For UK sole traders comparing Cuppa vs My Tax Digital, both are HMRC-recognised for Making Tax Digital, but they differ on price: My Tax Digital is free, while Cuppa's bookkeeping is free and its HMRC filing sits on a low-cost Pro plan.
The meaningful difference is in who each tool is designed for and how the workflow is structured.
Cuppa is built for sole traders who want a clean, guided bookkeeping workflow with a live tax estimate, CSV import, and clear categories. My Tax Digital is a more technically oriented compliance tool that covers both MTD for VAT and MTD for Income Tax, with a bridging mode for spreadsheet users and a full accounting mode.
For sole traders who want the simplest possible sole-trader-first experience, Cuppa is the more polished choice. For sole traders who are VAT-registered or want a single free tool covering both VAT and Income Tax, My Tax Digital covers more ground.
Key Takeaways
- My Tax Digital is entirely free. Cuppa's Free plan has no usage limits either; the Pro plan at £6/month (£59/year) adds HMRC filing and more.
- Cuppa is designed for sole-trader bookkeeping with a guided workflow. My Tax Digital covers VAT and Income Tax with bridging and accounting modes.
- My Tax Digital supports spreadsheet bridging, allowing spreadsheet users to add an HMRC submission layer without changing their record-keeping approach.
- Cuppa's plan includes CSV import, mileage tracking, and a live tax estimate. My Tax Digital has a more functional, less polished interface.
Choose Cuppa or My Tax Digital?
Choose Cuppa if:
- You want the most complete workflow for sole-trader bookkeeping
- You prefer a clean, modern interface designed for non-accountants
- You want a live tax estimate updated as you record
- You are not VAT-registered and only need Income Tax MTD
Choose My Tax Digital if:
- You are VAT-registered and want both MTD for VAT and MTD for Income Tax in one free tool
- You want spreadsheet bridging to keep your existing spreadsheet workflow
- You are comfortable with a more functional interface
- You manage multiple clients or businesses and want a free multi-entity tool
Neither is ideal if:
- You need invoicing, payroll, or accountant collaboration tools
- You want a mobile-first experience with receipt scanning
Cuppa vs My Tax Digital at a Glance
| Criteria | Cuppa | My Tax Digital |
|---|---|---|
| Product style | Sole-trader-first MTD workflow app | Multi-mode MTD compliance tool (VAT + ITSA) |
| Target user | UK sole traders | Sole traders, VAT businesses, accountants |
| Setup effort | Very low | Low to medium |
| Pricing | Free plan, or Pro at £6/mo (£59/yr) for filing | Free (£0) - no paid tier |
| HMRC / MTD fit | HMRC-recognised (ITSA) | HMRC-recognised (VAT + ITSA) |
| Live tax estimate | Yes | Not confirmed |
| Bank imports | CSV import only (no bank feeds) | Yes (CSV and bank transactions) |
| Spreadsheet bridging | CSV import | Yes (dedicated bridging mode) |
| MTD for VAT | No | Yes |
| Invoicing | Yes | Yes (e-invoicing) |
| Interface design | Modern, sole-trader-focused | Functional, compliance-focused |
| Best fit | Clean sole-trader bookkeeping workflow | VAT + ITSA compliance, spreadsheet bridging |
Pricing and Value
Advertised UK pricing (last checked: 6 March 2026):
| Plan | Cuppa | My Tax Digital |
|---|---|---|
| Free plan | Free: £0 (bookkeeping, import, tax estimate, forever) | Free: £0 (entirely free, no paid tier) |
| Paid plan | £6/month or £59/year (Pro, for HMRC filing) | No paid tier |
Notes:
- My Tax Digital is entirely free with no paid upgrade path at the time of writing.
- Cuppa's Free plan has no usage limits; the Pro plan adds invoicing, AI assistant, and amendment support.
- Always verify before relying on either tool: Cuppa pricing and My Tax Digital website.
My Tax Digital is zero cost throughout; Cuppa's bookkeeping is also zero cost, with a flat £6/month (£59/year) Pro plan for HMRC filing. For sole traders who only need Income Tax MTD, Cuppa's workflow is the more complete one.
MTD Workflow Fit
Both tools are HMRC-recognised for MTD Income Tax.
Cuppa centres the entire product on the sole-trader MTD quarterly cycle. Record income and expenses, see a live running tax estimate, submit quarterly when due. The interface is designed for this workflow and nothing else.
My Tax Digital offers two modes: accounting mode (full digital record-keeping) and bridging mode (submit from a spreadsheet). It covers MTD for VAT and MTD for Income Tax. The compliance coverage is broader, but the interface is more technical and less designed for a sole trader with no accounting background.
For users who want an HMRC submission layer on top of an existing spreadsheet, My Tax Digital's bridging mode is a practical and free option.
Reference: HMRC MTD for Income Tax guidance.
Setup and Learning Curve
Cuppa is set up in minutes: add business details, record your first transaction, see your tax estimate. No accounting knowledge required.
My Tax Digital requires choosing between accounting mode and bridging mode, configuring your chart of accounts or spreadsheet format, and understanding the VAT and Income Tax workflows if both apply. It is accessible but requires more initial decisions.
Switching From Spreadsheets
Cuppa:
- Import year-to-date income and expenses via CSV
- Set opening balances
- Start recording from today with full workflow support
My Tax Digital:
- Option 1 (bridging mode): Keep your spreadsheet and import to My Tax Digital at each quarterly deadline
- Option 2 (accounting mode): Replace the spreadsheet with My Tax Digital's record-keeping
My Tax Digital's bridging mode is specifically useful for spreadsheet users who want MTD compliance without changing their day-to-day records. For users ready to move away from spreadsheets entirely, Cuppa's workflow is more structured.
Pros and Cons
Cuppa
Pros
- Clean, modern sole-trader-first interface
- Live tax estimate updated in real time
- CSV import included in the plan
- Mileage and home office tracking
- Invoicing, amendments, and AI assistant included
Cons
- No MTD for VAT (Income Tax only)
- No spreadsheet bridging mode
- No accountant multi-entity management
My Tax Digital
Pros
- Covers both MTD for VAT and MTD for Income Tax
- Dedicated spreadsheet bridging mode
- Completely free, no paid tier
- E-invoicing supported
- Suitable for accountants managing multiple clients
Cons
- More functional, less polished interface
- More complex for sole traders who only need ITSA compliance
- No mobile app confirmed
- No live tax estimate confirmed
Verdict: Which Should You Choose?
For UK sole traders who want a clean, modern bookkeeping workflow with a live tax estimate and direct HMRC submissions, Cuppa is the stronger choice. The workflow is designed specifically for sole traders, the interface is polished and non-technical, bookkeeping is free, and the Pro plan's feature set for filing is more complete.
My Tax Digital is the better choice if you are VAT-registered and want both VAT and Income Tax covered in one free tool, or if you want to keep your spreadsheet and add bridging submissions without changing your record-keeping approach.
One-line rule: If you want the best sole-trader bookkeeping experience, free to start with Pro filing when you're ready, use Cuppa. If you need free VAT + Income Tax MTD coverage or spreadsheet bridging, My Tax Digital covers both.
Related guides: