Sage

Sage and MTD ITSA — read carefully before purchasing

The GOV.UK situation with Sage is more nuanced than most comparison sites report, and getting it wrong could leave you non-compliant.

What IS on GOV.UK: A product called “Accounting from Sage” (free version) is listed on the GOV.UK software finder for sole trader income. Quarterly updates and tax return submission are both listed as ready now.

What is NOT confirmed: The paid Sage Accounting plans (Accounting Start, Accounting, Accounting Plus) are not separately listed on GOV.UK. It is unclear whether the GOV.UK recognition for “Accounting from Sage” extends to paid plans, or whether it applies only to the standalone free product.

Landlords: do not rely on Sage. The GOV.UK listing covers sole trader income only — not UK property income. If you have rental income, use FreeAgent, Zoho Books, or Xero, all of which are GOV.UK listed for both income types.

Our recommendation: If you are considering a paid Sage Accounting plan for MTD ITSA, contact Sage directly and ask which specific plan and product is covered by the GOV.UK recognition before purchasing.

Verified May 2026 · Source: GOV.UK

What Sage’s own marketing page says

Sage’s MTD marketing page makes several claims worth examining closely:

“With the right HMRC-approved accounting software in place… MTD-compliant software from Sage is easy to set up and use.”

Two problems here. First, HMRC does not approve software — the correct term is recognised, and the distinction matters. HMRC’s own guidance uses “recognised” throughout. “Approved” implies an endorsement HMRC explicitly does not give.

Second, the same page lists this as a feature:

“Create copy-and-paste totals to complete your Income Tax Self Assessment return.”

In our reading, this language suggests a manual workflow rather than direct API submission to HMRC — tools that submit directly typically do not require users to copy and paste figures. We are not in a position to confirm exactly what Sage’s current MTD ITSA capability is; what we can confirm is that Sage Accounting does not appear on the GOV.UK software finder as of May 2026, and we recommend verifying directly with Sage before purchasing.

We checked the GOV.UK software finder in May 2026. Sage Accounting does not appear. Sage 50cloud Accounts is in the “in development” section only. We report what GOV.UK says — not what vendor marketing pages claim.

Why Sage is still worth watching

Despite not currently appearing on the GOV.UK list, Sage remains one of the most capable UK accounting platforms for two specific groups:

CIS subcontractors: Sage Accounting Plus is the only mainstream tool with full end-to-end CIS management — subcontractor verification, automatic deduction calculation, and monthly CIS returns to HMRC. Once GOV.UK recognition is confirmed, it will be the strongest MTD ITSA option for construction workers.

Landlords: Sage has dedicated property income categories that match HMRC’s Schedule A reporting requirements. Multi-property portfolios can be tracked separately.

Choosing the right Sage plan

• Accounting Start (£15/month): Basic income and expense tracking, VAT returns
• Accounting (£30/month): Full accounting workflow for most sole traders and simple landlords
• Accounting Plus (£49/month): Required for CIS management — subcontractor verification, CIS deductions, monthly CIS returns