Hnry, Coconut, Starling, FreeAgent, Countingup or an accountant: which suits a sole-trader tradesperson?

On 17 October 2026, the six options ranged from free tools (Starling Accounting, or FreeAgent with some business bank accounts) to managed services such as Hnry, at 1% + VAT of income.

There are two very different kinds of help for Making Tax Digital (MTD). Software and bank accounts give you the tools, and you send the updates. A managed service or an accountant prepares and sends them for you. This page puts six options for sole-trader tradespeople side by side, with our own alongside. Our tax plans start once our HMRC registrations are complete. Until then you can join the waitlist, and no payment is taken.

The options side by side

Every price was checked on the provider's own website on 17 October 2026, as each provider lists it. Where a provider adds VAT, the including-VAT figure is ours, at 20%. The accountant row comes from a fee guide published by an accountancy firm, so it has a commercial interest.

Our founding offer for the first 500 trades clients is £5 a month for your first 3 months, then £35 a month. Cancel any time. We'll remind you before it changes.

What else differs

Countingup was not on GOV.UK's MTD software finder when checked on 17 October 2026, so ask it how quarterly updates for Income Tax would be sent.

Where each one is the better fit

• Hnry suits you if your income is under about £29,000, where its fee comes to less than our £350 yearly plan including VAT, or you want tax set aside every time you are paid. See the Hnry comparison.
• Coconut suits you if you are happy to do it yourself for a yearly fee. See the Coconut comparison.
• Starling Accounting suits you if you bank with Starling, or would, and want a free tool for your quarterly updates. See the Ember and Starling comparison.
• FreeAgent suits you if you already have a NatWest, RBS, Ulster Bank or Mettle business account, or you want full accounting software with invoicing. See the FreeAgent comparison.
• Countingup suits you if you want a new business account with bookkeeping, VAT returns and tax pots in one app. See the Countingup comparison.
• An accountant suits you if your affairs are complex or you want to meet someone. See the accountant comparison.
• Our service may suit you if you are a CIS subcontractor who wants to hand the work over at one fixed price including VAT, from the bank you already have, checking every figure before it goes to HMRC.

What this means for you

If your self-employed turnover and rent before expenses came to more than £30,000 in 2025-26, MTD starts for you on 6 April 2027. Your first quarterly update covers 6 April to 5 July 2027 and is due by 7 August 2027. Each missed deadline earns a penalty point, and 4 points means a £200 penalty.

A free tool costs your time every quarter. A managed service costs money but not the evenings. Whoever acts for you becomes your agent with HMRC, and only your main agent can send your tax return.

Steps to choose

1. Use the free MTD check to see whether and when MTD starts for you.
2. Decide whether you want to send the updates yourself or have someone send them for you.
3. Decide whether you are willing to change bank or move your income into a new account.
4. Work out each option's yearly cost on your own income, including VAT and after any free months end.
5. Ask how each one handles your CIS deductions and the tax return at the end of the year.
6. If you would rather hand the work over at a fixed price, see the trades plan and join the waitlist. No payment is taken.