{
 "title": "What MTD for Income Tax software really costs (UK)",
 "checked": "2026-10-10",
 "answer": [
  "Among the 13 MTD for Income Tax products we evaluated on 10 October 2026, for a sole trader who isn't VAT-registered and has no bank deal, the lowest-cost paid plan with confirmed year-end filing costs £156.24 over the first two years including VAT: Xero Simple or Sage Sole Trader, £55.44 in year one with the 90% six-month intro offer, then £100.80 a year.",
  "With both trade and rental income, FreeAgent needs two accounts and costs £522 over the first two years including VAT, about 3.3 times the lowest-cost paid option with confirmed year-end filing among the products we evaluated (£156.24)."
 ],
 "rules": [
  {
   "topic": "Who must start, and when",
   "rule": "Qualifying income over £50,000 in 2024-25: from 6 April 2026. Over £30,000 in 2025-26: from 6 April 2027. Over £20,000 in 2026-27: from 6 April 2028.",
   "source": "https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax"
  },
  {
   "topic": "What counts as qualifying income",
   "rule": "Gross self-employment turnover plus gross property income (your share of joint property), before expenses. Wages, dividends, pensions and partnership shares don't count.",
   "source": "https://www.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax"
  },
  {
   "topic": "Quarterly updates",
   "rule": "Due 7 August, 7 November, 7 February and 7 May. No penalty points for late updates in 2026-27; from 2027-28, 4 points means a £200 penalty.",
   "source": "https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates"
  },
  {
   "topic": "Exemptions",
   "rule": "Extra time or cost on its own isn't a reason for an exemption.",
   "source": "https://www.gov.uk/guidance/find-out-if-you-can-get-an-exemption-from-making-tax-digital-for-income-tax"
  },
  {
   "topic": "HMRC's software guidance",
   "rule": "HMRC points to third-party software, some of it free with usage limits.",
   "source": "https://www.gov.uk/guidance/choose-the-right-software-for-making-tax-digital-for-income-tax"
  }
 ],
 "products": [
  {
   "name": "Xero Simple",
   "price": "£7/month + VAT; 90% off for 6 months (Xero may withdraw the offer)",
   "conditions": "Not for VAT-registered businesses. 10 invoices a month. Xero says one subscription can hold several income streams.",
   "source": "https://www.xero.com/uk/pricing-plans/simple/",
   "checked": "2026-10-10"
  },
  {
   "name": "QuickBooks Sole Trader Plus",
   "price": "£10/month + VAT; 90% off for 6 months (offer shown as ending 1 November 2026)",
   "conditions": "Not for VAT-registered businesses. Aimed at sole traders and single-property landlords.",
   "source": "https://quickbooks.intuit.com/uk/pricing/",
   "checked": "2026-10-10"
  },
  {
   "name": "FreeAgent",
   "price": "Sole trader £190/year, landlord £100/year (+ VAT); 50% off the first year",
   "conditions": "Trade and rental income need two separate accounts. Free with a NatWest, RBS, Ulster or active Mettle business account (one account per bank account).",
   "source": "https://www.freeagent.com/pricing/",
   "checked": "2026-10-10"
  },
  {
   "name": "Sage Sole Trader Free",
   "price": "£0",
   "conditions": "Not for VAT-registered businesses. One income source (trade or UK property), 25 auto-categorised transactions, 5 invoices a month.",
   "source": "https://www.sage.com/en-gb/products/sage-sole-trader/",
   "checked": "2026-10-10"
  },
  {
   "name": "Sage Sole Trader",
   "price": "£7/month + VAT; 90% off for 6 months",
   "conditions": "Not for VAT-registered businesses.",
   "source": "https://www.sage.com/en-gb/products/sage-sole-trader/",
   "checked": "2026-10-10"
  },
  {
   "name": "Coconut MTD filing",
   "price": "£129.99/year including the year-end return",
   "conditions": "VAT basis not stated; confirm the price in the app.",
   "source": "https://getcoconut.com/pricing",
   "checked": "2026-10-10"
  },
  {
   "name": "Hammock (landlords)",
   "price": "£76.80/year + VAT for 1–3 properties (annual); £15/month for 4–10",
   "conditions": "Landlords only.",
   "source": "https://usehammock.com/pricing",
   "checked": "2026-10-10"
  },
  {
   "name": "Monzo Business",
   "price": "Free with the free business account",
   "conditions": "Cash basis only.",
   "source": "https://monzo.com/business-banking/features/making-tax-digital",
   "checked": "2026-10-10"
  },
  {
   "name": "Starling",
   "price": "Free with a sole trader account",
   "conditions": "Year-end return 'coming soon': can't yet file the final declaration.",
   "source": "https://www.starlingbank.com/features/making-tax-digital/",
   "checked": "2026-10-10"
  },
  {
   "name": "Pandle",
   "price": "Free (MTD IT submissions included); Pro £5/month + VAT",
   "conditions": "Doesn't say whether the final declaration is included.",
   "source": "https://pandle.com/pricing/",
   "checked": "2026-10-10"
  },
  {
   "name": "Affordable MTD (bridging)",
   "price": "Free for 2026-27, then £19.99/year",
   "conditions": "For spreadsheet users. No foreign property yet.",
   "source": "https://affordablemtd.com",
   "checked": "2026-10-10"
  },
  {
   "name": "VitalTax (bridging)",
   "price": "£30/year per person + VAT",
   "conditions": "Doesn't say whether the year-end declaration is included.",
   "source": "https://vitaltax.co.uk/pricing",
   "checked": "2026-10-10"
  },
  {
   "name": "Coconut Bridging",
   "price": "£49.99/year + £49.99 for the year-end",
   "conditions": "For spreadsheet users.",
   "source": "https://getcoconut.com/pricing",
   "checked": "2026-10-10"
  }
 ],
 "scenarios": [
  {
   "id": "se_nonvat",
   "label": "Sole trader, not VAT-registered, no bank deal, no spreadsheet",
   "inputs": {
    "se": 40000,
    "prop": 0,
    "props": 0,
    "vat": "n",
    "bank": "none",
    "sheet": "n"
   },
   "prices_include_vat": true,
   "options": [
    {
     "name": "Sage Sole Trader Free",
     "year1": 0,
     "year2": 0,
     "two_year": 0,
     "vat_basis": "none",
     "year_end": "confirmed",
     "note": "Limits: one income source, 25 auto-categorised transactions, 5 invoices/mo."
    },
    {
     "name": "Xero Simple",
     "year1": 55.44,
     "year2": 100.8,
     "two_year": 156.24,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Intro 90% off for 6 months can be withdrawn. 10 invoices/mo."
    },
    {
     "name": "Sage Sole Trader",
     "year1": 55.44,
     "year2": 100.8,
     "two_year": 156.24,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Intro 90% off for 6 months."
    },
    {
     "name": "QuickBooks Sole Trader Plus",
     "year1": 79.2,
     "year2": 144,
     "two_year": 223.2,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": ""
    },
    {
     "name": "Coconut MTD filing",
     "year1": 129.99,
     "year2": 129.99,
     "two_year": 259.98,
     "vat_basis": "unk",
     "year_end": "confirmed",
     "note": "Includes year-end. Confirm the price in the app."
    },
    {
     "name": "FreeAgent",
     "year1": 114,
     "year2": 228,
     "two_year": 342,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Annual billing, 50% off the first year."
    },
    {
     "name": "Pandle Free",
     "year1": 0,
     "year2": 0,
     "two_year": 0,
     "vat_basis": "none",
     "year_end": "not stated",
     "note": "MTD IT submissions included. Doesn't say whether the final declaration is included. Bank feeds need Pro (£5/mo + VAT)."
    }
   ]
  },
  {
   "id": "se_vat",
   "label": "Sole trader, VAT-registered, no bank deal",
   "inputs": {
    "se": 120000,
    "prop": 0,
    "props": 0,
    "vat": "y",
    "bank": "none",
    "sheet": "n"
   },
   "prices_include_vat": false,
   "options": [
    {
     "name": "Coconut MTD filing",
     "year1": 129.99,
     "year2": 129.99,
     "two_year": 259.98,
     "vat_basis": "unk",
     "year_end": "confirmed",
     "note": "Includes year-end. Confirm the price in the app."
    },
    {
     "name": "FreeAgent",
     "year1": 95,
     "year2": 190,
     "two_year": 285,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Annual billing, 50% off the first year."
    },
    {
     "name": "Pandle Free",
     "year1": 0,
     "year2": 0,
     "two_year": 0,
     "vat_basis": "none",
     "year_end": "not stated",
     "note": "MTD IT submissions included. Doesn't say whether the final declaration is included. Bank feeds need Pro (£5/mo + VAT)."
    }
   ]
  },
  {
   "id": "landlord_2",
   "label": "Landlord with 2 properties only, not VAT-registered",
   "inputs": {
    "se": 0,
    "prop": 35000,
    "props": 2,
    "vat": "n",
    "bank": "none",
    "sheet": "n"
   },
   "prices_include_vat": true,
   "options": [
    {
     "name": "Sage Sole Trader Free",
     "year1": 0,
     "year2": 0,
     "two_year": 0,
     "vat_basis": "none",
     "year_end": "confirmed",
     "note": "Limits: one income source, 25 auto-categorised transactions, 5 invoices/mo."
    },
    {
     "name": "Xero Simple",
     "year1": 55.44,
     "year2": 100.8,
     "two_year": 156.24,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Intro 90% off for 6 months can be withdrawn. 10 invoices/mo."
    },
    {
     "name": "Sage Sole Trader",
     "year1": 55.44,
     "year2": 100.8,
     "two_year": 156.24,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Intro 90% off for 6 months."
    },
    {
     "name": "FreeAgent",
     "year1": 60,
     "year2": 120,
     "two_year": 180,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Annual billing, 50% off the first year."
    },
    {
     "name": "Hammock Basic",
     "year1": 92.16,
     "year2": 92.16,
     "two_year": 184.32,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "1–3 properties, annual billing."
    },
    {
     "name": "Coconut MTD filing",
     "year1": 129.99,
     "year2": 129.99,
     "two_year": 259.98,
     "vat_basis": "unk",
     "year_end": "confirmed",
     "note": "Includes year-end. Confirm the price in the app."
    },
    {
     "name": "Pandle Free",
     "year1": 0,
     "year2": 0,
     "two_year": 0,
     "vat_basis": "none",
     "year_end": "not stated",
     "note": "MTD IT submissions included. Doesn't say whether the final declaration is included. Bank feeds need Pro (£5/mo + VAT)."
    }
   ]
  },
  {
   "id": "se_and_landlord",
   "label": "Sole trader and landlord, not VAT-registered",
   "inputs": {
    "se": 30000,
    "prop": 15000,
    "props": 1,
    "vat": "n",
    "bank": "none",
    "sheet": "n"
   },
   "prices_include_vat": true,
   "options": [
    {
     "name": "Xero Simple",
     "year1": 55.44,
     "year2": 100.8,
     "two_year": 156.24,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Intro 90% off for 6 months can be withdrawn. 10 invoices/mo. Xero says one subscription can hold several income streams."
    },
    {
     "name": "Sage Sole Trader",
     "year1": 55.44,
     "year2": 100.8,
     "two_year": 156.24,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Intro 90% off for 6 months. The free plan covers only one income source, so trade + rental needs a paid plan."
    },
    {
     "name": "Coconut MTD filing",
     "year1": 129.99,
     "year2": 129.99,
     "two_year": 259.98,
     "vat_basis": "unk",
     "year_end": "confirmed",
     "note": "Includes year-end. Confirm the price in the app."
    },
    {
     "name": "FreeAgent",
     "year1": 174,
     "year2": 348,
     "two_year": 522,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Needs two separate accounts (sole trader + landlord)."
    },
    {
     "name": "Pandle Free",
     "year1": 0,
     "year2": 0,
     "two_year": 0,
     "vat_basis": "none",
     "year_end": "not stated",
     "note": "MTD IT submissions included. Doesn't say whether the final declaration is included. Bank feeds need Pro (£5/mo + VAT)."
    }
   ]
  },
  {
   "id": "se_natwest",
   "label": "Sole trader with a NatWest/RBS/Ulster business account",
   "inputs": {
    "se": 40000,
    "prop": 0,
    "props": 0,
    "vat": "n",
    "bank": "natwest",
    "sheet": "n"
   },
   "prices_include_vat": true,
   "options": [
    {
     "name": "FreeAgent (free with your bank)",
     "year1": 0,
     "year2": 0,
     "two_year": 0,
     "vat_basis": "none",
     "year_end": "confirmed",
     "note": "Free while you keep the account (Mettle: at least one transaction a month)."
    },
    {
     "name": "Sage Sole Trader Free",
     "year1": 0,
     "year2": 0,
     "two_year": 0,
     "vat_basis": "none",
     "year_end": "confirmed",
     "note": "Limits: one income source, 25 auto-categorised transactions, 5 invoices/mo."
    },
    {
     "name": "Xero Simple",
     "year1": 55.44,
     "year2": 100.8,
     "two_year": 156.24,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Intro 90% off for 6 months can be withdrawn. 10 invoices/mo."
    },
    {
     "name": "Sage Sole Trader",
     "year1": 55.44,
     "year2": 100.8,
     "two_year": 156.24,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Intro 90% off for 6 months."
    },
    {
     "name": "QuickBooks Sole Trader Plus",
     "year1": 79.2,
     "year2": 144,
     "two_year": 223.2,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": ""
    },
    {
     "name": "Coconut MTD filing",
     "year1": 129.99,
     "year2": 129.99,
     "two_year": 259.98,
     "vat_basis": "unk",
     "year_end": "confirmed",
     "note": "Includes year-end. Confirm the price in the app."
    },
    {
     "name": "Pandle Free",
     "year1": 0,
     "year2": 0,
     "two_year": 0,
     "vat_basis": "none",
     "year_end": "not stated",
     "note": "MTD IT submissions included. Doesn't say whether the final declaration is included. Bank feeds need Pro (£5/mo + VAT)."
    }
   ]
  },
  {
   "id": "se_spreadsheet",
   "label": "Sole trader who wants to keep a spreadsheet",
   "inputs": {
    "se": 40000,
    "prop": 0,
    "props": 0,
    "vat": "n",
    "bank": "none",
    "sheet": "y"
   },
   "prices_include_vat": true,
   "options": [
    {
     "name": "Sage Sole Trader Free",
     "year1": 0,
     "year2": 0,
     "two_year": 0,
     "vat_basis": "none",
     "year_end": "confirmed",
     "note": "Limits: one income source, 25 auto-categorised transactions, 5 invoices/mo."
    },
    {
     "name": "Affordable MTD (bridging)",
     "year1": 0,
     "year2": 19.99,
     "two_year": 19.99,
     "vat_basis": "unk",
     "year_end": "confirmed",
     "note": "Free for 2026-27. No foreign property."
    },
    {
     "name": "Xero Simple",
     "year1": 55.44,
     "year2": 100.8,
     "two_year": 156.24,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Intro 90% off for 6 months can be withdrawn. 10 invoices/mo."
    },
    {
     "name": "Sage Sole Trader",
     "year1": 55.44,
     "year2": 100.8,
     "two_year": 156.24,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Intro 90% off for 6 months."
    },
    {
     "name": "Coconut Bridging",
     "year1": 99.98,
     "year2": 99.98,
     "two_year": 199.96,
     "vat_basis": "unk",
     "year_end": "confirmed",
     "note": "£49.99/yr + £49.99 year-end."
    },
    {
     "name": "QuickBooks Sole Trader Plus",
     "year1": 79.2,
     "year2": 144,
     "two_year": 223.2,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": ""
    },
    {
     "name": "Coconut MTD filing",
     "year1": 129.99,
     "year2": 129.99,
     "two_year": 259.98,
     "vat_basis": "unk",
     "year_end": "confirmed",
     "note": "Includes year-end. Confirm the price in the app."
    },
    {
     "name": "FreeAgent",
     "year1": 114,
     "year2": 228,
     "two_year": 342,
     "vat_basis": "ex",
     "year_end": "confirmed",
     "note": "Annual billing, 50% off the first year."
    },
    {
     "name": "Pandle Free",
     "year1": 0,
     "year2": 0,
     "two_year": 0,
     "vat_basis": "none",
     "year_end": "not stated",
     "note": "MTD IT submissions included. Doesn't say whether the final declaration is included. Bank feeds need Pro (£5/mo + VAT)."
    },
    {
     "name": "VitalTax (bridging)",
     "year1": 36,
     "year2": 36,
     "two_year": 72,
     "vat_basis": "ex",
     "year_end": "not stated",
     "note": "Unclear whether the year-end declaration is included."
    }
   ]
  }
 ],
 "distinctive_facts": [
  {
   "id": "P1-F1",
   "text": "Among the 13 MTD for Income Tax products we evaluated on 10 October 2026, for a sole trader who isn't VAT-registered and has no bank deal, the lowest-cost paid plan with confirmed year-end filing costs £156.24 over the first two years including VAT: Xero Simple or Sage Sole Trader, £55.44 in year one with the 90% six-month intro offer, then £100.80 a year."
  },
  {
   "id": "P1-F2",
   "text": "With both trade and rental income, FreeAgent needs two accounts and costs £522 over the first two years including VAT, about 3.3 times the lowest-cost paid option with confirmed year-end filing among the products we evaluated (£156.24)."
  }
 ],
 "limitations": [
  "Coverage: this page compares 13 products we checked on 10 October 2026. It is not a whole-market comparison. Other MTD for Income Tax products exist, some free or cheaper; see HMRC's software finder for the full list.",
  "Prices are list prices checked on 10 October 2026 on each provider's own page. Offers and prices change; confirm before buying.",
  "Two-year totals assume the intro offers shown were available when you signed up, and add 20% VAT where the provider quotes ex-VAT and you aren't VAT-registered.",
  "Free plans have usage limits (transactions, invoices, income sources). Check they fit your volume.",
  "Information, not tax advice. No provider pays for placement and there are no affiliate links."
 ]
}