Top 5 MTD Software Picks

Why You Need MTD-Compatible Software

With Making Tax Digital for Income Tax (MTD ITSA) rolling out from April 2026, it’s essential for landlords and sole traders to move to digital record-keeping and submit quarterly tax updates using HMRC-recognised software.

Whether you're self-employed, a landlord, or both, the right software will make compliance stress-free and give you better visibility over your income and expenses.

Our Top 5 MTD Software Picks for 2025

Here are the five best MTD software options based on ease of use, features, MTD compatibility, pricing, and support for UK taxpayers.

1. FreeAgent – Best for Sole Traders and Landlords with a Side Hustle

Overview: FreeAgent is one of the most popular choices for freelancers and sole traders. It's HMRC-recognised for MTD ITSA and is known for its clean interface, great automation tools, and easy submission process.

Best for: Sole traders, freelancers, landlords with mixed income

Key Features:

• MTD ITSA-ready

• Bank feeds and smart expense tracking

• Free with a NatWest, RBS, or Mettle account

• Mobile app available ✅

Price: From £14.50/month (often free with select bank accounts)

2. Hammock – Best for Landlords

Overview: Hammock is designed specifically for UK landlords, offering features like rent tracking, expense categorisation, and property-by-property insights.

Best for: Landlords with one or more rental properties

Key Features:

• Built for rental income tracking

• Syncs with your bank account

• MTD for Income Tax compliant

• Real-time profit/loss tracking

• Mobile app available ✅

Price: From £5/month

3. QuickBooks Online – Best for Beginners and Small Business Owners

Overview: QuickBooks is a well-known, easy-to-use accounting platform that supports both VAT and MTD for Income Tax. Ideal for those who want a plug-and-play experience.

Best for: Small businesses, first-time users

Key Features:

• HMRC-recognised for MTD ITSA

• Track income, expenses, invoices

• Automatic mileage tracking

• Mobile app available ✅

Price: From £12/month (with regular discounts)

4. Xero – Best for Growing Businesses and Property Portfolios

Overview: Xero is a powerful cloud-based solution trusted by accountants and businesses alike. It’s flexible and highly customisable — perfect for users managing multiple income streams.

Best for: Business owners, portfolio landlords, and VAT-registered businesses

Key Features:

• Full MTD ITSA support

• Inventory and payroll features

• Bank reconciliation

• Strong reporting tools

• Mobile app available ✅

Price: From £15/month

5. Untied – Best Budget-Friendly Mobile App

Overview: Untied is a simple mobile-first tax app for individuals who want to manage their MTD obligations with minimal fuss. It’s an excellent entry-level option.

Best for: Budget-conscious sole traders and DIY landlords

Key Features:

• Fully MTD for Income Tax compatible

• Submit quarterly updates from your phone

• Easy-to-use interface

• Mobile app available ✅

Price: Free plan available; Pro from £9.99/month

Feature Comparison Table

Software	MTD ITSA Ready	Mobile App	Landlord Tools	Bank Sync	Starting Price
FreeAgent	✅	✅	⚠️	✅	£14.50/mo
Hammock	✅	✅	✅	✅	£5/mo
QuickBooks	✅	✅	⚠️	✅	£12/mo
Xero	✅	✅	⚠️	✅	£15/mo
Untied	✅	✅	⚠️	✅	£0–£9.99/mo

How to Choose the Right MTD Software

When deciding which MTD software is right for you, consider:

• Do you need property-specific features?

• Will you be managing both self-employed and rental income?

• Do you want desktop access, mobile-only, or both?

• Do you need to share access with an accountant?

• Are you eligible for a free plan via your bank?

Final Thoughts

The best MTD software will depend on your income sources, preferences, and budget — but all of the options listed above are fully HMRC-compliant and ready for MTD ITSA.

Don’t leave it until 2026.Start using your MTD software now to get familiar and stay ahead of the changes.