Choosing the right software is one of the most important steps in preparing for Making Tax Digital for ITSA. With several providers now offering MTD-ready features, here’s a breakdown of the best tools for 2025.
1. Xero
A powerful accounting platform perfect for growing businesses.
Best for: VAT-registered businesses, larger sole traders.
2. QuickBooks Online
User-friendly interface with excellent automation features.
Best for: Small to medium-sized businesses.
3. FreeAgent
Free for certain bank customers (including NatWest-group business accounts).
Best for: Freelancers and contractors.
4. Sage Accounting
Reliable and traditional, great support network.
Best for: Those who prefer a structured accounting system.
5. Coconut
Designed specifically for self-employed individuals.
Best for: Sole traders and small landlords needing simplicity.
What to Look For
- HMRC MTD ITSA integration
- Easy receipt capture
- Automated bank feeds
- Quarterly update support
- Affordable pricing
- Accountant access
Choosing the right tool now will make your transition to MTD seamless.