For UK sole traders comparing Cuppa vs Otis Tax, both tools are free and both are HMRC-recognised for Making Tax Digital.
The key difference is in the depth of the daily workflow. Cuppa offers a structured ongoing bookkeeping experience with a live tax estimate, bank imports, and mileage tracking. Otis Tax is a compliance-focused tool that handles MTD filing for sole traders, freelancers, and landlords.
If you want a complete free bookkeeping workflow, Cuppa offers more. If you want the simplest possible free MTD filing tool that also covers landlord income, Otis Tax is a practical option.
Key Takeaways
- Both Cuppa (free plan) and Otis Tax are free with no subscription fee.
- Cuppa's free plan includes more workflow features: live tax estimate, bank imports, mileage tracking, multi-currency.
- Otis Tax supports landlords and freelancers alongside sole traders. Cuppa is focused on sole-trader self-employment income.
- Both are HMRC-recognised and support quarterly MTD submissions.
Choose Cuppa or Otis Tax?
Choose Cuppa if:
- You want the most complete free sole-trader bookkeeping workflow
- You want a live tax estimate updated as you record transactions
- You want bank imports to reduce manual entry
- You want mileage and home office tracking included
Choose Otis Tax if:
- You have landlord or property income alongside self-employment
- You want a straightforward free MTD filing tool with minimal configuration
- You are comfortable with a simpler interface focused on compliance rather than workflow
- You want a zero-cost option with no paid tier to consider
Neither is ideal if:
- You need invoicing, payroll, or accountant multi-user access built in
- You need a mobile-first experience with receipt scanning
Cuppa vs Otis Tax at a Glance
| Criteria | Cuppa | Otis Tax |
|---|---|---|
| Product style | Sole-trader MTD workflow app | MTD compliance filing tool |
| Target user | UK sole traders | Sole traders, freelancers, landlords |
| Setup effort | Very low | Low |
| Pricing | Free (£0) or Pro (£4.50/month) | Free (£0) |
| HMRC / MTD fit | HMRC-recognised | HMRC-recognised |
| Live tax estimate | Yes | Not confirmed |
| Bank imports | Yes | Not listed |
| Mileage tracking | Yes | Not confirmed |
| Landlord income | No | Yes |
| Invoicing | Yes (Pro) | No |
| Best fit | Complete sole-trader workflow at no cost | Zero-cost compliance filing, including landlords |
Pricing and Value
Advertised UK pricing (last checked: 6 March 2026):
| Plan | Cuppa | Otis Tax |
|---|---|---|
| Free plan | Free: £0/forever | Free: £0 (no paid tier) |
| Paid plan | Pro: £4.50/month or £45/year | No paid tier |
Notes:
- Both tools are genuinely free at the entry level.
- Cuppa's paid Pro plan adds invoicing, AI assistant, priority support, bank integration, and amendment support.
- Otis Tax has no paid tier at the time of writing.
- Always verify before relying on either tool: Cuppa pricing and Otis Tax website.
For sole traders who want a free MTD tool, both are zero cost. The deciding factor is which workflow better fits your habits.
MTD Workflow Fit
Both tools are HMRC-recognised and support the core MTD cycle: quarterly updates, annual submissions, and HMRC integration.
Cuppa is designed around a consistent weekly recording habit. You enter income and expenses as they happen, the dashboard shows a running tax estimate, and quarterly submissions follow naturally from that habit.
Otis Tax takes a compliance-first approach: digital records, quarterly returns, and annual submissions. The workflow is designed for users who want reliable HMRC filing without building an elaborate bookkeeping routine.
For sole traders who want to build strong ongoing habits and see their tax estimate update in real time, Cuppa's workflow is more supportive of that. For users who want the minimum viable MTD compliance process at zero cost, Otis Tax is a practical option.
Reference: HMRC MTD for Income Tax guidance.
Setup and Learning Curve
Cuppa setup is designed to be completed in under 10 minutes: add business details, start recording. The interface uses plain-English categories and shows a live tax estimate from the first transaction.
Otis Tax positions itself as straightforward to use with no complex configuration. The exact setup flow was not fully documented at the time of writing.
For a sole trader starting from scratch, both tools are accessible. Cuppa's more structured workflow may be easier to maintain consistently over time.
Switching From Spreadsheets
Cuppa:
- Import year-to-date income and expenses via CSV
- Set opening balances
- Start recording from today
- Quarterly submission available immediately
Otis Tax:
- Upload existing records as part of the digital record-keeping flow
- Begin quarterly filing from your current position
Both tools can accommodate a mid-year switch from spreadsheets. Cuppa's CSV import makes the transition straightforward for most sole traders.
Pros and Cons
Cuppa
Pros
- More complete free workflow: live tax estimate, bank imports, mileage tracking
- Permanent free plan with no ledger limits
- Designed exclusively for sole traders
- Pro plan available if you want invoicing and amendments
- AI assistant on Pro
Cons
- No landlord/property income support
- No free receipt scanning
Otis Tax
Pros
- Completely free with no paid tier
- Supports landlords and freelancers alongside sole traders
- HMRC-recognised for MTD compliance
- Simple compliance-focused interface
Cons
- Less workflow depth than Cuppa's free plan
- Fewer day-to-day features (no live tax estimate, no bank imports confirmed)
- Less established brand than some alternatives
- Limited public documentation at time of writing
Verdict: Which Should You Choose?
For UK sole traders who want the most complete free workflow, Cuppa's free plan is the stronger choice. It includes a live tax estimate, bank imports, mileage tracking, multi-currency, and HMRC quarterly submissions, all at no cost.
Otis Tax is a legitimate free option, particularly for users who also have landlord income or who want the simplest possible zero-cost MTD compliance tool without a paid tier to consider.
One-line rule: If you want the best free sole-trader bookkeeping workflow, use Cuppa. If you want a zero-cost MTD tool that also handles landlord income, Otis Tax is worth considering.
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