The best MTD software is not just HMRC compatible, it should also be easy to use, time efficient and provide you with reliable, real time information that enables you to run your business more profitably. Of course it is still essential to use HMRC recognised software, so that you meet the latest tax regulations. However, complex software may increase errors, and take up large amounts of time, which is why in this blog we will be recommending software that is both HMRC approved and user friendly.
MTD Compliant Software
At 360 Chartered Accountants we understand that different businesses have different wants and needs. Sole traders may prioritise simplicity, however landlords will need MTD software that is more property specific. Below are some of the best Making Tax Digital software options available, each with specific features to help different businesses.
FreeAgent
FreeAgent is one of the most popular MTD software choices among freelancers, sole traders and small businesses. This is because of their exceptional support, easy to use features, and AI-powered technology that automatically categorises bank transactions. FreeAgent is also an award winning software, with awards such as Friendliest Software of the Year (Which they have won 6 times), 2024 UK Customer Experience winner and Best Contractor Accounting Software in 2024.
Hammock
For landlords, Hammock is highly recommended because it has specific features made to support landlords with their taxes. For example you can monitor your rental income and expenses in real time, get up to date reports per property, and manage your quarterly submissions, all in one simple application.
QuickBooks
If you are looking for a more comprehensive bookkeeping software, QuickBooks is a great choice. Transactions are imported automatically from your bank, it is HMRC approved for making tax digital, and it is a cloud based software making it accessible from anywhere. If you’re not sure where to start, speak to 360 Accountants, who can help you choose the right QuickBooks plan and get everything set up.
Xero
Xero is trusted by over 4.9 million subscribers worldwide and is fully HMRC recognised, making it a reliable choice for businesses preparing to make tax digital. It is also great for small and larger businesses due to its ability to grow with businesses and offer more advanced features when necessary.
At 360 Accountants we offer bespoke Xero training to help you and your team use the software efficiently, and the training can be delivered in a way that works best for you, whether that is online or in person.
We’ve also got a number of Xero guides available for you to watch over on our YouTube channel. Take a look at this one for example 👇
Or use our Xero helpline to get in touch with a specific query: xero@360accountants.co.uk
Struggling to Decide Between Xero & QuickBooks?
Xero and QuickBooks are incredibly similar tools at face value, with both offering everything you need to stay compliant with Making Tax Digital. To help you make the right choice, we’ve broken down the key differences between Xero and QuickBooks. If you’re still not sure which is best for your business, our team is always happy to offer advice and help you find the option that works best for you.
Is There Free Software for Making Tax Digital?
There are some free MTD softwares available, however for larger and more complex companies paid MTD software is usually necessary. This is due to these businesses needing the extra features such as unlimited users, auto bank reconciliation, and project tracking. These extra features will not be essential for all businesses as the basic tools can be enough, but it is something to take into consideration when choosing your MTD software.
Sage
For non-VAT registered sole traders wanting to simplify manual record keeping, and taxes, Sage can be a great choice as they offer a basic free MTD software. In addition, Sage also offers a paid plan for sole traders, with slightly more advanced features for as little as £0.70 per month.
ClearBooks
ClearBooks also offers a free MTD software plan for sole traders and landlords with very basic needs. Therefore, for self-employed individuals who want to create digital records with ease and need to submit MTD quarterly updates to HMRC, ClearBooks is a strong choice.
Still Finding MTD Confusing?
Making Tax Digital can feel difficult, however with the help of 360 accountants, who have helped hundreds of businesses transition to MTD, you can feel at ease. From choosing the right software and setting it up correctly, to providing training and ongoing support, 360 Accountants have got your back. Get in touch with our expert team today.
