Which Making Tax Digital Software Should I Use?

The honest answer: Any HMRC-approved software will work. But some are better than others depending on what you do.

FreeAgent

Best for: UK freelancers and sole traders who want the most hand-holding.

  • Cost: From £8.33/month (paid annually) — free with NatWest/RBS
  • Pros: UK tax calendar built in, simple interface, great for beginners
  • Cons: Less powerful if your affairs get complicated

Xero

Best for: Freelancers with multiple income streams, landlords, people who like clean interfaces.

  • Cost: From £30/month
  • Pros: Very intuitive, handles multiple business types, great mobile app
  • Cons: More expensive, overkill for simple freelancers

QuickBooks

Best for: Freelancers who want powerful features at a mid-range price.

  • Cost: From £22/month
  • Pros: Powerful, good mobile app, mileage tracking built in
  • Cons: Interface takes getting used to

Wave

Best for: Absolute beginners who want to spend nothing upfront.

  • Cost: Free
  • Pros: Genuinely free accounting software, good invoicing
  • Cons: Fewer features, less UK-specific support