MTD software compared, honestly
The big packages are genuinely good — at being accounting software. The question is whether you need accounting software, or just your quarterly updates filed.
The comparison
| FreeAgent | Xero | QuickBooks | Sage | NippyTax (in development) | |
|---|---|---|---|---|---|
| Built for | Freelancers & small business accounting | Small business accounting | Small business accounting | Small business accounting | MTD quarterly updates, nothing else |
| MTD for Income Tax filing | Yes | Yes | Yes | Yes | Planned — will complete HMRC recognition before launch |
| Invoicing, banking, VAT, payroll modules | Yes | Yes | Yes | Yes | No — deliberately |
| Learning curve | Moderate | Steep for non-bookkeepers | Moderate–steep | Moderate–steep | Aiming at “none”: answer, review, send |
| Typical cost | ~£10–£33/month (free with some bank accounts) | ~£16–£59/month | ~£10–£90/month | ~£15–£59/month | Priced for the job — tell us what it's worth on the waitlist |
| Best if you… | Want proper accounts with a friendly face | Have a bookkeeper or complex business | Want the ecosystem | Are already in Sage-world | Want MTD done and your evening back |
Prices are list prices as of July 2026, rounded, excluding VAT and intro offers — check each vendor for current pricing. We've tried to be fair; if anything above is out of date, tell us and we'll fix it.
How to choose in five minutes
- You already use one of the suites? Stay put. They all file MTD updates; switching costs more than it saves.
- You have employees, VAT, or stock? You need a real accounting suite. Pick FreeAgent or Xero and get an accountant's opinion.
- You live in a spreadsheet and like it? Bridging software keeps that legal under MTD.
- Simple books, no appetite for bookkeeping software? That's who NippyTax is for. Landlords and one-person businesses who want quarterly updates to take minutes.
Frequently asked questions
What software can I use for MTD for Income Tax?
Anything on HMRC’s list of recognised software — which includes full accounting suites (FreeAgent, Xero, QuickBooks, Sage), bridging tools that file from spreadsheets, and simpler MTD-focused apps. HMRC publishes the current list on GOV.UK.
Is Xero or QuickBooks overkill for a landlord?
Often, yes. They are built around invoicing, banking, VAT and payroll. If your books are “rent in, expenses out”, you will use a fraction of the product but pay (and learn) for all of it. That is the gap simple MTD-only tools aim at.
What is the cheapest way to do MTD?
Usually free-tier or low-cost bridging from a spreadsheet, if you are comfortable maintaining one with digital links. See free MTD software options for the honest trade-offs.
Is NippyTax HMRC recognised?
Not yet — it is in development and will go through HMRC’s recognition process before launch. Nothing is for sale today; the waitlist tells us how many people want a simpler option (and tells you the moment it exists).
Get NippyTax when it launches
We are building the simplest possible way to do MTD quarterly updates — no accounting suite, no jargon. Join the waitlist and be first in when it launches.