MTD compatible software for tradespeople: the best options in 2026

Making Tax Digital for Income Tax (MTD IT) arrives in April 2026 for self-employed people earning over £50,000. It means keeping digital records and sending quarterly summaries to HMRC — and you will need software to do it. Paper records and manually typed spreadsheets will not cut it.

This guide looks at what MTD software needs to do for tradespeople, what to look for when choosing, and the best options available right now.

What MTD for Income Tax requires

Under MTD IT, if you are self-employed or a landlord earning over £50,000, from 6 April 2026 you must:

• Keep digital records of all income and expenses
• Submit quarterly updates to HMRC (four per year, within one month of each quarter end)
• Submit an End of Period Statement (EOPS) confirming the year's figures
• Submit a Final Declaration (replacing the annual self-assessment return) to settle your tax bill

The quarterly updates are summaries, not full returns. They do not need to match your final numbers exactly — you can adjust them in the EOPS. But you must submit them on time or face penalties.

From April 2027, the threshold drops to £30,000. From April 2028, it extends to income over £20,000.

What good MTD software looks like for a tradesperson

Not all MTD software is designed with tradespeople in mind. Accountant-facing software can be overly complex for someone who wants to log a receipt between jobs on their phone. Here is what actually matters:

HMRC recognition

Only use software that appears on HMRC's official list of MTD for Income Tax compatible software. This guarantees the quarterly submission functionality works correctly and that HMRC will accept your returns.

Mobile-first design

Signal is unreliable on many job sites. Software that works offline and syncs when you reconnect is far more practical than browser-only tools. An app that lets you snap a receipt photo and log it in 30 seconds will actually get used. One that requires a desktop login will not.

Invoicing built in

For tradespeople, invoicing and record keeping are the same workflow. Software that combines invoicing, expense tracking, and MTD submissions in one app avoids the need to export data between different systems. Most accountant platforms treat invoicing as an add-on; most tradesperson-focused tools treat it as the core.

VAT support

Many tradespeople are VAT-registered. Your MTD software should handle VAT calculations, CIS deductions, and the domestic reverse charge correctly, and ideally also support MTD for VAT if you are not already compliant on that front.

CIS support

If you work in construction and have CIS deductions taken from your payments, your software should handle CIS subcontractor records and reconcile deductions against your tax return automatically.

MTD software options for UK tradespeople

InvoiceAdept

Built specifically for UK sole traders and tradespeople, InvoiceAdept combines invoicing, expense tracking, CIS management, and MTD quarterly submissions in a single mobile app. It handles VAT, the domestic reverse charge, and automatically prepares your quarterly updates. No accounting background required. Free plan available for lower volume users.

QuickBooks Self-Employed / QuickBooks Sole Trader

QuickBooks has a mobile app with good receipt capture and mileage tracking. The MTD for Income Tax module is available on higher-tier plans. Best for tradespeople who already use QuickBooks for bookkeeping and want to stay in one ecosystem. Starts at around £10/month.

FreeAgent

Popular with freelancers and sole traders. Strong MTD support, clean interface, and good mobile app. FreeAgent is free if you bank with NatWest, Royal Bank of Scotland, or Ulster Bank. Otherwise around £19/month for sole traders.

Xero

Xero is the market leader for small business accounting in the UK. MTD for Income Tax is built in. It is more feature-rich than most tradespeople need, and the mobile app is less polished than some competitors. Prices start at £16/month but MTD IT functionality requires higher plans.

Sole Cloud

A newer MTD-focused platform designed specifically for sole traders. Simpler than Xero or QuickBooks, with a clear quarterly submission workflow. Worth considering if you want a lightweight tool that does MTD IT and not much else.

Spreadsheets with bridging software

If you keep your records in Excel or Google Sheets, you can use "bridging software" to send the data to HMRC in an MTD-compliant format. This is technically permitted but adds an extra step and is only viable if your spreadsheet is well-maintained. It is not a long-term solution for most tradespeople.

How to choose

For most tradespeople, the right choice is software that:

1. Is on HMRC's approved list
2. Has a mobile app that works offline
3. Includes invoicing so you are not managing two systems
4. Handles CIS and VAT correctly for your trade type
5. Costs less than what it saves you in accountant fees

Start a free trial with two or three options before the April 2026 deadline. It is much less stressful to choose software in advance and get familiar with it than to scramble in the first week of April.

When do you need to start?

If your income exceeds £50,000 in the 2025/26 tax year (ending 5 April 2026), MTD IT applies from 6 April 2026. Your first quarterly update will cover April to June 2026, due by 5 August 2026. You need to have your software set up and connected to HMRC before then.

HMRC will write to businesses that should be in MTD IT, but do not rely on receiving a letter — check your own income position and register voluntarily if you qualify.

Useful resources

Our guide on Making Tax Digital for sole traders in 2026 covers the full MTD IT process from start to finish. Our self-assessment calculator can help you estimate whether your income will cross the £50,000 threshold this year.