The cheapest MTD software is the eligible option that covers your full tax position at the lowest total cost. Some products are free for qualifying users; others charge for filing, extra businesses or annual tax returns. Compare the ongoing price and the work included, rather than an introductory discount.
Disclosure: I am the founder of ClearMTD as well as SH Applications. This is a buying guide, not an independent product ranking. ClearMTD's public site was offering a waitlist when reviewed on 1 October 2026; the advertised price does not establish that live filing or HMRC recognition is available.
Who needs Making Tax Digital for Income Tax?
HMRC's rollout uses qualifying gross self-employment and property income: over £50,000 in 2024–25 for a 6 April 2026 start; over £30,000 in 2025–26 for 6 April 2027; and over £20,000 in 2026–27 for 6 April 2028. Exemptions and individual circumstances matter. Use HMRC's eligibility guidance to check your own position.
What must the software cover?
You need digital records, quarterly updates and an annual tax return submitted through compatible software. Quarterly updates are summaries, not four extra tax returns. You can use a combination of products, including a spreadsheet with suitable bridging software. Check support for every income source with HMRC's software selection guidance and finder.
Quarterly deadlines are 7 August, 7 November, 7 February and 7 May. Updates are cumulative from the start of the tax year; standard and calendar update periods have the same deadlines. See HMRC's quarterly update guidance for the periods and current rules.
Compare the full cost, not just the headline subscription
| Option | When to consider it | What to check |
|---|---|---|
| Free software | A supported, straightforward tax position | Eligibility limits, businesses included, support and annual filing |
| Spreadsheet plus bridging software | You already keep suitable digital records | Digital links, import format and whether another product is needed for the tax return |
| Full accounting software | You also need invoicing, bank feeds or accountant collaboration | Relevant Income Tax plan, renewal price, VAT and add-ons |
| Focused filing product | You want a narrower workflow | Availability, recognised functionality and coverage of all your income sources |
For example, FreeAgent's pricing page includes free access through eligible banking arrangements, subject to its conditions. That is why a blanket claim that a paid product is the UK's cheapest would be misleading. Check your bank or accountant before buying a second subscription.
Where ClearMTD fits
ClearMTD is our focused digital-record and filing product. Its public product page advertised £7.50 per month or £65 annually when checked on 1 October 2026. Twelve monthly payments total £90, so the annual option is £25 lower. The site currently invites visitors to join a waitlist.
Before relying on it for a filing deadline, confirm live availability, supported tax circumstances, HMRC recognition and annual-return coverage. An integration with an HMRC API alone is not evidence that a product is recognised or suitable for your return.
A practical buying checklist
- Check your start date and any exemption with HMRC.
- List your businesses, property income and other tax-return information.
- Use HMRC's software finder to shortlist compatible products.
- Compare twelve months of fees, VAT, add-ons and any separate annual filing cost.
- Try a typical record, correction and export before moving your records.
- Confirm who will submit your tax return and how you can leave with your data.
This guide explains software selection; your accountant or HMRC can help with your individual tax position. For the engineering behind our product, read the ClearMTD build story.
More from the Build Log
- Building ClearMTD — The full story of how we built ClearMTD from scratch
- 40 Business Automations — Practical automation ideas across finance, sales, marketing, and operations
- The Cost of Not Automating — What happens when your competitors automate and you don’t
Reviewed and updated .