If you are a UK tradesperson working as a sole trader, Making Tax Digital for Income Tax applies to you in the same way as any other self-employed person. The tools you need are the same: digital records, quarterly HMRC submissions, and a final declaration at year-end.
What differs for tradespeople is the workflow. Income tends to come in larger, irregular payments from fewer clients. Expenses often include materials, vehicle costs, tools, protective equipment, and fuel. CIS deductions may apply if you work for contractors.
This guide covers the best MTD software options for tradespeople in 2026, with notes on what matters specifically for trades-led workflows.
What Tradespeople Actually Need From MTD Software
Most tradespeople need:
- Record project income (jobs, contracts, or invoices paid)
- Record work-related expenses (materials, tools, fuel, van, PPE)
- Mileage tracking for business travel
- Quarterly HMRC submissions
- A running tax estimate so they can set money aside correctly
Nice to have for many tradespeople:
- Basic invoicing (to send to clients)
- CIS deduction tracking (if working as a subcontractor under CIS)
- Receipt storage
What most tradespeople do not need:
- Payroll (unless they employ staff)
- VAT returns (unless VAT-registered)
- Inventory or stock control
- Double-entry bookkeeping
- Complex project accounting
The Best Options for Tradespeople in 2026
1. Cuppa (Free or £4.50/month)
Best for: Sole-trader tradespeople who want the simplest MTD-compliant workflow at the lowest cost.
Cuppa is built for UK sole traders with straightforward income and expenses. For tradespeople, this means recording job payments as income, claiming materials and fuel as expenses, and logging business mileage. The free plan includes all of this, plus HMRC quarterly submissions, at no cost.
What works well for tradespeople:
- Mileage tracking built into the free plan (HMRC-approved rates)
- Home office tracking if you work from home
- Bank imports to reduce manual entry
- Simple expense categories for tools, fuel, materials
- Pro plan adds invoice creation for client billing
- 14-day free trial on Pro
What to be aware of:
- No CIS subcontractor support
- No receipt scanning
- Web-based only
2. Coconut (£21.99/month inc VAT for MTD)
Best for: Tradespeople who want invoicing, expenses, and receipt scanning in one mobile app, and who may be working under CIS.
Coconut is one of the few tools that explicitly supports CIS subcontractors. If you work under CIS and need to track deductions, Coconut handles that as part of its broader self-employed accounting platform. MTD quarterly submissions require the +MTD plan (£21.99/month inc VAT); an entry Essentials plan exists at £16.99/month but does not include MTD submissions.
What works well for tradespeople:
- CIS subcontractor support
- Receipt scanning via mobile
- Invoicing with payment tracking
- Bank connections (30+ UK providers)
What to be aware of:
- MTD quarterly submissions require the +MTD plan (£21.99/month inc VAT)
- More expensive than Cuppa for basic MTD compliance
Coconut website | Compare Cuppa vs Coconut
3. QuickFile (Free for small accounts)
Best for: Tradespeople who want free full-featured bookkeeping including invoicing, VAT, and bank feeds.
QuickFile is free for accounts with under 1,000 nominal ledger entries per year. For a sole-trader tradesperson with a limited number of transactions, that limit is unlikely to be reached. It covers invoicing, bank feeds, VAT returns, and MTD ITSA.
What works well for tradespeople:
- Free invoicing with multiple payment options
- Bank feeds (50+ UK banks)
- VAT return filing (for VAT-registered tradespeople)
- MTD ITSA support
What to be aware of:
- Traditional bookkeeping concepts (nominal codes) require learning
- Goes paid above 1,000 ledger entries per year
QuickFile website | Compare Cuppa vs QuickFile
4. Invoice Guru (pricing varies)
Best for: Tradespeople who prioritise mobile-first invoicing alongside MTD compliance.
Invoice Guru is specifically positioned for tradespeople with MTD-compliant invoicing as the core feature. It is designed for mobile use, suited to sole traders who need to send invoices from the job site.
What to be aware of:
- More narrowly focused on invoicing than full bookkeeping
- Check current pricing and feature set before committing
5. KashFlow (from £12.50/month + VAT)
Best for: Tradespeople whose business has grown to include employees and who need payroll alongside bookkeeping and MTD.
KashFlow includes payroll (up to 5 employees on Starter), unlimited contacts, VAT returns, and a mobile app. For a sole-trader tradesperson who has taken on staff, it has more room to grow than simpler sole-trader tools.
What works well for tradespeople:
- Payroll included (up to 5 employees)
- Mileage tracking
- VAT return filing
- Mobile app
What to be aware of:
- Starter plan limits invoices to 10/month and bank reconciliations to 25/month
- More expensive than Cuppa for basic sole-trader use
KashFlow website | Compare Cuppa vs KashFlow
Side-by-Side Comparison for Tradespeople
| Tool | Free plan | Paid plan | MTD submissions | CIS support | Invoicing | Mileage | Best for |
|---|---|---|---|---|---|---|---|
| Cuppa | Yes (£0) | £4.50/month or £45/year | Yes (free) | No | Yes (Pro) | Yes (free) | Simple, cheap MTD for sole traders |
| Coconut | No | £21.99/month inc VAT (+MTD plan) | +MTD plan | Yes | Yes | Yes | CIS subcontractors, mobile invoicing |
| QuickFile | Yes (ledger limit) | Paid above 1,000 entries | Yes | No | Yes | No | Free full bookkeeping, VAT |
| Invoice Guru | Check site | Check site | Yes | Check site | Yes | Check site | Mobile invoicing for tradespeople |
| KashFlow | No | From £12.50/month + VAT | Yes | No | Yes | Yes | Tradespeople with employees |
Mileage and Vehicle Costs for Tradespeople
Vehicle costs are one of the biggest expense categories for most tradespeople. HMRC allows two methods:
Simplified mileage method:
- Claim 45p per mile for the first 10,000 miles, 25p per mile after that
- Log every business trip with date, destination, and miles
- Cuppa includes mileage tracking at HMRC-approved rates in the free plan
Actual costs method:
- Claim the proportion of actual running costs (fuel, insurance, repairs) that relates to business use
- More complex to calculate but can result in a higher claim for high-mileage vehicles
Most sole-trader tradespeople use the simplified mileage method because it is easier to maintain. If you use a van extensively, it may be worth checking whether the actual costs method is more beneficial.
Reference: HMRC mileage rates and allowances.
CIS and MTD
If you work as a subcontractor under the Construction Industry Scheme (CIS), the deductions your contractor withholds are taken at 20% (or 30% if you are not registered). These deductions count toward your Income Tax and National Insurance bill.
Under MTD, CIS deductions should be recorded as part of your quarterly updates. Not all MTD software handles CIS explicitly. Coconut is one tool that specifically supports CIS subcontractors.
Cuppa is currently focused on standard sole traders without CIS deductions. If CIS is a significant part of your work, check that your chosen software handles CIS deductions correctly before committing.
When Does MTD Apply to Tradespeople?
MTD for Income Tax applies to sole traders whose qualifying income exceeds:
| Threshold | Mandatory from |
|---|---|
| £50,000+ per year | April 2026 |
| £30,000+ per year | April 2027 |
| £20,000+ per year | April 2028 (proposed) |
If your earnings are currently below £50,000, you are not yet required to file quarterly. But starting early avoids a rushed transition later, and several of these tools are free.
Reference: HMRC MTD for Income Tax.
What Tradespeople Most Often Get Wrong with MTD
Forgetting to record cash payments. All income counts for MTD, including cash jobs. Digital records must include cash transactions, not just bank payments.
Mixing business and personal expenses. If you use your van for personal trips, only the business proportion of vehicle costs is claimable. Keeping a mileage log throughout the year is the simplest way to prove the split.
Missing the quarterly deadlines. Under MTD, you have four quarterly deadlines per year plus a final declaration. Missing a quarterly update results in penalty points that accumulate over time.
Not registering for MTD before the deadline. You need to register with HMRC before you start submitting. Registration is separate from signing up for software. Do this well before April 2026 if you are above the £50,000 threshold.
Verdict for Tradespeople
For most sole-trader tradespeople who are not CIS subcontractors and do not employ staff, Cuppa is the simplest and cheapest MTD option. The free plan covers income recording, expense tracking, mileage, bank imports, and HMRC quarterly submissions.
If you work under CIS, Coconut's CIS support makes it a more appropriate choice despite the higher cost.
If you want free full-featured bookkeeping with invoicing and VAT, QuickFile is worth considering.
If your business has grown to include employees, KashFlow gives you more room with payroll included.
Related guides:
- Making Tax Digital for Income Tax: complete guide for sole traders
- Sole trader allowable expenses: HMRC guide 2026
- Mileage claims for sole traders: HMRC rates explained
- Free MTD software for UK sole traders: what is actually free?
- Best MTD software for UK freelancers
Last reviewed: 6 March 2026. Pricing verified against published information at that date.