Cheapest MTD Software for UK Sole Traders 2026 — Ranked by Price

Most sole traders do not need expensive software to comply with Making Tax Digital. The range runs from genuinely free to around £20/month for a full-featured platform. Here is a clear view of what you actually get at each price point, so you can make the right call without overspending.

Price overview

Software	Monthly price (ex VAT)	Free trial	MTD submissions	Self Assessment	Bank feed
FreeAgent (via NatWest/RBS/Mettle)	Free	—	Yes	Yes	Yes
Sage Sole Trader (free tier)	Free	—	Yes	No	No
Starling Bank MTD tool	Free	—	Yes	No	Built in
HMRC digital service	Free	—	Yes	No	No
QuickBooks Sole Trader	£10/month	30 days	Yes	Yes	Yes
Xero Ignite	£16/month	30 days	Yes	Yes	Yes
Sage (paid tier)	From £7/month	30 days	Yes	No	Yes
FreeAgent (direct, no bank)	£19/month + VAT	30 days	Yes	Yes	Yes

Prices correct as of May 2026. Always verify current pricing directly with the provider.

Free: FreeAgent via NatWest, RBS, Ulster Bank, or Mettle

The best free option — and arguably the best overall option at any price — if you bank with the right institution.

Business customers of NatWest, RBS, Ulster Bank, and Mettle (NatWest's free digital business account) receive the complete FreeAgent product. That includes bank feeds, MTD quarterly submissions, Self Assessment filing, a real-time tax estimate, invoicing, and mobile receipt capture. There is no feature reduction compared to the paid version.

The qualification requirement is simply holding an eligible business current account. If you already bank with NatWest or RBS, FreeAgent is already available to you — activate it through your business banking portal.

If you are not with these banks but are open to switching, Mettle is a free current account with no monthly fees. The combination of free banking and free FreeAgent is the most cost-effective MTD setup in the market.

Free: Sage Sole Trader (free tier)

Sage offers a free tier under its Sage Sole Trader product. It requires no specific bank account — anyone can sign up. It covers MTD quarterly HMRC submissions and basic invoicing.

The limitations: no automatic bank feed (you record transactions manually or upload a statement), and a monthly cap on invoices. For sole traders with uncomplicated finances and low invoice volumes, it works. For anyone who wants automation, the Sage paid tier (from £7/month) or QuickBooks are better value.

£10/month: QuickBooks Sole Trader

The lowest-cost entry point for a full-featured paid MTD solution.

QuickBooks Sole Trader (previously called QuickBooks Self Employed) is designed specifically for sole traders. At £10/month excluding VAT, it covers:

• Bank feeds connected via Open Banking
• Income and expense tracking
• Invoicing with payment tracking
• Mileage tracking — the best of any MTD software in this category
• Receipt capture via phone camera
• MTD quarterly submissions
• Self Assessment filing

The mobile app is notably strong. If you capture expenses on the go — tradespeople, delivery drivers, photographers, consultants who travel — QuickBooks handles this more smoothly than any other option at this price.

At £120/year (£144 including VAT), QuickBooks Sole Trader is hard to beat on value for a complete paid solution. Review our full QuickBooks review for more detail.

£7–16/month: Sage paid tiers and Xero

Sage paid plans from £7/month add bank feeds, AI-assisted categorisation, and more invoicing capacity to the free tier functionality. Sage is a strong choice if you value UK-based phone and chat support, which the other providers do not offer.

Xero Ignite at £16/month is the standard recommendation for sole traders who work with an accountant. Xero has the widest adoption among UK accountants, meaning your accountant is more likely to already know it. Its ecosystem of third-party app integrations (1,000+) is also the strongest. For sole traders who manage their own accounts without an accountant, QuickBooks at £10/month gives better value.

£19/month + VAT: FreeAgent direct

If you cannot get FreeAgent free through your bank and do not want to switch, the direct paid plan is £19/month + VAT (£22.80 including VAT). This is more expensive than QuickBooks but FreeAgent's Self Assessment integration and tax timeline are genuinely better for UK-focused sole traders who file their own returns.

Worth the premium if:

• Self Assessment filing experience matters more than price
• You want the tax timeline to track your liability throughout the year
• Switching bank accounts is not practical

The honest comparison

Three scenarios cover most sole traders:

If you bank with NatWest, RBS, Ulster Bank, or Mettle: Use FreeAgent free. There is no better option at any price point for most UK sole traders.

If you want the cheapest full-featured paid tool: QuickBooks Sole Trader at £10/month. Includes everything a sole trader needs — MTD, Self Assessment, bank feeds, mileage, mobile.

If your accountant uses Xero or you want strong integrations: Xero Ignite at £16/month.

The expensive tiers from any provider add features most sole traders will never use. Match the tool to your actual needs, not the feature list.

For a deeper look at each option, see our individual reviews: FreeAgent, QuickBooks, Xero, and Sage. Or use the Software Chooser to get a recommendation based on your specific situation.