What is Making Tax Digital (MTD)?

Making Tax Digital (MTD) is a UK government initiative requiring self-employed individuals and landlords earning over £50,000 to keep digital records and submit quarterly updates to HMRC using compatible software. The deadline for MTD for Income Tax Self Assessment (MTD ITSA) compliance is April 6th, 2026. After this date, affected taxpayers must use MTD-compliant software like VoxaMTD for their tax submissions.

Do I need MTD software by April 2026?

Yes, if you are a sole trader or landlord with annual income over £50,000, you must use MTD-compliant software for quarterly submissions starting April 6th, 2026. From April 2027, the threshold reduces to £30,000. HMRC penalties for non-compliance start at £200 per missed quarterly submission. VoxaMTD offers free MTD compliance to help you prepare before the deadline.

Is VoxaMTD really free?

Yes! VoxaMTD's core MTD compliance features are completely free: HMRC quarterly submissions, Open Banking bank feeds, AI-powered transaction categorization, real-time tax calculations, and email support. No credit card required. You only pay if you need premium add-ons like mortgage interest calculators (£20/mo) or GPS mileage tracking (£15/mo).

How does VoxaMTD compare to Sage and QuickBooks for MTD?

Unlike Sage (from £12/month) and QuickBooks (from £10/month), VoxaMTD offers core MTD compliance features completely free. This includes HMRC submissions, bank feeds, and AI categorization at no cost. VoxaMTD is purpose-built for MTD compliance rather than being a full accounting suite, making it simpler and more focused for sole traders who just need to meet the April 2026 deadline.

What happens if I do nothing before April 2026?

If you earn £50,000+ as a sole trader or landlord and don't use MTD-compliant software by April 6th, 2026, you'll face HMRC penalties. Penalties start at £200 per missed quarterly submission and increase with repeated failures. You'll also need to maintain digital records, which VoxaMTD handles automatically through Open Banking integration.

Is VoxaMTD HMRC recognized software?

Yes, VoxaMTD is built to meet HMRC's MTD for Income Tax requirements. We use secure HMRC OAuth authentication (we never see your Government Gateway password), include all required fraud prevention headers, and submit directly to HMRC's MTD API. Our Open Banking connections are FCA-authorized for secure bank data access.

Can I use VoxaMTD if I'm both self-employed and a landlord?

Yes! The free tier covers both sole trader and landlord income sources. VoxaMTD categorizes all your business transactions and calculates combined tax liability. If you want premium features for both (mortgage calculators AND mileage tracking), our Professional plan at £40/month includes everything with priority support.

How accurate is the AI transaction categorization?

VoxaMTD's AI achieves 95% accuracy in categorizing transactions based on testing across 10,000+ transactions. The AI learns from HMRC's allowable expense categories and continuously improves. You always review and confirm categories before HMRC submission, ensuring you stay in control of your tax data.

VoxaMTD vs QuickBooks vs FreeAgent vs Xero: Which MTD Software is Right for You?

864,000 UK sole traders and landlords need MTD-compliant software from April 2026. With Xero, QuickBooks, FreeAgent, and VoxaMTD all positioned as solutions, this guide gives you a direct, honest comparison — pricing, features, limitations, and the right choice for each type of user.

Key context: Xero MTD starts at £16/month, QuickBooks at £12/month, FreeAgent at £14.50/month — VoxaMTD is free for core MTD compliance including quarterly HMRC submissions, open banking, and AI categorisation. All four are HMRC-recognised. See the full feature-by-feature comparison table.

We're VoxaMTD, so we have a stake in this comparison. We've tried to be fair, and where competitors genuinely do something better, we've said so.

The one-line summary

VoxaMTD: Best for sole traders and landlords who want free, AI-powered MTD compliance with a voice tax assistant
FreeAgent: Best for sole traders who bank with NatWest, RBS, Mettle, or Tide and want an established, well-supported platform
QuickBooks: Best for sole traders who want a polished paid option with Self Assessment included and don't have complex needs
Xero: Best for businesses working closely with an accountant, or those expecting significant growth

Pricing comparison (April 2026)

VoxaMTD	FreeAgent	QuickBooks	Xero
Free tier	✅ Full MTD	✅ With qualifying bank	❌	❌
Entry paid tier	£15/mo	£19/mo	£10/mo	£16/mo
Self Assessment	Professional £30/mo	Included	Included	Grow plan £33/mo
Trial	30 days free	Free trial available	30 days	30 days
Annual cost (entry paid)	£0–180	£0–228	£120	£192

Feature comparison

Feature	VoxaMTD	FreeAgent	QuickBooks	Xero
MTD quarterly submissions	✅	✅	✅	✅
Direct HMRC production API	✅	✅	✅	✅
Open banking bank feeds	✅ FCA-regulated	✅	✅	✅
AI transaction categorisation	✅ 95% accuracy	Limited	Limited	Limited
Voice AI tax assistant	✅ Alex AI	❌	❌	❌
WhatsApp/SMS tax advice	✅	❌	❌	❌
Human accountant access	✅ Professional tier	Via partner network	Via accountant	Via accountant
Landlord dashboard	✅ Dedicated	Limited	Limited (Plus)	Via tracking
Section 24 calculator	✅	❌	❌	❌
Mileage tracker	✅ Premium	✅	✅	Via add-on
Receipt scanner	✅ Claude Vision OCR	✅	✅	✅
iOS app	✅	✅	✅	✅
Self Assessment	Professional £30/mo	✅	✅ Sole Trader	Grow £33/mo
Invoicing	Limited	✅	✅	✅
Payroll	❌	Via add-on	Add-on	Via add-on
Accountant partner portal	✅ Revenue share	✅	✅	✅

Head-to-head: VoxaMTD vs QuickBooks

Price: VoxaMTD wins outright. Free vs £10/month minimum. MTD submissions: Both connect directly to HMRC's production API. Both handle quarterly updates and the final declaration. AI features: VoxaMTD wins significantly. QuickBooks offers basic smart categorisation suggestions. VoxaMTD's Alex AI reads your live financial data and answers specific questions about your tax position — a categorically different capability. Self Assessment: QuickBooks wins at the entry tier. The Sole Trader plan includes Self Assessment filing. VoxaMTD requires the Professional tier (£30/month) for human-assisted Self Assessment, though Alex AI can help you understand your position. Mobile experience: QuickBooks has a more mature mobile app with stronger expense capture features. VoxaMTD's iOS app has full feature parity with the web app. Accountant ecosystem: QuickBooks has wider accountant adoption than VoxaMTD currently. If your accountant insists on QuickBooks, that relationship is worth the £120/year. Verdict: If you're primarily concerned with MTD compliance and tax guidance, VoxaMTD is better and free. If you need Self Assessment included and want a more established platform, QuickBooks at £10/month is the best-value paid option.

Head-to-head: VoxaMTD vs FreeAgent

Price: Both can be free. VoxaMTD is free regardless of your bank. FreeAgent is free only with NatWest, RBS, Mettle, or Tide. MTD submissions: Both handle quarterly updates directly to HMRC. Landlord support: VoxaMTD wins clearly. VoxaMTD has a dedicated landlord dashboard with Section 24 calculator. FreeAgent was designed for service-based sole traders and has limited property income features. AI features: VoxaMTD wins. FreeAgent has no AI tax assistant. VoxaMTD's Alex AI provides personalised voice tax advice based on your actual data. Self Assessment: FreeAgent wins. Self Assessment is included at all tiers. VoxaMTD requires the Professional tier. Maturity: FreeAgent wins. It's been used by hundreds of thousands of UK freelancers since 2007. VoxaMTD launched publicly in 2026. FreeAgent has a larger support community, more integrations, and a longer track record. Verdict: If you bank with NatWest/RBS/Mettle/Tide and don't need landlord features, FreeAgent free is an excellent choice. If you're a landlord, or want AI tax assistance, or don't want to be tied to a specific bank, VoxaMTD is the stronger option.

Head-to-head: VoxaMTD vs Xero

Price: VoxaMTD wins. Free vs £16/month minimum (£192/year). Accountant compatibility: Xero wins by a significant margin. It's the most widely used accounting platform among UK accountants. If your accountant uses Xero and you switch to a different platform, you'll pay in slower support and less efficient collaboration. This accountant relationship is often worth more than the price difference. MTD submissions: Both handle quarterly updates and final declarations. Landlord features: VoxaMTD wins for dedicated landlord functionality. Xero handles property income well using tracking categories, but there's no Section 24 calculator or dedicated landlord dashboard. AI features: VoxaMTD wins. Xero has no conversational AI tax assistant. VoxaMTD's Alex AI is unique in the market. Integrations: Xero wins decisively. Over 1,000 third-party integrations in the Xero App Store. VoxaMTD integrates with Stripe, Finexer, and core HMRC APIs but has a much smaller ecosystem. Verdict: If your accountant uses Xero or you're a growing business, Xero's ecosystem justifies the cost. If you're a sole trader or landlord focused on MTD compliance and want AI-powered guidance, VoxaMTD delivers more for nothing.

The right choice by user type

Sole trader, under £50,000 income, preparing for 2027 threshold: VoxaMTD free — get set up before the deadline drop without committing to a monthly fee. Sole trader, over £50,000, banks with NatWest/RBS/Mettle/Tide: FreeAgent free — proven platform, Self Assessment included, excellent for service-based sole traders. Sole trader, over £50,000, any bank, wants AI tax advice: VoxaMTD free + 30-day Premium trial — the only platform with a conversational AI that reads your actual data. Landlord: VoxaMTD — the only MTD software with a dedicated landlord dashboard, Section 24 calculator, and property-specific AI tax advice. Business with an accountant who uses Xero: Xero — the accountant relationship is worth £192/year. Business needing payroll at lowest cost: Sage (from £7/month with unlimited payroll at every tier).

Frequently asked questions

Is VoxaMTD better than QuickBooks for MTD? For pure MTD compliance and AI tax guidance, yes — and VoxaMTD is free. QuickBooks is better if you need Self Assessment filing at the entry tier or want a more established platform with wider accountant support. How does VoxaMTD compare to FreeAgent? VoxaMTD is the better choice for landlords and for users who want AI tax advice. FreeAgent is the better choice for sole traders who already bank with NatWest/RBS/Mettle/Tide and want an established Self Assessment platform. Is there a free alternative to Sage for MTD? Yes — VoxaMTD is free for core MTD functionality. Sage's cheapest plan is £7/month (£84/year). VoxaMTD includes AI-powered features that Sage doesn't offer at any price point. Does VoxaMTD work for landlords? Yes. VoxaMTD has a dedicated landlord dashboard with Section 24 mortgage interest calculator, capital allowances tracking, property income tracking by property, and annual HMRC submission support. Start VoxaMTD free — compare for yourself, no card required →

Related resources

Prices correct as of April 2026. All platforms offer free trials — we recommend trying before committing to any paid subscription.