MTD for Income Tax software compared for accountants (2026)
Last updated: October 20, 2026
By the Glasscubes editorial team
In short: MTD for Income Tax software for accountants falls into three kinds — bookkeeping software that clients keep their records in (Xero, QuickBooks, FreeAgent, Sage), bridging tools that send quarterly updates from spreadsheets (TaxCalc MTD Quarterly Filer, Coconut’s bridging plan, MTD Assist), and practice tax-return software that files the year-end return (TaxCalc, IRIS, CCH, Bright). Most firms end up with one tax-return product and more than one way for clients to send quarterly updates, because not every client will use bookkeeping software.
What the software has to do
HMRC requires compatible software to keep digital records of self-employment and property income and expenses, send quarterly updates, and submit the tax return by 31 January. Bridging software that connects to records kept in spreadsheets is allowed, provided the records are digitally linked. HMRC does not provide its own software, and lists compatible products in its software finder, which can be filtered for agents.
The options compared
| Product | Kind | Files to HMRC | Published price |
|---|---|---|---|
| MTD Assist (Glasscubes) | Client self-serve quarterly filing, spreadsheet-simple records | Quarterly updates (the tax return stays with your firm’s tax software) | Free for firms; £36 + VAT per client per tax year |
| Xero | Bookkeeping | Quarterly updates and tax return | Client plans from £18 / month ex VAT |
| QuickBooks | Bookkeeping | Quarterly updates and tax return | Client plans on QuickBooks’ site |
| FreeAgent | Bookkeeping | Quarterly updates and tax return | Sole trader £19 / month, landlord £10 / month ex VAT |
| Sage | Bookkeeping | Quarterly updates and tax return | See Sage |
| TaxCalc | Bridging (MTD Quarterly Filer) and tax-return software | Quarterly updates and tax return (Tax Return Production) | Quarterly Filer from £112 / year ex VAT for 12 clients |
| Coconut | Bookkeeping or bridging | Quarterly updates and tax return on the MTD Filing plan | Bridging £49.99 / year; MTD Filing £129.99 / year (inc VAT) |
| IRIS | Tax-return software with spreadsheet import | Quarterly updates and tax return | See IRIS |
| CCH (Wolters Kluwer) | Tax-return and practice software | Quarterly updates and tax return | See Wolters Kluwer |
| Bright | Bridging, bookkeeping and tax-return software | Quarterly updates and tax return (BrightTax) | See Bright |
| Starling Accounting (formerly Ember) | Bookkeeping inside a bank account | Quarterly updates (tax return listed as coming soon) | Essentials free; Plus £7 / month |
How to choose
- Clients already in bookkeeping software — use that product’s MTD features and your practice view of it. Moving them is rarely worth it.
- Clients who keep spreadsheets or a shoebox of receipts — these are the clients who will be chased every quarter. A bridging tool, or a client self-serve tool such as MTD Assist, keeps them compliant without your team supporting bookkeeping software.
- The year-end return — keep it in your practice tax software. Check that it accepts the quarterly data from every route your clients use.
- Clients with more than one agent — MTD for Income Tax allows one main agent and supporting agents. Check the software supports multiple agents.
- Who pays — some products bill the firm, some the client, and some either. Decide before rolling out, because changing it mid-year is awkward.
Sources
- HMRC: find software that’s compatible with MTD for Income Tax
- HMRC: create digital records
- HMRC: choose agents for MTD for Income Tax
- Vendors: Xero, QuickBooks, FreeAgent, Sage, TaxCalc, Coconut, IRIS, CCH, Bright, Starling Accounting
Compiled from each vendor’s own published material, October 2026. Prices are the vendors’ own published figures and change often; confirm current terms with the vendor. MTD Assist is a Glasscubes product.
See the 2026-27 MTD for Income Tax deadlines, or how MTD Assist works.