MTD compatible software: what HMRC's official list shows
Last updated: · Prices checked on vendor sites on 31 October 2026
MTD compatible software is any product listed on HMRC's software finder for Making Tax Digital for Income Tax (MTD for ITSA). On 31 October 2026 the finder listed 103 products for individuals. We compared nine popular ones; free options included My Tax Digital, Sage Sole Trader Free and FreeAgent for some bank customers.
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| Software | HMRC finder listing | Type (HMRC finder) | Sole trader | UK property | Foreign property | MTD for VAT | HMRC Assist | Price (vendor site) | Visit |
|---|---|---|---|---|---|---|---|---|---|
| FreeAgent | FreeAgent View on HMRC finder | Creates records | Yes | Yes | No (Not included)Source: HMRC finder | Yes | No | Sole trader: £19/month · £190/yearexcl. 20% VAT · 50% off first 6 months (£9.50/month) or first year (£95)Landlord: £10/month · £100/yearexcl. 20% VAT · 50% off first 6 months (£5/month) or first year (£50)Price source: www.freeagent.com, checked 31 Oct 2026 | Visit |
| Xero | Xero View on HMRC finder | Creates records | Yes | Yes | Yes (Ready now)Source: HMRC finder | Yes | No | Simple (non-VAT registered): £7/month · £84/yearexcl. VAT · First 6 months £0.70/month (90% off), then £7/monthIgnite (includes VAT returns): £18/month · £216/yearexcl. VAT · First 6 months £1.80/month (90% off), then £18/monthPrice source: www.xero.com, checked 31 Oct 2026 | Visit |
| QuickBooks | QuickBooks (Intuit) View on HMRC finder | Creates records | Yes | Yes | No (Not included)Source: HMRC finder | Yes | Yes | Sole Trader Plus: Current price is on the QuickBooks pricing pageSimple Start (adds VAT submission): Current price is on the QuickBooks pricing pageEssentials: Current price is on the QuickBooks pricing pagePlus: Current price is on the QuickBooks pricing pageSole Trader Plus, Simple Start, Essentials and Plus are each described by QuickBooks as ready for MTD for ITSA; 30-day free trial availablePrice source: quickbooks.intuit.com, checked 31 Oct 2026 | Visit |
| Sage Sole Trader | Sage Sole Trader & Landlord / Sage Sole Trader & Landlord Free View on HMRC finder | Creates records | Yes | Yes | No (Not included)Source: HMRC finder | No | No | Sole Trader Free: Free (£0)Sole Trader: £7/month · £84/yearexcl. 20% VAT · 90% off first 6 monthsPrice source: www.sage.com, checked 31 Oct 2026 | Visit |
| Coconut | Coconut View on HMRC finder | Records + bridging | Yes | Yes | Yes (Ready now)Source: HMRC finder | Yes | Yes | MTD filing: £12.99/month · £129.99/year14-day free trialMTD Bridging (spreadsheets): £49.99/yearAnnual onlyPrice source: www.getcoconut.com, checked 31 Oct 2026 | Visit |
| Hammock | Hammock for landlords View on HMRC finder | Records + bridging | No | Yes | Yes (Ready now)Source: HMRC finder | No | No | Basic, 1–3 properties: £8/month · £76.80/year+VAT · Annual billing saves 20%Standard, 4–10 properties: £15/month · £144/year+VAT · Annual = 12 × monthly less 20%Plus, 11–20 properties: £25/month · £240/year+VAT · Annual = 12 × monthly less 20%Beyond, 21+ properties: From £31.50/mo ex VAT (£302.40/yr), confirmed by property countPrice source: www.usehammock.com, checked 31 Oct 2026 | Visit |
| 123 Sheets | 123 Sheets View on HMRC finder | Records + bridging | Yes | Yes | Yes (Ready now)Source: HMRC finder | Yes | No | £19.75/yearex. VAT · First-year price, including the 50% discount on the vendor page. No later-year price is published there.Price source: 123sheets.com, checked 31 Oct 2026 | Visit |
| VitalTax | VitalTax View on HMRC finder | Bridging only | Yes | Yes | Yes (Ready now)Source: HMRC finder | Yes | No | £30/year+ VAT · First submission freePrice source: www.vitaltax.co.uk, checked 31 Oct 2026 | Visit |
| My Tax Digital | My Tax Digital (Free) View on HMRC finder | Records + bridging | Yes | Yes | Yes (Ready now)Source: HMRC finder | Yes | Yes | Free (£0)Price source: mytaxdigital.co.uk, checked 31 Oct 2026 | Visit |
Income-source and VAT statuses are copied from each product's HMRC finder page, checked 31 October 2026.The Foreign property column links to that page. Prices are list prices from each vendor pricing page on the same date, before introductory discounts. A pricing-page link is the source for the price only.
We do not show star ratings: we have not tested these products ourselves and will not borrow scores from elsewhere.
The short answer
- Cheapest: My Tax Digital. Free for quarterly updates and the tax return.Visit My Tax Digital
- Best for landlords: Xero. HMRC’s finder lists UK and foreign property as Ready now. Simple lists at £7 a month excl. VAT.Visit Xero
- Best for sole traders: FreeAgent. VAT, payroll and PAYE income ready now on one £19 plan.Visit FreeAgent
Sole traders
Every product in the table except Hammock covers self-employment income. If you have a job as well, check that "Employment (PAYE)" is Ready now: on 31 October 2026 that was true for FreeAgent, QuickBooks, 123 Sheets and My Tax Digital. The FreeAgent vs Xero comparison goes deeper.
Landlords
All nine cover UK property on HMRC's finder. Foreign property is where they differ: the finder lists it as Ready now for Xero, Coconut, Hammock, 123 Sheets, VitalTax and My Tax Digital, and Not included for FreeAgent, QuickBooks and Sage. Those statuses link to each HMRC product page in the table. Landlord specialist Hammock prices by portfolio size: £8 a month for 1–3 properties, £15 for 4–10 and £25 for 11–20 (all ex VAT; annual billing saves 20%; 21+ properties from £31.50, confirmed by property count). Thresholds and joint ownership are onMaking Tax Digital for landlords. Six options with prices are onMTD software for landlords.
VAT-registered businesses
GOV.UK advises checking whether your current VAT software also works with MTD for ITSA. Sage Sole Trader and Hammock are not listed for MTD for VAT, and Xero's Simple plan is for non-VAT registered businesses only.
How we built this list
We ran HMRC's software finder for an individual (not an agent) on 31 October 2026, opened each product's detail page, and copied the feature statuses. Prices come from each vendor's own pricing page on the same day. Where that page did not show a number we could confirm, the table names the plan and links to the pricing page instead of printing a figure. Read the MTD for ITSA guide to check whether you need software yet, or see bridging software if you want to keep a spreadsheet.
Sources (GOV.UK)
- Find software that works with Making Tax Digital for Income TaxSource: GOV.UK, published , updated
- Choose the right software for Making Tax Digital for Income TaxSource: GOV.UK, published , updated
- Find software that's compatible with Making Tax Digital for VATSource: GOV.UK, published , updated
- Find out if and when you need to use Making Tax Digital for Income TaxSource: GOV.UK, published , updated
- HMRC software finder: Find software that works with Making Tax Digital for Income TaxSource: HMRC service on GOV.UK, checked
Frequently asked questions
How do I check if software is MTD compatible?
Use HMRC's software finder on GOV.UK. It lists every product that has passed HMRC's recognition process and shows the income sources and submissions each one supports. On 31 October 2026 it returned 103 products for individuals and agents.
Is there free MTD compatible software?
Yes. HMRC's finder has a free version filter. Free options included My Tax Digital, Sage Sole Trader Free and FreeAgent for NatWest, RBS, Ulster Bank and Mettle customers.
Is my VAT software also compatible with MTD for ITSA?
Not automatically. GOV.UK advises VAT-registered businesses to check whether their VAT software also works with MTD for ITSA, or that the new software can meet their VAT needs.
Does MTD compatible mean HMRC approved or recommended?
It means the product passed HMRC's recognition process. HMRC states it does not recommend any product or software provider.