From 6 April 2026, UK sole traders and landlords earning over £50,000 must use HMRC-recognised software to file quarterly Making Tax Digital updates. With the market full of options ranging from free to £65 per month, this guide cuts through the marketing to show you exactly what you get, what it costs, and which software is right for your situation.
Key context: HMRC lists over 20 MTD-compatible software providers, but only a handful offer a genuinely free tier for sole traders and landlords. VoxaMTD is the only HMRC-recognised platform offering unlimited quarterly submissions, open-banking bank feeds, and AI categorisation at no cost. See the full feature comparison.
The short answer
If you earn under £50,000 and are preparing ahead of the 2027 threshold drop, or if you want the most capable free option available, VoxaMTD is the only software that is genuinely free (not a trial, not tied to a bank account), includes AI-powered categorisation, open banking, voice AI tax advice, and direct HMRC production API integration.
If you earn over £50,000 and want the most widely used platform among UK accountants, Xero (from £16/month) or FreeAgent (free with NatWest, RBS, Mettle, or Tide) are the strongest established options.
MTD software comparison at a glance
| Software | Price | MTD submissions | Open banking | AI features | Landlord support | Free tier |
|---|---|---|---|---|---|---|
| VoxaMTD | Free | ✅ Production API | ✅ FCA-regulated | ✅ Alex AI voice | ✅ Section 24 calculator | ✅ Full free tier |
| FreeAgent | Free (with bank) | ✅ | ✅ | ❌ | Limited | Bank account required |
| QuickBooks | £10–47/mo | ✅ | ✅ | Basic | Limited (Plus plan) | ❌ |
| Xero | £16–59/mo | ✅ | ✅ | Basic | Via tracking categories | ❌ |
| Sage | £7–65/mo | ✅ | ✅ | Limited | Limited | ❌ |
| FreeAgent (paid) | £19/mo | ✅ | ✅ | ❌ | Limited | ❌ |
VoxaMTD — Free MTD software with AI
Price: Free core tier. Premium £15/month (30-day free trial). Professional £30/month. Professional + AI £40/month.VoxaMTD is the only free MTD software built specifically for the April 2026 mandate, with a direct connection to HMRC's production API, FCA-regulated open banking through Finexer (FRN 925695), and AI-powered transaction categorisation at 95% accuracy.
The standout feature is Alex AI Accountant — a conversational voice AI built on ElevenLabs that reads your live financial data and answers tax questions in plain English, 24/7, via voice, SMS, or WhatsApp. No other free MTD software comes close to this capability.
For landlords, VoxaMTD includes a dedicated Section 24 mortgage interest calculator, capital allowances tracking, and annual HMRC submission support — features that dedicated landlord software charges separately for.
Best for: UK sole traders and landlords who want a genuinely free, HMRC-recognised MTD solution with AI tax assistance. Particularly strong for users who want to avoid the accountant's fee or get professional-grade guidance without a £30/month subscription. Limitations: Newer platform launching fully in June 2026. No Sage or Xero data migration path yet.FreeAgent — Best established free option (with conditions)
Price: Free with NatWest, RBS, Mettle, or Tide business bank accounts. £19–33/month otherwise.FreeAgent has a loyal following among UK freelancers and contractors. It handles MTD submissions, Self Assessment filing, invoicing, time tracking, and project costing in one clean interface. HMRC recognises it for both MTD VAT and MTD Income Tax.
The catch is that 'free' comes with strings. You must hold a qualifying business bank account with one of four specific banks, and if you close that account, you lose free access. FreeAgent also has limited landlord functionality — it was designed primarily for service-based sole traders, not property income.
With NatWest, RBS, Mettle, or Tide, FreeAgent is a genuinely excellent deal and arguably the best value option for non-landlord sole traders who already bank with one of those providers.
Best for: Sole traders banking with NatWest, RBS, Mettle, or Tide who want a full-featured accounting solution at no cost. Limitations: Limited landlord support. Free access tied to specific bank relationships.QuickBooks — Best value paid option for sole traders
Price: Sole Trader plan £10/month. Simple Start £14/month. Plus £47/month.QuickBooks' Sole Trader plan at £10/month is the cheapest entry point from a major paid MTD provider. It includes Self Assessment filing, which Xero doesn't at its entry tier, and the mobile app is strong for expense tracking on the go.
For landlords who need class and location tracking to separate properties, however, you need the Plus plan at £47/month — a significant jump. QuickBooks is best suited to straightforward sole traders who want a clean, modern tool with Self Assessment included.
Intuit (QuickBooks' parent) has invested heavily in the UK market, and the MTD workflow is clean and well-documented. The mobile app is solid for receipt capture.
Best for: Budget-conscious sole traders who want a clean, modern tool with Self Assessment filing included. Not ideal for landlords due to the pricing jump required for property-specific features. Limitations: Landlord functionality requires expensive Plus plan. No AI tax assistant.Xero — Most accountant-compatible option
Price: Ignite £16/month. Grow £33/month. Comprehensive £47/month. Ultimate £59/month.Xero is the most widely adopted platform among UK accountants — if your accountant already uses it, staying in Xero's ecosystem makes sense even at the higher price point. The API is the most widely integrated by UK third-party developers, and Xero's bank feed automation is the best in class.
For landlords, Xero's tracking categories let you separate income and expenses by property without needing multiple accounts. It handles all UK property income as a single MTD income source, which aligns with HMRC's requirements.
The weakness: no AI features, no built-in Self Assessment filing at the entry tier, and the cost adds up quickly — £192/year at minimum for features a sole trader could get free elsewhere.
Best for: Sole traders working closely with a Xero-using accountant. Businesses expecting to grow, hire staff, or need wide third-party integrations. Landlords with multiple properties who need tracking category functionality. Limitations: Most expensive entry-level major option. No AI features. Self Assessment requires Grow plan.Sage — Best for existing Sage users and payroll needs
Price: Accounting Start £7/month. Accounting £15/month. Accounting Plus £30/month. Advanced £65/month.Sage offers the lowest published starting price among major providers at £7/month, and its unlimited payroll inclusion at every tier is a genuine advantage for sole traders with employees. If you're migrating from Sage 50 desktop, the data migration path is smoother than switching to a different vendor.
For new users, however, Sage's interface carries some complexity from its legacy heritage. It has lower accountant adoption rates than Xero or FreeAgent in the UK freelancer market.
Best for: Existing Sage 50 users transitioning to cloud accounting. Sole traders with employees who want payroll included at every price point. Limitations: Lower accountant adoption for UK freelancers. Interface more complex than competitors for simple sole trader use cases.Which MTD software should you choose?
You want free and full-featured: VoxaMTD — the only genuinely free MTD solution with AI tax advice, open banking, and a landlord dashboard. You bank with NatWest, RBS, Mettle or Tide: FreeAgent free tier — proven platform, excellent Self Assessment support. You want the cheapest paid option: QuickBooks Sole Trader at £10/month — best value for straightforward sole traders. Your accountant uses Xero: Xero Ignite at £16/month — the accountant compatibility is worth the premium. You have employees and need payroll: Sage at £7–15/month — unlimited payroll included at every tier.Frequently asked questions
What is the best free MTD software for UK sole traders? VoxaMTD is the only genuinely free MTD software that includes direct HMRC production API integration, FCA-regulated open banking, AI-powered categorisation, and a voice AI tax accountant. FreeAgent is free if you bank with NatWest, RBS, Mettle, or Tide. Is VoxaMTD better than QuickBooks for MTD? For sole traders primarily concerned with MTD compliance, VoxaMTD is free where QuickBooks costs £10/month minimum. VoxaMTD also includes AI-powered categorisation and a voice AI tax assistant — features not available in QuickBooks at any price point. QuickBooks has stronger Self Assessment integration and wider third-party app support. How does VoxaMTD compare to FreeAgent? Both offer MTD compliance, but VoxaMTD is free without requiring a specific bank account. VoxaMTD includes a dedicated landlord dashboard with Section 24 calculator and Alex AI voice accountant — capabilities FreeAgent does not offer. FreeAgent has more established Self Assessment integration and a larger user base. What is the cheapest MTD software in the UK? VoxaMTD is free for core MTD functionality. Among paid options, QuickBooks Sole Trader at £10/month is the cheapest entry point from a major established provider. Does VoxaMTD include Self Assessment? The Professional tier (£30/month) includes quarterly compliance review and Self Assessment support from a partner accountant. The free and Premium tiers cover MTD submissions but not full Self Assessment filing. Which MTD software has the best AI features? VoxaMTD. Alex AI Accountant is the only conversational voice AI in any MTD software — it reads your live financial data and answers tax questions in plain English, 24/7, via voice, SMS, or WhatsApp. No competitor currently offers anything comparable. Start VoxaMTD free — no card required →Related resources
Pricing correct as of April 2026. Always verify current pricing directly with each provider before signing up.