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Cheapest MTD software options compared

There’s a real spread in what MTD-compliant software costs, from a couple of pounds a month to well over £50. Here’s roughly where things sit, and what you’re actually paying for at each price point. Prices below are approximate as of when this was written and change often, always check the provider’s current pricing before deciding.

Budget bridging software (spreadsheet + submission only)

These connect an existing spreadsheet to HMRC without doing any categorisation or dashboard work for you:

  • Cheapest bridging tools: roughly £30–£50/year
  • Mid-range bridging tools: roughly £75–£90/year

You’re paying purely for the “send this to HMRC” step. You still categorise, total, and check everything yourself in your spreadsheet.

Full accounting software (Xero, QuickBooks, FreeAgent)

These are complete bookkeeping platforms that happen to also be MTD-compliant, built for businesses that want invoicing, payroll, bank feeds, and much more beyond just an MTD update:

  • Entry-level plans: roughly £16–£20/month (£190–£240/year)
  • Mid-range plans: roughly £33–£50/month
  • Some providers offer free or discounted access via specific business bank accounts

The catch: you’re paying for a lot of functionality (invoicing, multi-currency, inventory) that a landlord or sole trader filing quarterly updates usually doesn’t need at all.

Where Simple MTD sits

Simple MTD is £79/year for landlords and £99/year for sole traders, more than the cheapest bridging tools, less than full accounting software. What you get for that gap:

  • Automatic category suggestions (not just a spreadsheet template)
  • A plain-English “ready to submit” view before anything goes to HMRC
  • Nothing to learn beyond adding your income and expenses

How to actually choose

  • Already have a spreadsheet system you like and just need submission? A bridging tool is genuinely the cheapest option.
  • Want invoicing, payroll, or multi-user features too? Full accounting software may be worth the extra cost regardless of MTD.
  • Just want quarterly updates handled with minimal setup? That’s the gap Simple MTD is built for.

See full pricing or check whether you’re even in scope yet with the free scope checker.

Common questions

Is the cheapest option always bridging software?

Usually, yes, in pure subscription cost, but bridging software still leaves you doing your own categorisation and record-keeping in a spreadsheet. Whether that's actually 'cheaper' depends on how much your own time is worth to you.

Do prices ever change?

Yes, regularly. Treat the figures here as a starting point for research, not a guaranteed current price, and check each provider's own site before deciding.