Disclosure: This page contains affiliate links.
The best HMRC-recognised MTD ITSA software (2026)
All software on this page is verified against the GOV.UK software finder — the only authoritative source for MTD ITSA recognition. We do not rely on software vendors’ own marketing claims.
Best for most sole traders: FreeAgent or Zoho Books
For straightforward self-employment income, FreeAgent and Zoho Books deliver full MTD ITSA compliance at the lowest cost.
FreeAgent: Free with NatWest, RBS, or Ulster Bank business account. Purpose-built for UK sole traders with the best tax deadline timeline of any tool. £19/month standalone.
Zoho Books: Free for up to 1,000 invoices/year. Standard plan at £12/month is the cheapest paid option with full MTD ITSA capability. Strong mobile app and clean interface.
Best for CIS subcontractors: Sage
Sage Accounting Plus (£49/month) is the only mainstream platform with end-to-end CIS management: subcontractor verification, monthly CIS returns, and deduction tracking — all alongside full MTD ITSA quarterly submissions.
Best for landlords: Sage or QuickFile
For landlords who want dedicated property income categories and MTD ITSA submissions:
- Sage (£30–49/month) for landlords who also need full accounting depth.
- QuickFile (free) for landlords who want zero-cost MTD ITSA with dedicated property income support. Well-regarded in UK landlord communities.
Best free option: QuickFile
QuickFile is genuinely free for most sole traders (up to 1,000 nominal ledger entries/year) with full MTD ITSA capability. There is no upsell pressure — the product is free because the developer funds it through a small large-business tier.
Best for switching from spreadsheets: Untied or Coconut
Untied is purpose-built for UK self-assessment, with the simplest MTD ITSA setup of any tool. Premium at £14.99/month.
Coconut combines a business bank account with MTD ITSA accounting — automatic categorisation reduces manual work significantly. Premium at £7.99/month.
Summary table
| Tool | Free? | From | MTD ITSA | Best for |
|---|---|---|---|---|
| Xero | No | £16/mo | ✓ All phases | Existing users, complex businesses |
| QuickBooks | No | £14/mo | ✓ All phases | Existing users, ease of use |
| Sage | No | £15/mo | ✓ All phases | CIS, landlords |
| FreeAgent | NatWest only | £19/mo | ✓ All phases | Sole traders, UK-native |
| Zoho Books | Yes (1k inv/yr) | £12/mo | ✓ All phases | Best value paid |
| FreshBooks | No | £15/mo | ✓ All phases | Service businesses |
| Untied | Basic only | £14.99/mo | ✓ All phases | Simplest setup |
| Coconut | Limited | £7.99/mo | ✓ All phases | Bank + accounting combo |
| Crunch | Yes (software) | £29.50/mo | ✓ All phases | Managed accountancy |
| QuickFile | Yes (1k entries/yr) | £45/yr | ✓ All phases | Free, landlords |
MTD ITSA status verified at GOV.UK software finder, April 2026. Always re-verify before committing to a platform.
Frequently asked questions
Which MTD ITSA software is best for sole traders?
FreeAgent (free with NatWest, or £19/month) and Zoho Books (free plan or £12/month) are the best value options for straightforward sole-trader income. Both are HMRC-recognised for all three phases.
What is the cheapest HMRC-recognised MTD ITSA software?
QuickFile and Zoho Books both offer free plans with full MTD ITSA submission capability. QuickFile is free up to 1,000 nominal entries/year; Zoho Books is free up to 1,000 invoices/year.
Is Xero good for MTD ITSA?
Yes — Xero is HMRC-recognised for all three MTD ITSA phases. It is best suited to users already on the platform, or those with complex finances who need strong reporting. It is expensive for simple sole-trader use cases.
Which software is best for CIS subcontractors and MTD ITSA?
Sage Accounting Plus (£49/month) is the only mainstream tool with end-to-end CIS management alongside MTD ITSA submissions. This includes subcontractor verification, CIS return filing, and deduction tracking.
Not sure which MTD ITSA software is right for you?
Answer four questions to get a personalised recommendation.
What best describes you?
What is your approximate annual income from self-employment or property?
What's your monthly budget for accounting software?
Are you currently using any accounting software?
Our recommendation
Read the full review →