If you are a UK freelancer trying to understand Making Tax Digital, the first thing to know is that you are a sole trader for tax purposes. That means the tools that work best for you are the ones designed for simple self-employment income, not full-blown accounting software.
This guide covers the best MTD software options for freelancers in 2026, based on the most common freelance workflows: irregular income, expense claims, occasional invoicing, and quarterly HMRC submissions.
What Freelancers Actually Need From MTD Software
Most freelancers need:
- A way to record project income as it comes in
- A way to record work-related expenses
- A running estimate of their tax liability
- Quarterly submission to HMRC when the deadline arrives
- Something they will actually use every week
What most freelancers do not need:
- Payroll
- Double-entry bookkeeping
- Stock control
- Multi-entity or multi-user accounting
- A tool designed for businesses with staff
The best MTD software for a freelancer is the one that handles the five requirements above, stays out of the way, and costs as little as possible.
The Best Options in 2026
1. Cuppa (Free or £4.50/month)
Best for: Freelancers who want the simplest possible MTD-compliant workflow at the lowest cost.
Cuppa is designed specifically for UK sole traders. The free plan includes everything a freelancer needs: record income and expenses, see a live tax estimate, and submit quarterly to HMRC. The Pro plan (£4.50/month or £45/year) adds invoicing, bank integration, amendment support, and AI assistant access.
What works well for freelancers:
- No minimum transaction volume or ledger limits on the free plan
- Live tax estimate updates as you record, so you always know roughly what you owe
- Mileage and home office tracking included in the free plan
- CSV export for your accountant
- Invoice creation on Pro
- 14-day free trial on Pro
What to be aware of:
- Web-based only (no mobile app)
- No receipt scanning
- Does not cover landlord or mixed income
Start free on Cuppa | Compare Cuppa vs Coconut | Compare Cuppa vs Untied
2. Coconut (£21.99/month inc VAT for MTD)
Best for: Freelancers who want invoicing, expense tracking, and MTD in one mobile-first app.
Coconut is a well-established self-employed accounting app with strong invoicing features, receipt scanning, and MTD support. MTD quarterly submissions require the +MTD plan (£21.99/month inc VAT or £129.99/year inc VAT). An entry Essentials plan exists at £16.99/month, but it does not include MTD quarterly submissions.
What works well for freelancers:
- Invoicing with payment tracking and branded templates
- Receipt scanning via mobile app
- Bank connections (30+ UK providers)
- CIS subcontractor support
- 14-day free trial
What to be aware of:
- More expensive than sole-trader-first alternatives
- MTD quarterly submissions not included on the entry plan
Coconut website | Compare Cuppa vs Coconut
3. Untied (£129.99/year)
Best for: Freelancers with multiple income sources (self-employment, rental, PAYE) who want everything in one place.
Untied is designed for mixed-income users as much as for pure sole traders. If your freelance income sits alongside rental income, employment income, or both, Untied handles all of those in one platform. For freelancers with a straightforward sole-trader setup, it is more expensive than necessary.
What works well for freelancers:
- Covers multiple income types in one tool
- 30-day free trial
- Mobile app (iOS and Android)
- Unlimited bank connections
What to be aware of:
- £129.99/year is more expensive than Cuppa for equivalent MTD functionality
- No free tier
Untied website | Compare Cuppa vs Untied
4. QuickFile (Free for small accounts)
Best for: Freelancers who want full bookkeeping features including invoicing and VAT, and expect low transaction volumes.
QuickFile is free for accounts under 1,000 nominal ledger entries per year. That covers most freelancers with a modest client list. It has more traditional bookkeeping features (nominal codes, double-entry structure) which some freelancers find valuable and others find unnecessarily complex.
What works well for freelancers:
- Free for most freelancers (low ledger volume)
- Full invoicing with payment integrations
- Bank feeds (50+ UK banks)
- VAT return filing
- MTD ITSA support
What to be aware of:
- Traditional accounting concepts (nominal codes) require some learning
- Goes paid above 1,000 ledger entries/year
QuickFile website | Compare Cuppa vs QuickFile
5. Taxd (from £35 per filing, inc VAT)
Best for: Freelancers who want expert human support when filing and do not want a monthly subscription.
Taxd is a digital accountant service: you file when you need to and pay per return (from £35 inc VAT for a personal tax return). Expert support via live chat is included. It is not a day-to-day bookkeeping workflow tool but works well for freelancers who prefer to handle records themselves and pay for filing help.
What works well for freelancers:
- No monthly subscription
- Live chat with tax specialists
- 4.9 Trustpilot, 20,000+ clients
- Covers complex cases (residency, partnerships, Ltd)
What to be aware of:
- Per-filing cost can add up across quarterly submissions
- Not designed as a weekly record-keeping workflow
Taxd website | Compare Cuppa vs Taxd
Side-by-Side Comparison
| Tool | Free plan | Paid plan | MTD submissions | Invoicing | Mobile app | Best for |
|---|---|---|---|---|---|---|
| Cuppa | Yes (£0) | £4.50/month or £45/year | Yes (free) | Yes (Pro) | No (web) | Simple, low-cost sole-trader MTD |
| Coconut | No | £21.99/month inc VAT (+MTD plan) | +MTD plan only | Yes | Yes | Invoicing + MTD in one mobile app |
| Untied | No | £129.99/year | Yes | No | Yes | Mixed income, multiple sources |
| QuickFile | Yes (ledger limit) | Paid above 1,000 entries | Yes | Yes | Partial | Full bookkeeping at no cost |
| Taxd | Free to try | From £35/filing inc VAT | Yes | No | No | Expert support, pay per filing |
Which Should a Freelancer Choose?
Choose Cuppa if:
- You want the cleanest, cheapest MTD workflow with a live tax estimate
- Your freelance income is sole-trader self-employment only
- You do not need a mobile-first invoicing experience
Choose Coconut if:
- You want invoicing and bookkeeping in one polished mobile app
- You are comfortable paying £21.99/month (the MTD-inclusive +MTD plan) for that convenience
Choose Untied if:
- You have rental or employment income alongside your freelance work
- You want a single platform for all income types
Choose QuickFile if:
- You want free bookkeeping with full invoicing and VAT support
- You are comfortable learning traditional bookkeeping concepts
Choose Taxd if:
- You want to pay only when you file
- You want expert support available when it matters
The Most Common Freelance Question: Do I Need MTD Software Yet?
MTD for Income Tax becomes mandatory for sole traders and landlords with qualifying income over £50,000 from April 2026 and over £30,000 from April 2027.
If your freelance income is currently below those thresholds, you are not yet required to file quarterly. But:
- Building compliant habits before the deadline is easier than scrambling at the last minute
- Several of these tools are free, so there is no cost reason to wait
- Your income may cross the threshold as your freelance work grows
There is no downside to starting now with a free plan.
MTD Deadlines for Freelancers
| Income threshold | Mandatory from |
|---|---|
| £50,000+ qualifying income | April 2026 |
| £30,000+ qualifying income | April 2027 |
| £20,000+ qualifying income | April 2028 (proposed) |
Source: HMRC Making Tax Digital for Income Tax timeline.
Related guides:
- Making Tax Digital for Income Tax: complete guide for sole traders
- Free MTD software for UK sole traders: what is actually free?
- HMRC-recognised MTD software explained
- How to record income and expenses for HMRC
- Freelance accounting guide for UK sole traders
Last reviewed: 6 March 2026. Pricing verified against published information at that date.