MTD for Income Tax is mandatory from April 2026

The simplest Making Tax Digital software for sole traders and landlords.

Free until April 2027.

Just MTD - no banking, no VAT, no full accounting suite to learn. Submit your quarterly updates in minutes - type your numbers in directly or import a spreadsheet. Completely free for the 2026-27 tax year. Just £19.99/year from April 2027.

The Problem

MTD is coming. Most software is built for businesses far bigger than yours.

From April 2026, sole traders and landlords earning over £50,000 must keep digital records and file quarterly updates with HMRC. That means you need compatible software. Most options bundle in banking, VAT, payroll and full accounting - features built for bigger businesses that you'll never use. AffordableMTD does one job: get your quarterly updates and final declaration filed, simply. It's completely free for the entire first tax year.

What competitors charge

£144–£288/year

Xero, FreeAgent, Sage, QuickBooks

What AffordableMTD charges

£0/first year

Completely free for 2026-27. All features, all income types, no catches. £19.99/year from April 2027.

How It Works

Three steps. That's it.

Type your numbers in or import a spreadsheet. We handle the HMRC part.

Connect to HMRC

Securely link your HMRC account with one click. We use the same official Government Gateway login you already have.

Enter your figures

Type your income and expenses in directly, or upload a spreadsheet or CSV. Our AI automatically categorises your transactions into the right HMRC categories and is never used to train AI models. You review and confirm before anything is submitted.

Submit to HMRC

Check the summary, click submit. Your quarterly update is filed. You'll see a confirmation with a timestamp and reference.

Pricing

See how we compare.

Real prices - what you actually pay. Competitors' prices shown including VAT where applicable.

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Free for the entire 2026-27 tax year

Every feature. Every income type. No catches, no limits. Use AffordableMTD completely free until 6 April 2027. From the 2027-28 tax year, it's just £19.99/year.

Software	2026-27	2027-28 onwards	What you get	Catch
AffordableMTD	FREE	£19.99/yr	Submit + Smart AI	No catch. Free year one, simplest MTD.
123 Sheets	£11.70 inc. VAT	£23.40	Submit only	No AI, no record-keeping
VitalTax	£36.00 inc. VAT	£36.00	Submit only	Basic Excel add-in only
Coconut (MTD)	£108.00	£108.00	Full accounting	Free only with Zempler bank
Sage Start	£144.00	£144.00	Full accounting	Free tier: self-employment only, no property
Xero Starter	£180.00	£180.00	Full accounting	Overkill for quarterly submissions
FreeAgent	£288.00	£288.00	Full accounting	Free only with NatWest/RBS account

Why AffordableMTD

Everything you need. Nothing you don't.

Built specifically for MTD compliance. No invoicing, no payroll, no project management - just the tax bit, done properly.

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Just MTD. Nothing else.

No bank feeds, no VAT, no invoicing, no payroll, no full accounting suite to learn. We do one job - quarterly updates and your final declaration - so there's less to figure out and nothing extra to pay for.

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Submit in minutes, not hours

Type your totals in directly or import a spreadsheet. Either way, you're done in minutes - not wrestling with accounting software you don't need.

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Stop guessing which HMRC category to use

AI analyses your transactions and sorts them into the right expense categories automatically. Your financial data is never shared with third parties or used for AI training. You just review and confirm.

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Never miss a deadline

See exactly which quarterly updates are due, what's been submitted, and what's coming up. No guesswork, no calendar reminders needed.

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One tool for all your income types

Self-employment and UK property income handled together. No need for two products, no extra charges, no bank account requirement. Foreign property income is on the roadmap.

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HMRC-recognised

Your submissions reach HMRC through the same secure, official connection used by Xero, Sage, and every other recognised provider - at a fraction of the price. See our listing on GOV.UK →

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Claim expenses you're probably missing

AI checks your data privately for deductions you might have overlooked. For example, HMRC allows £6/week for working from home - that's £312/year off your taxable income, and most sole traders never claim it.

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Catch mistakes before HMRC does

AI reviews your figures before you submit - flagging errors, unusual amounts, and missing categories that could attract HMRC attention.

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Audit-ready records from day one

Every quarterly update logged with timestamps, references, and source data. If HMRC ever asks questions, your trail is already there.

Frequently Asked Questions

Common questions about MTD for Income Tax.

If you're a sole trader or landlord with annual income over £50,000, yes - from 6 April 2026 you must keep digital records and submit quarterly updates to HMRC using compatible software. The threshold drops to £30,000 from April 2027. This replaces the annual Self Assessment tax return. AffordableMTD is completely free for the 2026-27 tax year, so there's no reason not to get set up now.

Yes. AffordableMTD is completely free for the entire 2026-27 tax year (6 April 2026 to 5 April 2027). All features, all income types, CSV import, AI categorisation - everything. From the 2027-28 tax year onwards, it's £19.99/year. We want you to try it risk-free before we ask for a penny.

Bridging software connects your existing records to HMRC's systems. You keep doing your bookkeeping however you like - spreadsheets, paper records, bank statements - and the software handles the digital submission. You can type your figures in directly or import a file. It's the simplest and most affordable type of MTD-compatible software.

Absolutely - that's exactly what bridging software is for. You maintain your records however you like. When it's time to file, either type your totals in directly or upload your spreadsheet. No need to change how you work.

For the standard tax year, you submit cumulative updates by: 7 August (Q1), 7 November (Q2), 7 February (Q3), and 7 May (Q4). The first deadline for the 2026-27 tax year is 7 August 2026. There's a soft landing - no penalty points for late quarterly updates in the first year.

Not with AffordableMTD. Both self-employment and UK property income are supported as standard. Some competitors only handle one type, or charge extra for property. We cover both from day one. Foreign property income is on the roadmap.

Yes. AffordableMTD is live and HMRC-recognised. You can sign up and start using it for free right now, ahead of the first quarterly deadline on 7 August. The entire 2026-27 tax year is free.

Your connection to HMRC uses the official Government Gateway login - we never see your password. All data is encrypted and transmitted securely. Your financial information is never shared with third parties. We follow HMRC's security requirements and GDPR.