Best MTD software for sole traders
Self-employed and over the Making Tax Digital threshold? This list ranks every HMRC-recognised tool that covers self-employment income by its true annual cost (VAT included) — the cheapest plan that actually fits, not the vendor's 'from' headline. It's generated by the same engine as our finder, so it tracks price changes.
If you keep no records today, a guided app is the lower-effort path; if you live in a spreadsheet, a bridging tool that files straight from it is usually cheapest. The best-fit flag highlights the strongest all-round option.
- 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.
- £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.
- £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.
- 4.VitalTax£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.
- £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.
- 6.Coconut£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.
- 7.Xero£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.
- 8.TaxCalc£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.
- 9.APARI£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.
- 10.QuickBooks£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.
- 11.FreshBooks£216/yrtrue annual cost, VAT incl.
Invoicing-first accounting aimed at service freelancers. Great if you bill clients; not built for landlords.
- £216/yrtrue annual cost, VAT incl.
Established accounting software with strong accountant support and phone help. Mid-priced, no surprises.
- £273.60/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.
Ruled out, and why
- Hammock — Doesn't support self-employment income.
- Landlord Studio — Doesn't support self-employment income.
Frequently asked questions
- Which MTD software is best for sole traders?
- The table above ranks every tool that covers self-employment by true annual cost. The cheapest that fits is first; the best-fit flag marks the strongest all-rounder for a typical sole trader.
- What's the cheapest MTD software for the self-employed?
- The top of the table. Bridging tools are usually cheapest if you keep a spreadsheet, and a free tier or free-with-bank deal can be £0 — see our free MTD software list.
- Do I need full accounting software?
- Not necessarily. If you just need to file, a bridging tool or guided filer is cheaper than full accounting. The list above includes all types so you can weigh cost against features.
- Can my accountant access these?
- Most support agent access so your accountant can log in; a couple don't. Each product page notes whether agent access is available.
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.