Making Tax Digital for Income Tax (MTD ITSA) is changing how sole traders, landlords, and side hustlers report to HMRC — and you’ll want software that simplifies the shift.
While our top pick is still FreeAgent, Xero remains a strong contender: elegant, intuitive, and fully MTD-ready. Here’s how it stacks up.
Be sure to head over to our Making Tax Digital hub, full of guides, software reviews, important dates and more.
🎯 Xero – Simple, Polished, and MTD-Ready
Already using Xero or a fan of slick, modern interfaces? Xero fits the bill.
Here’s why we like it:
- ✅ Intuitive, clean dashboard
- ✅ Excellent mobile experience
- ✅ Built-in MTD ITSA support
- ✅ Tracks expenses, sends invoices, connects your bank
- ✅ Scales well for growing businesses or property landlords
- ✅ Trusted by accountants and bookkeepers
Yes — it’s genuinely a very solid MTD tool.
💷 Simple Plan: £7/month
Xero’s new Simple plan, aimed at sole traders and landlords, starts at just £7/month.
It includes:
- Up to 10 invoices or quotes per month
- Bank feeds and reconciliations
- Receipt capture (via Hubdoc)
- MTD for Income Tax compatibility
- CIS features for contractors
- Short-term cashflow insights
💡Need to send more invoices? You’ll need to upgrade to a higher plan — which means a jump in cost. So if you’re invoicing regularly, it’s worth checking what tier you’ll realistically need.
Check the latest pricing here.
🎥 Watch: Our Xero MTD Walkthrough
We’ve put together a short, jargon-free video showing how to connect your bank, record transactions, and submit MTD updates using Xero.
Whether you’re doing it yourself or letting us handle submissions for you, this gives you a clear idea of how simple it can be.
🆚 Also see our FreeAgent walkthrough and review for comparison — it’s another brilliant MTD option, and free for many users.
🧠 Already Using Xero?
No need to switch. We can fine-tune your setup for MTD, ensure digital records are compliant, and guide you through your first submission — smoothly and confidently.
📞 What Next?
Here’s how we can support your MTD journey with Xero:
➡️ See if FreeAgent might actually be free for you
If you bank with NatWest, RBS, Ulster Bank, or Mettle, you could be eligible for free access to FreeAgent, our preferred MTD solution.
You can check here.
➡️ Need help reviewing your Xero setup for MTD?
We’ll make sure it’s configured correctly and running smoothly for quarterly updates and final returns.
➡️ Watch our FreeAgent walkthrough and review
If you’re weighing up your options, this is a great place to start.
