The Builder's Verdict

Best accounting and MTD software for UK trades (2026)

BV-G-008Best-ofDesk assessed

By Jake WalkerCommercial links disclosed below

The shortlist verdict

For a contractor who needs to file CIS300 directly, Sage is the clearest all-tier option; Xero also files directly on Ignite and above for an extra £5 a month, while QuickBooks confirms it on Simple Start, Essentials and Plus. FreeAgent records CIS and produces the figures but does not submit CIS300 itself. Sole traders focused on MTD for Income Tax should start with FreeAgent, Xero or QuickBooks Sole Trader Plus. Every conclusion here is a desk assessment of vendor documentation and pricing checked 21 August 2026, not hands-on testing.

Desk assessed: We checked current UK pricing against official vendor sources, read the official documentation and terms, and weighed public user evidence. No hands-on use yet.

What that doesn't mean: That we've run it on a live job. Day-to-day feel, speed and support quality are reported from user evidence, not our own use.

What earned a place on this list

  • Available in the UK with a current, verifiable price
  • MTD capability described precisely rather than as one blanket badge
  • CIS subcontractor recording and contractor CIS300 filing kept separate
  • Limitations and unverified points stated instead of inferred

MTD and CIS at a glance

Desk-assessed from vendor documentation checked 21 August 2026. “Unverified” means the checked source did not establish the claim; it does not mean the feature is absent.

ProductMTD for VATMTD for Income TaxSubcontractor CISDirect CIS300 filing
Sage AccountingConfirmedUnverifiedConfirmedConfirmed on all checked tiers
FreeAgentConfirmedConfirmed on Sole TradersConfirmedNo, figures prepared for external filing
XeroConfirmedConfirmed on current tiersConfirmedConfirmed on Ignite and above, £5/month add-on
QuickBooks OnlineConfirmed from Simple StartConfirmed on Sole Trader PlusConfirmed on named tiersConfirmed on Simple Start, Essentials and Plus

The shortlist

Sage Accounting

Best clear all-tier choice for contractor CIS300 filing

Sage documents manage-and-submit CIS on every checked tier, including direct CIS300 filing using your own HMRC credentials. Payroll is bundled too. Its product page did not independently confirm MTD for Income Tax, so do not infer that from its VAT-focused MTD wording.

From £20 per month ex VAT (introductory £2/mo for 6 months when checked, 1 user) · 30-day free trial, or the introductory discount above instead of a trial · checked 21 Aug 2026

Start the free trial (opens Sage Group plc in a new tab)

FreeAgent

Best starting point for sole-trader MTD for Income Tax

The Sole Traders plan is explicitly built around quarterly MTD for Income Tax updates and a final declaration. It supports CIS records for contractors and subcontractors, but it does not submit the monthly CIS300 return directly.

From £19 per month ex VAT (introductory £9.50/mo for 6 months when checked) · 30-day free trial · checked 21 Aug 2026

Start the free trial (opens FreeAgent Central Ltd (a NatWest Group company) in a new tab)

Xero

Best balanced option with direct CIS filing available

Every current tier, including the entry-level Simple plan, is labelled MTD for Income Tax ready and handles subcontractor CIS calculations. Direct contractor CIS300 filing is a separate £5/month add-on confirmed on Ignite and above; Simple's own plan page does not list it as available. A confirmed price rise applies from 1 September 2026, so check the dated price note.

From £16 per month ex VAT (introductory £3.20/mo for the first 6 months when checked) · One month free, or the introductory discount above instead of a trial · checked 21 Aug 2026

Start the free trial (opens Xero Limited in a new tab)

QuickBooks Online

Best range of tiers, but check the CIS detail

Sole Trader Plus is explicitly MTD for Income Tax ready and the wider range scales to 25 users. Direct CIS300 filing is confirmed on Simple Start, Essentials and Plus, not on every tier; payroll is a separate paid product.

From £10 per month ex VAT (introductory £1/mo for 6 months when checked, 1 user) · 30-day free trial, or the introductory discount above instead of a trial · checked 21 Aug 2026

Start the free trial (opens Intuit Inc. in a new tab)

The decision depends on which side of CIS you are on

A subcontractor who only needs deductions recorded does not need the same workflow as a contractor filing a monthly CIS300 return. All four products document CIS capability, but that single label hides the important difference: FreeAgent does not submit CIS300 directly, Sage does, Xero does on Ignite and above with a paid CIS add-on, and QuickBooks confirms direct filing only on named tiers.

That distinction is more useful than a generic feature count. Decide first whether you file CIS300 as a contractor, record deductions as a subcontractor, or do neither; then compare the MTD and company-type fit.

MTD for VAT is not MTD for Income Tax

Do not treat an 'MTD ready' badge as one blanket promise. MTD for VAT and MTD for Income Tax are separate schemes. Xero states MTD for Income Tax readiness across its current plans; FreeAgent has a dedicated Sole Traders plan; and QuickBooks explicitly marks Sole Trader Plus as ready. Sage's checked product page describes VAT calculation and submission, but did not independently confirm MTD for Income Tax, so this comparison leaves that point unverified.

How to use this shortlist

Shortlist by business type and tax workflow before price. Then confirm the exact tier contains the capability you need, check the standard price after the introductory offer, and use the trial with fictional data before moving live records. Payroll is bundled on relevant Xero, FreeAgent and Sage plans in different ways; QuickBooks sells payroll separately, so compare the complete setup rather than the headline subscription alone.

Questions people actually ask

Which accounting software files CIS300 directly to HMRC?

From the four products checked on 21 August 2026: Sage confirms direct CIS300 filing on all three Accounting tiers; Xero offers contractor CIS returns on Ignite and above for an extra £5 a month, but not on its entry-level Simple plan; and QuickBooks confirms filing on Simple Start, Essentials and Plus. FreeAgent prepares the figures but explicitly does not submit CIS300 directly.

Is MTD for VAT the same as MTD for Income Tax?

No. They are separate schemes and a generic 'MTD ready' statement can hide that distinction. This shortlist records the two separately and leaves a capability unverified when the checked source only describes VAT.

Evidence & sources

  1. Xero plans, MTD for Income Tax status, VAT and CIS pricing

    Xero (vendor) · checked · vendor/commercial source

  2. Xero Simple plan's included features (no CIS300-filing add-on listed) versus Xero Ignite's included features and optional CIS300-filing add-on

    Xero (vendor) · checked · vendor/commercial source

  3. FreeAgent plan pricing and MTD for Income Tax features

    FreeAgent (vendor) · checked · vendor/commercial source

  4. FreeAgent contractor CIS workflow and CIS300 filing limit

    FreeAgent Support · checked · vendor/commercial source

  5. Sage Accounting tiers, VAT, payroll and CIS features

    Sage (vendor) · checked · vendor/commercial source

  6. QuickBooks UK tiers, MTD and pricing

    QuickBooks (vendor) · checked · vendor/commercial source

  7. QuickBooks CIS300 filing tier applicability

    QuickBooks Support · checked · vendor/commercial source

Prices and terms change. If a source above no longer matches what we've written, tell us via the corrections page and we'll fix it.