Best HMRC MTD Software 2026
From 6 April 2026, sole traders and landlords earning over £50,000 must use Making Tax Digital for Income Tax compatible software to keep digital records and submit quarterly updates to HMRC. We've compared the four most popular options.
Quick comparison: Making Tax Digital compatible software features
| Feature | Regulas | QuickBooks | Xero | FreeAgent |
|---|---|---|---|---|
| Making Tax Digital (Income Tax) quarterly submissions | ||||
| Final declaration | ||||
| HMRC tax calculations (live) | ||||
| AI categorisation | ||||
| UK property support | Limited | Limited | ||
| Foreign property support | Limited | |||
| Section 24 automatic | ||||
| HMRC guidance on-screen | ||||
| Agent portal | ||||
| Bank feeds | Coming soon | |||
| Invoicing | ||||
| MTD for VAT | ||||
| Payroll |
Pricing comparison (monthly)
| Tier | Regulas | QuickBooks | Xero | FreeAgent |
|---|---|---|---|---|
| Free / Cheapest | £0 | £6 | £15 | Free (NatWest) / £15.50 |
| Mid-tier | £5.99 | £12 | £30 | £29.50 |
| Professional | £12.99 | £22 | £42 | — |
| Enterprise / Agent | £29.99 | £32 | Partner pricing | — |
Our recommendations
Best for Making Tax Digital compliance: Regulas
If your primary need is quarterly submissions and final declarations, Regulas is purpose-built for exactly that. It's the only option with a permanent free tier, live HMRC tax calculations, and built-in HMRC guidance. Especially strong for landlords thanks to automatic Section 24 handling.
Best all-in-one for small businesses: QuickBooks
If you need invoicing, bank feeds, payroll, and MTD for VAT alongside Making Tax Digital for Income Tax, QuickBooks is a solid all-rounder. More expensive than Regulas but covers more ground. No free tier.
Best for accountancy practices: Xero
Xero's partner ecosystem (Xero HQ) makes it the go-to for accountants managing multiple clients. Full-featured but the most expensive option. Overkill for a straightforward sole trader.
Best free option (NatWest customers): FreeAgent
If you have a NatWest, RBS, or Ulster Bank business account, you get FreeAgent free — including Making Tax Digital for Income Tax support, invoicing, and Self Assessment. For non-NatWest users, Regulas is the better free choice.
How to choose Making Tax Digital compatible software
- What do you actually need? — If it's just Making Tax Digital compliance, a focused tool like Regulas is simpler and cheaper than a full accounting platform.
- Are you a landlord? — Property-specific features (Section 24, multi-property, joint ownership) vary significantly between providers.
- Budget — Regulas is the only permanently free option. FreeAgent is free for NatWest customers only.
- Agent access — If your accountant manages your MTD, check they can connect to your chosen software.
- HMRC recognition — Always verify the software is on HMRC's compatible software list.
Reminder: Making Tax Digital for Income Tax is mandatory from 6 April 2026 for sole traders and landlords with qualifying income over £50,000. Don't leave it to the last minute — sign up on GOV.UK and connect your software before the deadline.
Try Regulas free
Purpose-built Making Tax Digital software. Free tier, no credit card required.
Join the waitlistDisclaimer: Feature and pricing information is based on publicly available data as of March 2026 and may change. QuickBooks is a trademark of Intuit Inc. Xero is a trademark of Xero Limited. FreeAgent is a trademark of FreeAgent Central Limited (NatWest Group). Regulas is not affiliated with any of these companies. Always check each provider's website for the most current information.