There are over 20 different software providers on HMRC’s approved MTD list!
But which one is right for you?
If you’re a small business owner, a landlord, freelancer, or side hustler then you may well be trying to get your head around Making Tax Digital for Income Tax Self Assessment (MTD ITSA). The last thing you want is a lot of jargon that leads to you selecting software that doesn’t suit your needs.
The first phase of MTD ITSA is due to start in April 2026 which is why we've put this guide together. Over the past few months, we’ve been working with clients just like you, people earning over £50,000 per year who now need to file quarterly digital returns. Many were either confused, overwhelmed, or unsure of the features that really mattered, or an element of all 3.
To address this, we've done all the digging for you. We've evaluated what in our opinion is the top 5 MTD-compatible software options for you. This has included looking at a vast range of important review items including:
From this we've been able to build a comparison table to help get you ready. By reading this you can then pick the right product for your needs, and launch into MTD with as minimal disruption as possible to your day-to-day activities! Click on the relevant blue header link (left column) in the table for more information about each comparison section.
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Xero |
FreeAgent |
Dext |
Absolute Accounting Software |
Hammock |
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| Best for | Landlords Sole traders |
Landlords Sole traders |
Landlords Sole traders |
Landlords Sole traders |
Landlords |
| Price per month (exc VAT) |
Simple: £7 Ignite: £16 |
Landlord: £4.17 Sole trader: £7.92 FREE for those banking with Natwest, RBS, or Mettle |
£2.50 But only available through an accountant or bookkeeper
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Standard: £3.33 Additional: £5.42 |
1-3 Properties: 4-10 Properties: £15 11-20 Properties: £25 |
| Invoicing & credit control tools |
⚠️Invoicing functionality but with volume limits ⚠️Simple: Up to 10 invoices per month. ⚠️Ignite: Up to 20 invoices per month. ⚠️Only basic templates available ✅Status tracking ✅Recurring invoices ✅Auto reminders ✅Online 'pay now' option ✅Mobile invoicing ✅Credit limits
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✅Unlimited invoices per month ✅Branded & HMRC-compliant templates ✅Automation for recurring invoices ✅Status tracking ✅Auto reminders ✅Online 'pay now' option ✅Mobile invoicing |
❌No invoice or credit control features, just data capture, and supplier invoice processing
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❌Not a day-to-day invoice or credit control tool
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✅ Yes, for landlords ✅Automated rent tracking ✅Real-time arrears notifications ✅Identifies missed payments
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| Bank reconciliation |
✅Open banking (Direct) included with both products ✅Imported daily ✅Manual uploads ✅Historical data up to 12 months |
✅Open banking (Direct) ✅Imported daily ✅Manual uploads ⚠️Historical data varies by bank
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✅Open banking (Direct) 🏆Imported in real time ✅Manual uploads ✅Historical data, 30 days initial, up to 2 years of history |
❌No direct banking feed ⚠️Manual uploads only available through Excel ❌No historical data |
✅Open banking (Direct) 🏆Imported in real time ❌No manual uploads ❌No historical data |
| Problems / limitations |
❌Strict invoice caps ❌No foreign currency support ❌Limitations on bills ❌Restricted analytics ❌More expensive monthly cost ❌Challenges to tracking rental properties ❌Xero Simple is a non-VAT tool |
❌Fewer ❌Fewer inventory / CRM integrations ❌Interface less modern than other products ❌Requires 2 licenses where there's a need to record both sole trader and rental income ❌Splitting of transactions between property and sole trader income requires multiple transaction lines
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❌Doesn't do VAT calculations ❌Can't send invoices ❌Unable to generate reports that enable the preparation of accounts ❌Limits on data capture volume ❌Requires separate bookkeeping per taxpayer, so each landlord must run their own plan and cannot share records |
❌Not for daily invoicing ❌No direct bank feed ❌Lack of app integrations ❌Requires fully manual data input from user ❌Clients required to store the virtual docs themselves external to the software
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❌Only for landlords ❌Limited 3rd party apps ❌No ability to report sole trader income ❌Relatively expensive dependant on number of properties |
| Number of 3rd Party integrations | 1,000+ | 90+ | 11,000 | N/A (not designed for 3rd party apps) |
Focus on property specific tools |
| Trustpilot customer support review rating (as at 31 Jan 2026) |
⭐⭐⭐⭐ 4.1 rating on 10,371 reviews |
⭐⭐⭐⭐⭐ 4.6 rating on 2,740 reviews |
⭐⭐⭐⭐⭐ 4.7 rating on 1,823 reviews |
⭐⭐⭐ 3.4 rating on |
⭐⭐⭐⭐⭐ 4.8 rating on 62 reviews |
| Mobile app availability | 📲⚠️Yes, Simplicity for on the go. But reduced functionality cited |
📲✅Yes, full access to raise/send invoices, track expenses, and view bank feeds on the go |
📲✅Yes, mainly focused on receipt & invoice capture as well as data extraction | 📲❌ No, desktop software only, no mobile app for use on the move | 📲✅Yes, enables landlords to track rent collection, view property finances, and manage tasks |
| Tax estimate | 👮✅Yes, helps with tax compliance and calculations, direct MTD submissions |
👮✅Yes, automated real-time tax calculations and direct MTD submissions |
👮❌ Dext can prepare data for filing but not calculate or file the tax submission itself |
👮✅Yes, calculates final accounts, Corporation Tax, & Self Assessment, & submit to HMRC, plus direct MTD submissions |
👮✅Yes, for landlords providing tax statements for self assessment |
| Ease of use |
🙏Intuitive dashboard 🖥️Easy to setup 🛂AI driven suggestions & automation 🎓Easy to learn within 1-2 weeks |
🙏Intuitive, clear, single-paged dashboard 🖥️Quick to setup, often linked via bank accounts 🛂High automation levels for bank reconciliation & tax filings 🎓Very easy to learn, often cited as simplest user Interface for accounting |
🙏Simple, mobile-first interface 🖥️Quick setup by connecting banks & suppliers 🛂High automation for data capture 🎓Very easy, minimal learning needed for capturing receipts |
🙏Functional interface by less modern 🖥️Technical setup required 🛂Manual data entry requirement, no AI 🎓Less suited to casual users, relies more on spreadsheets and manual input |
🙏Intuitive and clean dashboard 🖥️Easy to set up & connect property bank accounts 🛂High level of automation for rent matching 🎓Very easy to learn for property finance management |
| Support, resources, & training |
👫Users encouraged to use Xero Central first 🎗️Plans include free, unlimited online support 24/7 🆘Onboarding assistance is included digitally ☎️No public support phone number available |
👫Support portal with extensive UK-specific guides 🎗️UK based live chat support and email available in business hours 🆘Free webinars and weekly 'Getting Started' sessions ☎️Phone support is available which is rare |
👫Dext Help Centre includes detailed video tutorials 🎗️Email and chat support included for all tiers 🆘Onboarding sessions available for business / practice plans ☎️No phone support for standard users |
👫Technical document aimed at accountants for set up 🎗️Support is direct and high-touch for practice users 🆘Minimal general training, relies on user having accounting knowledge ☎️Direct UK phone support for technical queries |
👫Intercom chat-based support along with property guides 🎗️Direct support for landlord finance queries 🆘Property tax webinars and onboarding help is made available ☎️No general phone support, instead chat and email |
| Security & data protection |
✅Two-factor authentication on login ✅Data encryption, SSL / TLS ✅Automated data backups ✅Machine learning used to monitor unusual activity ✅Control through roles and permission who has access to what |
✅Two-factor authentication on login ✅Data encryption, SSL / TLS ✅Automated data backups ✅Machine learning used to monitor unusual activity ✅Control through roles and permission who has access to what |
✅Two-factor authentication for data uploads ✅Data encryption, SSL / TLS ✅Digital archive of all receipts / invoices ✅Audit trails available for document processing ✅Levels for users vs administrators |
✅Two-factor authentication required for HMRC submissions ✅Data encrypted for local or cloud based filings ⚠️Backups are dependent on users and their local / cloud setup ❌Minimal activity monitoring, focus is on manual filing accuracy |
✅Two-factor authentication to protect landlord financial data ✅Data encryption, SSL / TLS bank-grade security for Open Banking ✅Automated backups of property finances ✅Activity monitoring through bank feed connections ✅Shared access and role permissions available for joint landlords
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If your total qualifying income as a sole trader or landlord reaches, or exceeds, £50,000 per year then you're in phase 1 of MTD ITSA. So, per our guide to MTD, you need to keep digital records of your income and earnings to submit quarterly updates to HMRC. Here's the thing, not all accounting software is approved for MTD ITSA!
We've made sure the software being compared is compatible, meaning:
Tools that aren't MTD compliant may be useful for bookkeeping but they won't meet the requisite filing requirements. Of note, MTD compatibility status is based on HMRC’s approved published list at the time of writing and this may change as providers update their software.
Not every MTD tool is built for everyone. Some products work best for landlords with multiple rental properties. Others are less complex and designed for developing side hustles or those operating as freelancers. So we have specified who each software product is designed for, and well suited to. Make sure you don't waste your time or money on something that's the wrong fit!
How much will you have to pay each month compared to what you've budgeted for? Some products have free initial versions, or pay-per-return pricing. Others charge monthly with the amount of expense based on tiers, think level of functionality and reporting requirements. This can all vary according to the sector you're in.
Be sure to understand your reporting requirements and what you need from the software prior to any purchase decision. After all this decision is likely to be about more than just compliance with MTD. We've removed VAT for a cleaner comparison.
Do you send invoices? Do you need help with credit control and chasing late payments? This is where software can help make your life a bit easier. We've reviewed whether each option can create, send, and follow up on professional invoices. There's also the question of if they enable reminders and notifications about overdue payments.
This is about whether the software can connect to your bank account and then automatically match to what's coming in and going out. If this isn't feasible then you'll have to manually upload and adjust for your bank statements which could take up valuable time.
Nothing is perfect! Every product has some kind of fault or issue, maybe it's a complex interface, perhaps it doesn't support certain types of users, or lacks specific features. We've pulled together the common frustrations, gaps, and known issues. That way you're not caught off guard after you've made an investment decision.
You'll want to know if it can plug in, and work with, other tools you already use. Maybe it's a payment platform, your CRM, or a productivity tool. We've listed how many each software product connects with and linked to their integration page where available.
See what real users have to say about each product. We've provided the current Trustpilot rating at the time of producing this post, along with how many reviews it's based on. You'll then have a useful snapshot of overall user satisfaction and how responsive support tends to be.
So much business these days is conducted on the go. This is a case of logging expenses, sending invoices, or checking tax estimates while out of the office. What's available through iOS and Android and what can you actually do through those apps?
Does the software help you understand how much tax you owe given your income and expenses so far? Some can even offer you a live tax forecast! Others don't provide this service at all.
If you're not an accountant then ease of use if likely to be essential. That's why we've looked at how intuitive each tool is. How clear and easy to use each dashboard feels, and how quickly a new user can commence recording income and filing their tax details.
The age old problem of what happens when you get stuck? When you can't figure out what to do, or if you go wrong! Some platforms provide a live chat, other phone calls with customer support, some deliver video tutorials and even host webinars. We've highlighted what kind of help you can expect, and when.
Remember you're entering sensitive personal, financial data into this software. You're trusting the provider to store it and keep it safe from prying eyes! So, in this case security really matters! We've highlighted for you where the provider uses encryption, where the data is stored, and the level of transparency regarding their security set up.
If the above question applies to you, don't worry, it's normal in our experience. The truth is the right MTD ITSA software depends on your setup, how tech confident you are, and how hands on you want to be.
If you want to skip any potential trial and error, we're here to help with straight answers and no pressure.
Please be aware that information provided by this blog is subject to regular legal and regulatory change. We recommend that you do not take any information held within our website or guides (eBooks) as a definitive guide to the law on the relevant matter being discussed. We suggest your course of action should be to seek legal or professional advice where necessary rather than relying on the content supplied by the author(s) of this blog.