The Best MTD Software for
UK Sole Traders
MTD for Income Tax lands in April 2026 for sole traders over £50,000. Here is an honest, side-by-side look at the software actually worth your money.
Estimate your self-employed tax in seconds
See what you would owe for the year, then file the real figures with TapTax in a couple of taps.
Total turnover before expenses
Under £1,000 we use the trading allowance automatically
Estimated tax bill
£6,872
15.3% effective rate for 2026/27
- Income tax
- £5,286
- Class 4 NI
- £1,586
Take-home pay
£32,128
after tax, NI and expenses
This is an estimate using HMRC-confirmed rates for 2026/27, not your official tax calculation. TapTax is MTD-compatible, so you can connect to HMRC and file the real figures in a couple of taps.
Choosing MTD software in 2026 is less about flashy features and more about three honest questions: is it on HMRC published software directory today, does it cover the income types on your return, and are you paying for support you will actually use? This page compares the genuinely sole-trader-focused options, including where each one wins and where it loses, so you can pick without the marketing gloss.
- MTD for Income Tax is mandatory from April 2026 for combined self-employment plus property income over £50,000, measured on gross income not profit.
- Kletta was listed on HMRC MTD software directory at our 5 August 2026 scrape and Pie was not; TapTax is MTD-compatible and going through HMRC recognition process, so check what matters more to you: a list entry now, or price and automation.
- Pie offers free filing plus paid one-off add-ons; Kletta is premium with a human bookkeeper; TapTax is freemium at £0 / £4.99 / £9.99 per month.
- For mixed income (rental, dividends, multiple freelance streams) Pie and Kletta have the broader supplementary-page coverage.
- For a low-cost, one-tap, open-banking workflow on your phone, TapTax is the focused pick.
The directory data behind this shortlist
This page used to rank products on our reading of their marketing. It now starts from HMRC's own record. HMRC publishes a feature grid for every product on its find-MTD-software service, using its three-state scale of ready now, in development, or not included, and we scraped all 122 listings on 5 August 2026.
Two numbers reframe the whole category.
87of 122 (71%)cannot complete a single tax-return itemHMRC MTD for Income Tax directory, scraped 5 August 2026 31of 122 (25%)list a free versionHMRC MTD for Income Tax directory, scraped 5 August 2026So most listed products can file your quarterly updates and cannot finish your return, and a quarter of them list a free version whose conditions vary enormously: some are forever-free, some are capped, some expire, and some require you to open a bank account.
Here are the products that clear the completeness bar, as HMRC grades them:
| Product | Free | Sole trader | UK property | Foreign property | Mobile app | Return items |
|---|---|---|---|---|---|---|
| MTD 4 Income Tax | Not included | Ready now | Ready now | Ready now | Android; Apple iOS | 16/16 |
| MTD Companion for iPhone & iPad | Not included | Ready now | Ready now | Ready now | Apple iOS | 16/16 |
| MTD Companion for macOS | Not included | Ready now | Ready now | Ready now | Not listed | 16/16 |
| AbraTax MTD for Income Tax | Not included | Ready now | Ready now | Ready now | Not listed | 15/16 |
| Abridge (MTD for Excel/Sheets) | Ready now | Ready now | Ready now | Ready now | Android; Apple iOS | 15/16 |
| Clear Books | Not included | Ready now | Ready now | Not included | Android; Apple iOS | 15/16 |
| Clear Books Free | Ready now | Ready now | Ready now | Not included | Android; Apple iOS | 15/16 |
| Forbes MTD | Not included | Ready now | Ready now | Ready now | Android | 15/16 |
| FreeAgent | Ready now | Ready now | Ready now | Not included | Android; Apple iOS | 15/16 |
| Kletta | Not included | Ready now | Ready now | Ready now | Android; Apple iOS | 15/16 |
| My Tax Digital (Free) | Ready now | Ready now | Ready now | Ready now | Not listed | 15/16 |
| QuickBooks (Intuit) | Not included | Ready now | Ready now | Not included | Android; Apple iOS | 15/16 |
| RentalBux | Not included | Ready now | Ready now | Ready now | Android; Apple iOS | 15/16 |
| RentalBux Free | Ready now | Ready now | Ready now | Ready now | Android; Apple iOS | 15/16 |
HMRC lists what each vendor declares. Feature flags, mobile-app support in particular, are vendor claims rather than verified facts, and listings change. Check with the vendor before you buy. Data: HMRC find-MTD-software service (tax.service.gov.uk), scraped 5 August 2026.
TapTax's honest position against that table: strong on the axes that decide whether software fits your business at all, with a permanent free tier, native iOS and Android apps, digital record-keeping and all three income sources including foreign property, and mid-pack on return items at roughly six to eight of 16. TapTax is MTD-compatible and going through HMRC's recognition process, so it is not on the 5 August 2026 scrape.
You can filter the full list yourself in the MTD software directory, and the complete analysis is in our review of all 122 HMRC-listed MTD tools.
The honest comparison table
| TapTax | Pie (pie.tax) | Kletta | FreeAgent | QuickBooks Self-Employed | |
|---|---|---|---|---|---|
| On HMRC directory (5 Aug 2026 scrape) | Not listed; recognition in progress | Not listed | Listed | Listed | Listed |
| Pricing model (Aug 2026) | Freemium £0 / £4.99 / £9.99 per month | Free filing; Tax Support £89/yr, accountant-handled MTD £199 | £19/mo Solo, £29/mo Duo self-serve; £49/mo Care adds a bookkeeper | £19/mo sole trader list, £0 with a NatWest, RBS, Ulster or Mettle account | £10 + VAT/mo |
| Free tier | Yes | Yes (filing) | No | No | No |
| Income breadth | Sole trade core, property and mixed via calculators | SA100 + supplementary (rental, dividends, multi-freelance) | CIS, property, capital allowances | Broad small-business | Basic self-employed |
| Human support | Software-led | Tax Support £89/yr; accountant-handled MTD £199 | UK bookkeeper + SA review on the Care tier | Accountant tools | Limited |
| Open-banking auto-import | Yes | Partial | Yes | Yes | Yes |
| AI categorisation | Yes | Partial | Yes | Rules-based | Basic rules |
| Mobile-first | Yes (one-tap filing) | Yes | Yes (snap-and-forget) | Partial | Partial |
| Notable | "Tap. File. Done." | "Best Tax App UK 2025" | Two-sided accountant channel | Established, broader | Established, pricier at full rate |
- MTD for Income Tax (ITSA)
- HMRC's requirement for sole traders and landlords to keep digital records and send quarterly income and expense updates, replacing the annual paper-style Self Assessment process. The qualifying test is on gross income, not profit.
What MTD for Income Tax actually demands
Before you weigh apps, understand the obligation. From April 2026, if your combined self-employment and property income tops £50,000 you must keep digital records and submit quarterly updates to HMRC, then a final declaration after year end. The threshold falls to £30,000 in April 2027 and £20,000 in April 2028. The test is on gross income, so a courier turning over £54,000 with £41,000 profit is in scope from day one. Whatever software you pick must handle quarterly cumulative submissions cleanly, because HMRC expects each quarter to carry your totals to date.
This is also the moment to get the basics of your tax position straight. For 2026/27 the personal allowance is £12,570, with basic rate 20% to £50,270, higher rate 40% to £125,140, and additional rate 45% above. The allowance tapers away between £100,000 and £125,140, creating an effective 60% marginal band that catches higher-earning sole traders out. Class 4 National Insurance runs at 6% between £12,570 and £50,270, then 2% above, with Class 2 settled through Self Assessment. If you trade in Scotland your code starts with S and you face six bands (19/20/21/42/45/48%); Wales uses a C code with rates currently matching the rest of the UK, and NIC is UK-wide. It is worth a quick tax code check before you file, because a wrong code silently distorts your figures.
Pie (pie.tax): free filing with paid human add-ons
Pie did not appear on HMRC find-MTD-software directory at our 5 August 2026 scrape, which is a dated fact about that list rather than a comment on the product, and listings change. What Pie does today is lean into a free Self Assessment filing model, charging for help rather than for filing: as checked in August 2026 that is Tax Support at £89 a year for unlimited access to a tax assistant, and an accountant-handled MTD add-on at £199. It is built around the SA100 and its supplementary pages, so rental income, dividends and multiple freelance income streams are first-class citizens rather than afterthoughts. Pie has also picked up a "Best Tax App UK 2025" accolade, which reflects genuine polish.
Where Pie wins: the core filing is free, and it covers a broad return. If you have a property page (SA105) with mortgage-interest relief restricted to a 20% tax credit, dividends within the £500 allowance, and a freelance side gig, Pie's breadth is a real advantage. Where it is less of a fit: if you want a single, automated month-to-month workflow rather than a return-centric experience, the model feels more like assisted filing than continuous bookkeeping.
Kletta: premium software plus a human bookkeeper
Kletta is Finnish-built, listed on the HMRC MTD software directory, and unapologetically premium. Its self-serve software tiers are Solo at £19 a month and Duo at £29 a month, £228 to £348 a year at list; the £49 Care tier is a different proposition because it includes a human UK bookkeeper. It has also been discounting heavily, so check the rate you are offered. The headline differentiator is people: paid tiers include a human UK bookkeeper and a Self Assessment review, plus a two-sided accountant channel. It covers CIS, property income and capital allowances, and the mobile experience is a "snap-and-forget" model designed to minimise manual entry.
Where Kletta wins: if you are a CIS subcontractor who deducts 20% (registered) or 30% (unregistered) and usually expects a refund through Self Assessment, having a human review your figures is reassuring. The same applies to landlords navigating capital allowances or the post-April-2025 world where the Furnished Holiday Lettings regime has been abolished. Where it loses: it is the most expensive option here, and for a single-income sole trader with simple expenses, you are paying for support you may rarely need. Run the numbers with our CIS tax calculator to see whether a refund alone justifies the monthly cost.
FreeAgent, QuickBooks Self-Employed and Coconut: the heavier incumbents
These are established, directory-listed tools, and that maturity counts. FreeAgent is broad and capable, sometimes free if you bank with NatWest, RBS or Mettle. QuickBooks Self-Employed is familiar and widely supported. Coconut bundles a business current account with tax tracking. The trade-off is that they are generally heavier, broader or pricier than a sole trader strictly needs, and the cheapest plans often arrive via bank bundles or promotional rates that step up later. If you want full invoicing, payroll-adjacent features or VAT returns (the VAT registration threshold is £90,000 on a rolling 12-month basis), these earn their keep. If you just need clean MTD filing, they can be overkill.
TapTax: low-cost, one-tap, built for Making Tax Digital
TapTax takes the opposite bet to the incumbents: do the sole-trader MTD job, do it cheaply, and do it on your phone. Pricing is freemium at £0, £4.99 and £9.99 per month, with open-banking auto-import, AI categorisation, receipt scanning and mileage tracking feeding a running tax estimate. The pitch is "Tap. File. Done." for quarterly updates.
The honest caveat: TapTax is MTD-compatible and built for Making Tax Digital, but HMRC production recognition is pending, whereas Kletta is listed on HMRC directory today. Pie did not appear on that directory at the 5 August 2026 scrape either, which is a dated fact about the list rather than a comment on the product. So the trade is real. If a name on HMRC's published list before you sign up is non-negotiable, that is a point for the recognised tools. If you value a free entry tier, the lowest paid prices in this comparison, and a genuinely one-tap mobile flow, TapTax is the focused choice. For sole traders with several income types, pairing TapTax with the multiple income calculator helps you sanity-check the full picture before you file.
The best MTD software is the one that is on HMRC list when you need it, covers the income on your return, and charges you only for the help you actually use. For many sole traders that means a cheap, automated app; for mixed income or CIS refunds it can mean broader coverage or a human review.
How to choose in one minute
- Want free annual Self Assessment filing with broad income coverage? Look at Pie, noting it did not appear on HMRC find-MTD-software directory at the 5 August 2026 scrape.
- Want a human bookkeeper and a reviewed return, and happy to pay premium? Look at Kletta.
- Already deep in invoicing, VAT or a bank bundle? FreeAgent or QuickBooks may suit.
- Want the lowest price, a free tier, and one-tap mobile filing, and comfortable that TapTax recognition is pending? Shortlist TapTax.
There is no single winner for every sole trader. Recognised-today breadth (Pie, Kletta) and low-cost automation (TapTax) are genuinely different products solving the same deadline. Map your income types, your appetite for human support, and your monthly budget against the table above, and the right pick usually becomes obvious. Read more on the timeline in our MTD for sole traders guide.
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