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Is Making Tax Digital software free?
Short answer
Some is. HMRC says free products are available for people with simple tax affairs, though they may have limits such as a cap on transactions. Use HMRC's software finder to filter by your income type. You do need software for Making Tax Digital: either a full bookkeeping app or bridging software that connects your spreadsheet to HMRC.
Your options
| Type | Cost | Good for |
|---|---|---|
| Free MTD software (some banks and providers) | £0, with limits | Simple sole traders and landlords |
| Bookkeeping app (Xero, QuickBooks, FreeAgent, Sage and others) | Monthly fee | Invoicing, bank feeds, receipt capture |
| Bridging software | Free or low cost | Keeping your spreadsheet and submitting from it |
See how much is Xero in the UK? for one example of paid pricing.
How to choose
- Use HMRC's finder and tick your income sources.
- Check the free plan's limits.
- Check it can send quarterly updates and your final return.
- Look for receipt scanning and bank feeds if you want AI to save time.
HMRC doesn't recommend any provider.
Which is the best MTD software?
The best one is the one that fits your income sources, your bank and how you like to work. Your accountant may prefer a particular product.
Related questions
Do I need software for Making Tax Digital?
Yes, compatible software is required. See what is Making Tax Digital for Income Tax?
What is bridging software?
Software that links your spreadsheet records to HMRC so you can submit from them.
Sources
- GOV.UK: choose the right software for MTD for Income Tax
- GOV.UK: find software that works with MTD for Income Tax
Checked 17 October 2026. Rules and prices change, so check the source before you rely on it. This is general information, not legal, tax or financial advice.
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