The best apps for self-employed tax in the UK (2026)

What to look for in an MTD app

With MTD for Income Tax now live, you need software that can do more than just organise your receipts. Here's what matters:

• MTD ITSA recognition — mandatory for quarterly submissions from April 2026
• Bank feeds or open banking — automatic transaction import saves significant time
• Expense categorisation — ideally AI-powered, mapped to HMRC's categories
• Direct HMRC submission — quarterly updates and Final Declaration filed from within the app
• Mobile app — for recording expenses on the go
• Price — sole traders don't need enterprise accounting features, so pricing should reflect that

Bart — built for sole traders

Bart is purpose-built for UK sole traders under MTD. Unlike general accounting platforms designed for businesses with employees and complex finances, Bart focuses on exactly what a sole trader needs:

• Open banking via Finexer (FCA regulated) — transactions imported automatically, read-only access
• AI categorisation using Anthropic Claude — expenses sorted into HMRC's categories automatically
• Review and approve your transactions in minutes each month
• Quarterly submissions and Final Declaration filed directly to HMRC
• Available on iOS, Android, and web
• Simple monthly pricing — designed for one-person businesses

Best for: Sole traders who want the simplest possible MTD experience with minimal manual input.

QuickBooks Self-Employed

QuickBooks is one of the most widely used accounting platforms in the world, and its Self-Employed tier is designed for freelancers and sole traders. It includes bank feeds, mileage tracking, invoice creation, and MTD for Income Tax support.

• Bank feed integration and automatic transaction categorisation
• Mileage tracking via mobile
• Invoicing built in
• MTD ITSA submission support

More features than most sole traders need — but solid and well-supported.

Best for: Sole traders who also need invoicing or who are already familiar with QuickBooks.

FreeAgent

FreeAgent is a UK-focused accounting package that's been MTD-ready since the VAT rollout. It offers full double-entry bookkeeping, payroll support, and MTD for Income Tax.

• Comprehensive accounting features
• Bank feed import
• MTD ITSA submission
• Often free with NatWest, RBS, or Mettle business bank accounts

Best for: Freelancers who want more detailed accounting, or those banking with NatWest/Mettle who can get it free.

Xero

Xero is comprehensive cloud accounting software designed for growing businesses. It's powerful, well-supported, and MTD-compatible — but it's designed for businesses that may have employees, multiple bank accounts, and complex reporting needs.

• Bank feeds and strong third-party app ecosystem
• Payroll support
• MTD ITSA support (check your plan)
• More expensive and complex than most sole traders need

Best for: Growing businesses considering taking on staff, or those already in the Xero ecosystem.

Spreadsheet + bridging software

If you already keep your books in a spreadsheet and don't want to change your workflow, a bridging tool can submit your data to HMRC in the correct format. Options include DataDear and various Excel-based MTD solutions.

• Works with existing spreadsheet setup
• Requires careful maintenance of the digital link between spreadsheet and bridging tool
• More error-prone than an integrated solution
• May have a learning curve for the bridging tool

Best for: Those very comfortable with spreadsheets who want minimal change and understand the compliance requirements.

What about free options?

HMRC does not provide free MTD software — you must use a third-party tool. That said, free or heavily discounted options do exist:

• FreeAgent — free with NatWest, RBS, or Mettle business accounts
• Bart — free trial available, no card required
• Some banks bundle accounting software as part of their business account offering

Our recommendation

For the vast majority of sole traders, the best choice comes down to what you need:

• For lowest friction and simplest MTD: Bart — purpose-built for the job, minimal setup, AI categorisation
• For invoicing alongside tax: QuickBooks Self-Employed or FreeAgent
• For NatWest/Mettle customers: FreeAgent (free with your account)
• For complex or growing businesses: Xero

The most important thing is to choose something and get set up before 6 April 2026. Using non-compliant software — or no software at all — after that date risks penalty points.

Frequently asked questions