The Best Free and Cheap MTD Software in 2026

It doesn't have to cost a lot

One of the biggest worries about Making Tax Digital is the cost of software. HMRC estimates it should cost somewhere around £11 a month, with an average annual cost of about £35 per business. But there are properly free options if you know where to look.

Starting with the ones that won't cost you a penny.

Free options

QuickFile offers a fully-featured MTD Income Tax solution for free if you have fewer than 1,000 ledger entries per year. For most sole traders and landlords with simple finances, that's plenty. It handles digital records, bank feeds, and quarterly submissions.

Clear Books Free is designed for small sole traders and property businesses that need basic digital record-keeping and filing. No monthly fee. It's more limited than the paid version but covers the MTD essentials.

FreeAgent is normally a paid product, but it's available for free if you bank with NatWest, Royal Bank of Scotland, Ulster Bank, or Mettle. It's a full accounting package with invoicing, expense tracking, and MTD submissions built in. If your bank's on that list, this is hard to beat.

Budget options

HMRC's own free software is available for very simple tax affairs, though it's basic and doesn't do things like bank feeds. Worth a look if your records are very simple.

Sage Accounting starts from around £12 a month. Solid all-rounder with bank feeds and MTD support.

Xero Starter is around £15 a month. Well-designed interface, good bank integration, widely used by accountants.

QuickBooks Simple Start is about £12 a month. Similar to Xero in features. Often has introductory offers.

Bridging software (for spreadsheet users)

If you want to keep your records in a spreadsheet and just need something to submit the data to HMRC:

AbraTax and My Tax Digital offer free or very low-cost bridging. You keep your records in Excel or Google Sheets and use the bridging tool to send quarterly updates to HMRC.

MTD Sheets gives you the first submission free, then charges from £0.49 per submission after that.

One thing to keep in mind with bridging software: it's the cheapest option, but it puts more responsibility on you. If your spreadsheet has errors, the bridging tool just sends what you've got. Full accounting software does more validation and categorisation for you.

How to choose

If you want dead simple: QuickFile (free) or Clear Books Free. Set it up, record your transactions, submit quarterly. Nothing extra.

If you want a proper accounting tool for free: FreeAgent through NatWest/RBS. Full package, no cost.

If you're happy to pay a bit: Xero, QuickBooks, or Sage. All solid. Pick whichever interface you prefer. Many accountants have a preference, so ask yours if you've got one.

If you love spreadsheets: A bridging tool like AbraTax plus your existing spreadsheet. Cheapest route but most manual work.

If you prefer to stick with Excel or Google Sheets, read our article on using spreadsheets for MTD.

One thing to check

Whatever you choose, make sure it's on HMRC's official list of compatible software. Search "find software for Making Tax Digital" on GOV.UK. If it's not on the list, it won't be able to submit your quarterly updates.

Don't overthink it

The software choice feels like a big decision, but it isn't really. All of these tools do the same core thing: store your records digitally and file with HMRC. You can switch later if your first choice doesn't work out.

Pick something, set it up this week, and move on. The software is a means to an end, not the end itself.

Once you've chosen, make sure you know what to submit each quarter and the key deadlines.