Pricier than most here, no surprises.
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.