With Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) going live in April 2026, picking the right software could mean the difference between chaos and confidence.
Whether you’re a landlord managing multiple properties or a sole trader on the move, the right digital tool ensures you stay compliant while saving time and stress.
At Nuvo Accountancy, we’re already helping clients test and transition – so here’s our expert take on the best MTD software in the UK.
Best MTD Software for Landlords & Sole Traders
1. FreeAgent – Best for Landlords
Claire, our Head of Digital Transformation, recommends FreeAgent for landlords.
Why?
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Property-Specific Setup → Assign income/expenses to each property and track profitability.
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Bank Integration → Links with Mettle, NatWest, and RBS (sometimes free via your bank).
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MTD-Ready → Fully compliant with HMRC digital recordkeeping and submissions.
“With FreeAgent, landlords can easily manage property portfolios and stay MTD compliant without the faff.”
2. Xero Simple Start – Best for Sole Traders
(H3 with keyword variation)
For sole traders, Xero Simple Start is a streamlined and powerful option.
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Bank Feeds → Automatically imports transactions.
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Digital Invoice Management → Upload receipts and keep everything in one place.
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Tax Reporting Tools → Track deductible expenses and reduce errors.
“Sole traders using Xero stay organised, compliant, and reclaim more deductions.”
MTD Feature Comparison: FreeAgent vs Xero
| Feature | FreeAgent | Xero Simple Start |
|---|---|---|
| Property income tracking | ✅ Yes | ❌ No |
| Free with business account | ✅ Mettle/NatWest | ❌ No |
| Bank feed sync | ✅ Yes | ✅ Yes |
| Quarterly submission support | ✅ Yes | ✅ Yes |
| Document storage | ✅ Yes | ✅ Yes |
Pricing Snapshot (2025)
| Software | Monthly Cost | Free Option? |
|---|---|---|
| FreeAgent | £14.50+ VAT | ✅ Free with Mettle/NatWest |
| Xero Simple Start | From £15+ VAT | ❌ Paid license only |
💡 Tip: If you bank with Mettle, you could save £174+ per year by using FreeAgent for free.
When to Start Using MTD Software
Don’t wait until April 2026. Start during the 2024–25 tax year as a test run.
This gives you time to:
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Master the software
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Get your accountant involved
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Avoid last-minute panic
Are There Free MTD Tools?
There are basic free MTD apps, but most lack support and key features (like property tracking or receipt uploads).
For landlords and sole traders, FreeAgent or Xero offer the best balance of reliability, features, and long-term value.
Final Verdict: Best MTD Software in the UK
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Landlords → FreeAgent for property features and potential free access.
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Sole Traders → Xero Simple Start for simplicity and digital-first design.
Need help choosing or setting up MTD software? Speak to Nuvo Accountancy today and let our team guide you through compliance with confidence.
Ready to Get Ahead of MTD 2026?
Don’t wait until the deadlines hit. Whether you’re a sole trader or landlord, we can help you choose the right software, set up quarterly reporting, and build a stress-free routine that keeps you compliant.
👉 Book a free discovery call to start preparing today.
