Voice and visuals made with automated software, including AI.
There is no single best product, and HMRC does not recommend any. In October 2026 the GOV.UK finder listed many options for sole traders. Choose by how you keep records, what you will pay and whether you have CIS deductions.
Making Tax Digital for Income Tax (MTD) means keeping digital records, sending HMRC an update every quarter and filing your tax return through software. If your turnover before costs was over £30,000 on your 2025-26 return, you start on 6 April 2027. GOV.UK describes two kinds of software: software that creates your digital records, often from a bank feed, and bridging software that sends figures from a spreadsheet you already keep.
Want your books sorted?
We sort your books and prepare your quarterly figures. You send them to HMRC yourself with free Making Tax Digital software.
Founding offer on Trades Tax (coming later), first 500 trades clients: £5 a month for your first 3 months, then £35 a month. Cancel any time. We’ll remind you before it changes. Prices include VAT. No payment is taken while you wait.
Are you ready for Making Tax Digital? Check your start date and what to sort first. It’s free and takes a minute.
Sole trader software on the GOV.UK finder
Each product below had a GOV.UK software finder entry covering self-employment income when checked on 15 October 2026. The CIS column shows what the finder said about Construction Industry Scheme deductions on the tax return. Prices are the entry plan with MTD filing, as listed on each product's own site in October 2026. They change often, and several are first-year offers.
| Product (site) | Type | CIS on the tax return | Price listed in October 2026 |
|---|---|---|---|
| FreeAgent (freeagent.com) | Records | Ready now | £19 a month plus VAT; free with some NatWest, RBS, Ulster Bank and Mettle accounts |
| QuickBooks (quickbooks.intuit.com) | Records | Ready now | From £10 a month plus VAT |
| untied (untied.io) | Records and bridging | Ready now | £129.99 a year including VAT |
| 123 Sheets (123sheets.com) | Bridging | Ready now | £19.75 a year plus VAT, with a first-year discount |
| Xero (xero.com) | Records | In development | £18 a month plus VAT, with an introductory discount |
| Coconut (getcoconut.com) | Records and bridging | In development | £129.99 a year on annual billing; VAT not stated; a free version is also listed |
| Crunch (crunch.co.uk) | Records | In development | £10 a month plus VAT |
| Sage Sole Trader & Landlord (sage.com) | Records | In development | Free version listed; the paid price could not be checked on Sage's site |
| Pandle (pandle.com) | Records and bridging | Not shown | Free without bank feeds; £5 a month plus VAT with them |
| Clear Books (clearbooks.co.uk) | Records | Not shown | Free without bank feeds; £5 a month plus VAT with them |
Starling's free accounting tool is also on the finder for Starling account holders, but in October 2026 its own site said the tax return part was still coming soon.
The table is a shortlist, not the whole finder. Our Making Tax Digital software census counts every product listed on it, including how many say they are ready now for sole traders who are also on CIS.
What this means for you
Start with how you keep records now. If you already keep a tidy spreadsheet, bridging software is usually the cheapest route: you carry on as you are and the software sends the totals. If you would rather your bank transactions came in and were sorted for you, choose record-keeping software with a bank feed.
Then check the things that matter most to tradespeople:
- CIS deductions. GOV.UK says HMRC adds your CIS subcontractor deductions to your MTD tax return, and you must check them before you submit. A product marked ready for CIS will show them properly.
- Simpler records under £90,000. If your turnover is under £90,000, GOV.UK lets sole traders record each item simply as income or expense, so a basic product may be enough.
- The tax return. Some products send quarterly updates but not yet the tax return. You can use two products that work together, but one is simpler.
- VAT. If you are VAT-registered, check whether your VAT software also covers MTD for Income Tax.
- Help from someone else. If a bookkeeper or agent will send your updates, check the product lets them in, and whether it allows more than one agent.
Finally, compare the price you will actually pay. Several list prices exclude VAT, and introductory discounts end after a few months or a year.
Steps to choose your MTD software
- Use the free MTD check to confirm your start date and qualifying income.
- Open the GOV.UK software finder and answer its questions about your income, including any rental income.
- Shortlist two or three products that cover every income source you have. If you are on CIS, favour ones the finder shows as ready.
- Check each product's own site for the current price, including VAT, and the price after any first-year offer.
- Use a free trial and put in one month of real jobs, costs and CIS statements.
- Sign up for MTD with HMRC. You must be registered for Self Assessment and have sent a tax return in the last 2 years.
- Connect the software before your first update. For a 6 April 2027 start, it covers 6 April to 5 July 2027 and is due by 7 August 2027.
If you would rather not do it yourself
Software is not the only route. A bookkeeper or agent can send your updates and tax return for you, using MTD software of their own. If you go that way, ask which product they use and whether you can see your records in it. The trades section has more guides on MTD, CIS and running the books for a trade.
Hold your place on the trades waitlist
We’ll email you when Trades Tax opens, with the founding offer while places last. No payment is taken.
Questions people ask
Does HMRC recommend any MTD software?
No. Every product on the GOV.UK software finder has been through HMRC's recognition process, but HMRC says it does not recommend any product or software provider.
Is there free MTD software for sole traders?
Yes. In October 2026 the GOV.UK finder listed free versions such as Coconut Free and Sage Sole Trader & Landlord Free, and Pandle and Clear Books had free plans without bank feeds. FreeAgent is free with some NatWest, RBS, Ulster Bank and Mettle accounts.
Can I keep using a spreadsheet?
Yes, if you add bridging software that sends your figures to HMRC. The spreadsheet and the software must be digitally linked, so no retyping or copy-and-paste once a record has been sent.
Do I need software that handles CIS?
If you are a CIS subcontractor, it helps. HMRC adds your CIS deductions to your MTD tax return, but you must check them before you submit, so choose a product that shows them properly.
Can I use one product for updates and another for my tax return?
Yes. GOV.UK allows more than one product, as long as they work together. Only one product can be used for each separate submission, such as the quarterly updates for your trade.
Sources
- Choose the right software for Making Tax Digital for Income Tax (GOV.UK)
- Find software that works with Making Tax Digital for Income Tax (GOV.UK software finder)
- Use Making Tax Digital for Income Tax: Create digital records (GOV.UK)
- Use Making Tax Digital for Income Tax: Submit your tax return (GOV.UK)
- Find out if and when you need to use Making Tax Digital for Income Tax (GOV.UK)
- Sign up for Making Tax Digital for Income Tax (GOV.UK)
This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.
Righto Tax is a trading name of NJG Consultancy Ltd, registered in England and Wales, company number 16095900. Registered office: Jubilee House, East Beach, Lytham St Annes, FY8 5FT.
What happens next
- Use the free Making Tax Digital checker to see your own start date and deadlines.
- See what Righto Tax for Trades does for you, and join the waitlist.
- Questions about this page? Email hello@rightotax.co.uk.