Guide to 7 Best MTD Compliant Software for Different Client Types

If you’re running a UK business that handles VAT returns or tax filings, you’re now facing a crucial deadline. By January 2025, every VAT-registered business must use MTD compliant software, making digital tax management no longer optional but essential for staying within HMRC requirements.

The numbers tell an interesting story. About 68% of registered businesses have already seen benefits from Making Tax Digital changes. Meanwhile, 67% report reduced errors in their tax filings – a significant advantage when accuracy directly affects your bottom line and compliance standing.

The challenge many business owners face isn’t whether to adopt MTD software, but which solution best fits their specific needs. Price points vary considerably, from FreshBooks at £15 monthly to QuickBooks’ self-employed plan at £10 per month – yet cost alone doesn’t tell you which offers the right balance of features for your situation.

With MTD for Income Tax becoming mandatory from April 2026, finding the right digital tax solution grows more urgent each month. The market offers everything from free MTD compliant software to premium packages with extensive features – making the choice potentially overwhelming when you’re focused on running your actual business.

This guide examines the 7 best MTD compliant software options available for UK businesses in 2025. You’ll see how they compare in features, pricing, and business fit. Whether you operate a small enterprise below the £85,000 VAT threshold or manage complex requirements across multiple business activities, you’ll find practical options to make your tax digitalisation both compliant and beneficial.

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1. MTDSorted

_{Image Source: www.mtdsorted.co.uk}

MTDSorted stands out as an HMRC-recognized MTD compliant software that gives UK businesses both free and paid options for handling digital tax requirements. The platform appears directly on HMRC’s official “Making Tax Digital Software” list, providing essential tools for VAT returns and digital record-keeping.

MTDSorted free MTD software features

The Lite plan from MTDSorted offers genuinely free MTD compliant software for businesses looking to meet compliance needs without additional costs. Unlike many competitors that limit free submissions, this platform allows unlimited VAT return submissions for a single company at no cost. The free plan includes:

• Direct HMRC connection for VAT submissions
• Complete tax overview dashboard
• VAT deadline reminders and submission confirmations
• Spreadsheet importing capabilities
• Access to previously submitted VAT returns
• Digital bridging functionality

What stands out here is that the free version delivers all mandatory elements needed for MTD VAT compliance, including accountant access functionality. For businesses simply looking to meet basic requirements without extra expense, the free tier provides a straightforward solution while maintaining full HMRC recognition.

The platform architecture keeps each business entity’s records separate – ensuring data security while still allowing for centralized management. You’ll receive automatic alerts about upcoming tax deadlines and confirmation notices after submissions, helping reduce the risk of missed filing dates.

MTDSorted pricing and plan comparison

While the Lite plan stays permanently free, MTDSorted also offers a Plus plan at £15 per month for businesses needing additional accounting features. This creates a clear two-tier pricing structure:

Feature	Free Lite Plan	Plus Plan (£15/month)
VAT Return Submissions	Unlimited	Unlimited
Bridging Software	Included	Included
Tax Overview	Basic	Comprehensive
Bookkeeping Tools	Not included	Full suite
Invoicing	Not included	Included
Bank Reconciliation	Not included	Included
Document Storage	Limited	Secure storage
Multi-user Access	Limited	Team collaboration
Multi-company Management	Not included	Included

The Plus plan comes with a 14-day free trial, letting you test advanced features before committing. Unlike some competitors that charge per submission, MTDSorted maintains a subscription model with no additional transaction fees for either plan.

MTDSorted bridging capabilities and limitations

If your business already uses spreadsheets for VAT calculations, MTDSorted works effectively as bridging software – creating the digital link between your existing record-keeping systems and HMRC. The platform specifically supports importing Microsoft Excel spreadsheets through its dedicated import tool.

The bridging functionality works through two main methods:

1. Direct spreadsheet importing: Upload your existing VAT spreadsheet data directly into MTDSorted
2. Manual entry: Enter final figures from your spreadsheet into MTDSorted for submission

This flexibility lets you maintain your current record-keeping processes while ensuring MTD compliance. According to HMRC guidelines, bridging software must incorporate relevant Making Tax Digital APIs to connect accounting software to HMRC systems, which MTDSorted successfully implements.

The free plan does have several limitations compared to full-featured accounting software:

• No integrated bookkeeping tools for day-to-day transaction recording
• Limited report generation capabilities
• No bank feed connections for automatic transaction importing
• Restricted multi-user functionality
• No invoice creation or management

Though the free version meets compliance requirements, businesses with more complex needs may find these limitations restrictive. The platform works best for smaller enterprises with straightforward VAT requirements or those mainly seeking a compliance solution to complement existing accounting processes.

For companies handling tax for multiple entities, the Plus plan offers more comprehensive capabilities, including the ability to manage each company under a single user account while maintaining separate data environments for each business.

2. [123 Sheets]

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123 Sheets connects your existing spreadsheets directly to HMRC systems, making it ideal if you prefer sticking with familiar Excel workflows. With over 900 Trustpilot reviews and a five-star average rating, this bridging solution lets you maintain your current processes while meeting MTD requirements.

123 Sheets bridging software overview

The software works by extracting only the necessary data from your spreadsheets and sending it directly to HMRC. This focused approach makes it particularly valuable for:

• VAT submissions
• Self-employed income tax reporting
• Landlord tax submissions
• Accountants managing multiple clients

HMRC has officially recognized 123 Sheets for Making Tax Digital compliance across both VAT and Income Tax submissions. The platform prioritizes user-friendliness over replacing your existing systems and maintains solid security with ISO27001 accreditation and Cyber Essentials Plus certification.

What sets 123 Sheets apart is how it reads only the summary figures needed for tax submissions without storing your underlying financial data. You keep your spreadsheet-based accounting methods while satisfying HMRC’s technical requirements.

123 Sheets pricing and spreadsheet compatibility

Pricing starts at just £19.50+VAT annually, placing 123 Sheets among the more affordable MTD options available. For accountants and businesses handling multiple clients, the tiered pricing structure offers clear value:

Plan Type	Monthly Cost (ex VAT)
Single Business	£1.65
100 Businesses	£9.96
1,000 Businesses	£69.95

Unlike competitors that charge per business, 123 Sheets bases its accountant licenses on taxpayer numbers. This means a single client license covers all of a client’s business activities – from self-employment to property rentals.

The software works seamlessly with:

• Microsoft Excel (versions 1997 through latest)
• Apple Numbers
• OpenOffice
• LibreOffice

This broad compatibility means you can continue using your preferred spreadsheet platform. If you’re already using accounting software like Sage or QuickBooks, 123 Sheets offers specific VAT solutions for these platforms too. You can use data from these systems with 123 Sheets as long as they allow exporting to Excel or CSV format.

123 Sheets HMRC integration and use cases

The software connects directly to HMRC systems for both VAT and Income Tax submissions. For VAT returns, it handles all schemes including:

• Flat Rate Scheme
• VAT Groups
• Partial Exemption
• Capital Goods Scheme
• Margin Schemes
• Cash Accounting
• Annual Schemes
• Retail Schemes

Beyond basic VAT submissions, 123 Sheets gives you better visibility into your tax affairs, including real-time access to amounts you owe HMRC. With MTD for Income Tax Self-Assessment becoming mandatory from April 2026, the software is already prepared to handle the quarterly updates this will require.

123 Sheets works best for:

1. Businesses with established spreadsheet-based accounting processes reluctant to change systems
2. Accountants managing multiple clients seeking cost efficiency (saving potentially £400+ compared to platforms like Sage)
3. Self-employed individuals and landlords preferring familiar Excel interfaces
4. Companies needing to manipulate data before submission to HMRC

The software isn’t perfect – users report being logged out too frequently and navigation that could be improved. Despite these minor issues, 123 Sheets remains particularly suitable for smaller businesses and accountants who value affordability and spreadsheet compatibility over comprehensive accounting features.

3. Adminsoft Accounts

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Adminsoft Accounts breaks the mold of modern cloud-based solutions. Created by a small business owner who understood the practical needs of fellow entrepreneurs, this desktop software delivers full MTD compatibility while maintaining a genuinely free price tag – with no time limitations or feature crippling.

Adminsoft Accounts MTD bridging features

The software connects directly with HMRC systems while giving businesses remarkable flexibility in how they manage their VAT obligations. Key MTD features include:

• Direct VAT return submission to HMRC
• Complete digital record-keeping for all transactions
• One-click export of VAT figures to spreadsheets
• Historical view of previously submitted returns
• Support for all VAT schemes, including post-Brexit requirements

Adminsoft functions as both full accounting software and bridging software at the same time. If you prefer spreadsheet-based bookkeeping, you can output VAT figures to Excel with a single click. When using specialized modules like Shop/Cafe Manager, the system automatically creates the digital records HMRC requires for compliance.

Unlike many MTD platforms, Adminsoft’s traditional VAT method lets you edit figures before submission – though this feature is sensibly disabled in MTD mode to maintain compliance. This hybrid approach means you can work the way that suits your business while still satisfying tax authorities.

Adminsoft Accounts pricing and licensing

This is where Adminsoft truly stands apart from competitors. While many “free” accounting packages eventually expire or restrict key features, Adminsoft has been completely free since December 2006. This makes it possibly the only genuinely free MTD compliant software without time restrictions.

You have two straightforward options:

Option	Cost	Features
Free Version	£0	Full functionality with advertisements
Software Registration Key	From £179	Removes advertisements

Adminsoft’s licensing approach is refreshingly different. The software can run on unlimited computers across multiple locations, and you can legally copy and share it with others as freeware. This open approach runs counter to the subscription-focused models dominating the market.

For businesses needing more advanced capabilities, Adminsoft offers two licensing tiers:

1. Entry-level licenses (about 30-33% less expensive)
2. Full licenses with advanced features

Adminsoft Accounts suitability for small businesses

The software was built specifically for small business operations rather than accountants. It “works the way small business people tend to work” – a design philosophy that makes it accessible to users without accounting backgrounds.

Small businesses gain several advantages:

• Complete double-entry accounting system with sales, purchase, and nominal ledgers
• Inventory control and purchase order management
• Multi-user, multi-company, and multi-currency support
• Specialized modules for retail, hospitality, and automotive businesses
• HR functions and RTI-compliant payroll for UK businesses

For small UK operations with over nine employees, Adminsoft claims to be the only free payroll solution available. The software runs on virtually any Windows machine from Windows 98 through Windows 11, needing minimal resources – as little as 64MB RAM and 150MB disk space.

One standout feature is the software’s continuous operation approach. Unlike most accounting systems that force complex period-end procedures, Adminsoft keeps things simple. This user-friendly design has helped drive over 300,000 downloads.

For MTD compliance specifically, you’ll need Windows 7 or later to submit to HMRC. While the interface does display advertisements in the free version, many small businesses find this a reasonable trade-off for comprehensive accounting capabilities without ongoing subscription costs.

4. ANNA Money

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ANNA Money takes a mobile-first approach to MTD compliance for UK businesses. Originally named “Absolutely No Nonsense Admin,” this platform combines business banking with tax tools in a single app – something quite different from traditional desktop solutions. It’s built for sole traders and small companies who want their financial management in one place.

ANNA Money MTD tools and automation

The app connects directly to HMRC systems for VAT submissions while handling much of the admin work automatically. You get real-time visibility into your tax obligations because ANNA calculates VAT on every transaction, invoice, and receipt as they happen.

What makes ANNA’s MTD features stand out:

• Direct MTD VAT filing through their HMRC-recognized bridging tool
• Automatic VAT calculations from your connected accounts
• Receipt scanning that identifies VAT automatically
• Smart transaction categorisation for correct VAT treatment
• VAT deadline reminders so you never miss a submission

The platform goes beyond basic compliance with “Tax Terrapin,” an AI assistant that answers your VAT questions and points you to official HMRC resources when needed. Both Flat Rate and Standard VAT schemes are supported, so your VAT arrangement doesn’t limit your options.

Spreadsheet users haven’t been forgotten. ANNA offers free MTD VAT templates for Excel and Google Sheets, plus a dedicated bridging tool for spreadsheet uploads. Your first submission through this tool costs nothing, with subsequent filings priced at £3.50+VAT each.

ANNA Money pricing and business account integration

ANNA’s pricing comes in three clear tiers:

Plan	Monthly Fee	Free Transfers	International Transfers	Card Spending Cashback
Pay as you go	£0	Pay per use (£0.20)	£5 each	Up to 1%
Business	£14.90	50 free, then £0.20	1 free, then £5	Up to 1%
Big Business	£49.90	Unlimited	4 free, then £5	Up to 1%

All plans include the same MTD features, though transaction fees differ between tiers. Tax support services cost an additional £24/month regardless of which plan you choose.

A nice touch for seasonal businesses: if you don’t use your account during a month, ANNA doesn’t charge the monthly fee for that period. This helps businesses with irregular trading patterns manage costs more effectively.

The platform connects with multiple e-commerce channels – Shopify, WooCommerce, Amazon, eBay, and Etsy. Once linked, your sales data flows automatically into ANNA with all the VAT information included. The system even handles refunds correctly in your VAT calculations, keeping your returns accurate without manual adjustments.

For those working with accountants, ANNA offers:

• Direct exports to Xero
• Imports from Xero into ANNA
• Compatibility with Sage (currently in development)

ANNA Money pros and cons for VAT returns

Pros:

• 24/7 customer support that typically responds in under 10 minutes
• The “Pots” feature automatically sets aside tax money for future payments
• Clean accounts through automated receipt-to-transaction matching
• Comprehensive e-commerce connections for digital record-keeping
• Submit directly to HMRC without manual data entry

The automated VAT calculations save significant time, especially if you lack accounting expertise. Plus, handling VAT submissions from your phone means you’re not tied to your desk like with traditional desktop solutions.

Cons:

• Functions are limited compared to full accounting packages
• Bridging tool charges per submission after your first free filing
• Full tax support adds £24/month to your costs
• International card spending fees aren’t clearly specified
• No option to hold balances in foreign currencies

ANNA works best for UK businesses operating mainly in the domestic market with straightforward VAT needs. The mobile-first approach suits sole traders and small businesses without dedicated finance staff. Just consider your typical transaction volume carefully when choosing a plan, as the pricing structure could significantly impact your overall costs.

5. EasyBooksApp

If you’re running your business primarily on Apple devices, EasyBooksApp offers a dedicated MTD solution built around mobility and ease of use. This HMRC-recognized software takes a different approach from desktop-heavy alternatives – focusing instead on simplifying bookkeeping for small businesses while ensuring full MTD compliance.

EasyBooksApp MTD features for mobile users

EasyBooksApp has been fully compatible with HMRC’s Making Tax Digital initiative since April 2019, allowing VAT-registered businesses to submit returns directly through their iPhone or iPad. The app lets you:

• Prepare and file VAT returns to HMRC with direct submission
• Generate professional PDF invoices sent straight from iOS devices
• Track business profits and losses through accessible reports
• Manage expenses with built-in receipt tracking
• Monitor sales and inventory in real-time

The software was designed primarily for self-employed individuals and small business owners who handle their own books and need straightforward compliance tools. With accreditation from The Institute of Certified Bookkeepers, it balances professional standards with user-friendly operation.

The app streamlines the entire VAT submission process, helping you avoid those mandatory penalties HMRC now imposes for non-compliance. After filing, you can access your submission history and prepare for future tax obligations through the same interface.

EasyBooksApp pricing and platform support

EasyBooksApp offers three distinct pricing tiers:

Plan	Monthly Price	Annual Price	Key Features
Bronze	£13/month	£120/year	MTD VAT filing, unlimited transactions, online syncing, basic support
Silver	£15/month	£144/year	Bronze features plus customer invoicing, time tracking, 5GB attachments
Gold	£19/month	£180/year	Silver features plus priority support, unlimited attachments, foreign currencies

Annual billing saves you up to £48 per year compared to monthly payments. One subscription covers multiple businesses across all your Apple devices – making it cost-effective if you’re managing several ventures under one umbrella.

The software has one significant limitation: it currently runs exclusively on Mac and iOS devices. While their development roadmap once mentioned Android and Windows support, these haven’t materialized. This means businesses operating mostly on non-Apple platforms should look elsewhere for their MTD solution.

EasyBooksApp integrations and data backup

EasyBooksApp offers fewer third-party connections than many competitors. Instead, it focuses on its “Online Sync” service, which provides:

• Continuous online backup of your accounts data
• Synchronization between your Apple devices
• The ability to share business accounts with accountants or partners

The backup system works through an initial “snapshot” upload followed by incremental changes – keeping data usage minimal. All communications between the app and servers use TLS encryption, with data housed in Amazon’s secure data centers.

The Online Sync service automatically backs up and synchronizes data between your iPad, iPhone, and Mac. You can also perform manual backups at regular intervals, with daily or weekly saves recommended depending on your transaction volume.

The system lets you restore data across different Apple devices, meaning you can back up on your iPhone and restore to your iPad or Mac when needed. While it doesn’t offer extensive third-party integrations, its focus on secure data management gives peace of mind for compliance-focused businesses in the Apple ecosystem.

6.Clear Books

Clear Books has been serving UK small businesses with online accounting software since 2008, earning “Excellent” ratings on Trustpilot. If you’re looking for straightforward MTD solutions that satisfy HMRC requirements without unnecessary complexity, Clear Books offers a practical approach that works for businesses of all sizes.

Clear Books MTD compliance features

What makes Clear Books stand out? It’s officially recognized by HMRC for Making Tax Digital submissions across multiple tax types. This isn’t just about VAT – the software connects directly with HMRC for:

• MTD VAT submissions
• MTD Income Tax Self Assessment
• Construction Industry Scheme (CIS) returns
• Payroll submissions (FPS & EPS)

Creating VAT returns couldn’t be simpler. You’ll follow three steps: track your sales and purchases, select your VAT return dates, and review the 9-box return before submitting directly to HMRC. The system handles the technical compliance aspects behind the scenes while you focus on your business.

The platform automatically applies the right VAT rates to your invoices – fixed or variable – ensuring each one appears correctly in your monthly, quarterly, or annual returns. Need to track expenses? The Clear Books app lets you photograph receipts, with built-in text recognition creating the digital records HMRC requires. You’ll also see real-time VAT debt calculations, helping you prepare for upcoming payments without last-minute surprises.

Clear Books pricing and user types

Clear Books understands that different businesses need different approaches to accounting. Their subscription options reflect this practical thinking:

Subscription Type	Ideal For	Key Features
Practice Edition with Micro	Less tech-savvy clients using spreadsheets	Simple data entry, uploads to Practice Edition
Small	Collaborative bookkeeping	Client access, mobile app support
Large	More involved clients	Full system access for both accountant and client

The software works well for sole traders, limited companies, and partnerships alike. If you’re an accountant with clients transitioning from paper-based systems to MTD compliance, the Practice Edition subscriptions provide a gentle path forward. For businesses where owners want more hands-on involvement with their finances, the Small and Large subscriptions enable productive collaboration between you and your accountant.

Clear Books integrations and support

Your accounting software doesn’t exist in isolation – it needs to work with your other business tools. Clear Books connects with several key services:

• Companies House linking for streamlined record management
• Plaid connection providing secure Open Banking transaction feeds
• Stripe integration for accepting card payments on invoices
• Dext compatibility for importing scanned invoices and receipts
• PayPal import capabilities for transaction syncing
• Revolut Business connection for direct bill and payroll payments

When questions arise – and they always do with tax matters – you’ll have access to expert support from a UK-based team via both telephone and email. This responsive support has helped build Clear Books’ strong reputation among small businesses looking for straightforward MTD compliance.

As an Institute of Certified Bookkeepers accredited software registered with the Financial Conduct Authority (reg. no. 843585), Clear Books strikes a balance between professional standards and accessible tools that work for businesses at every stage of growth.

7.IRIS KashFlow

IRIS KashFlow delivers a cloud-based accounting solution specifically built for UK businesses needing MTD compliance. As part of the broader IRIS Software group, it offers features tailored to businesses navigating the sometimes complex world of digital tax requirements.

IRIS KashFlow MTD tools and VAT support

The platform connects your business directly with HMRC systems through a straightforward interface. This direct connection enables you to:

• Submit VAT returns digitally through the MTD service
• Connect using your existing Government Gateway credentials
• Receive tax return due dates automatically from HMRC
• Access detailed VAT reports for compliance verification

Since November 2022, the process has become even simpler. You can now enter your Government Gateway credentials directly in IRIS KashFlow and complete the entire authentication process without separately signing up to MTD via GOV.uk. The connection works through a clean three-step process – select “Connect to HMRC” from the VAT tab, grant authority through the Government Gateway website, and return to KashFlow where a success message confirms your connection.

IRIS KashFlow pricing and plan structure

IRIS KashFlow structures its pricing into three distinct tiers aimed at different business needs:

Edition	Ideal For	Key Features
Starter	Freelancers & contractors	Basic invoicing, VAT returns, single user access
Business	Growing SMEs	Multi-user functionality, unlimited invoices, multi-currency
Business + Payroll	Businesses with employees	All Business features plus integrated payroll for up to five employees

The Starter plan begins at just £5 monthly, with the Business plan at £10 monthly, and the Business + Payroll edition at £15 monthly. Each subscription includes a free trial period, allowing you to test the system properly before making any financial commitment.

IRIS KashFlow integrations and user experience

What sets KashFlow apart is how it connects with other business tools. The platform integrates seamlessly with:

• IRIS Elements – Maintaining consistent client management across products
• IRIS Accounts Production – Importing trial balances directly
• Dext Prepare – Streamlining receipt and invoice processing
• Payment solutions including IRIS Pay for online payments
• E-commerce platforms such as Shopify and ChannelGrabber

For accounting practices managing multiple clients, IRIS KashFlow Connect provides a centralized platform for real-time oversight. This partner-focused tool includes a VAT dashboard where you can manage MTD submissions for all clients in one area.

The user interface uses color coding to highlight different VAT return statuses and a progress bar that improves navigation. The newly developed VAT dashboard adds particular value for accountants – it allows firms to separate MTD VAT return clients from non-MTD clients and submit multiple VAT returns simultaneously.

Comparison Table

Software	Starting Price	Best Suited For	Key MTD Features	Platform Type	Notable Integrations	Unique Selling Point
MTDSorted	Free (Lite Plan)	Small businesses seeking basic compliance	Direct HMRC connection, VAT submissions, Tax overview dashboard	Cloud-based	Not mentioned	Free unlimited VAT submissions for single company
123 Sheets	£19.50/year + VAT	Spreadsheet users, Accountants	VAT submissions, Income tax reporting, Multi-client management	Bridging software	Excel, Numbers, OpenOffice, LibreOffice	Specialized spreadsheet-based solution
Adminsoft Accounts	Free (with ads)	Small businesses, Retail operations	VAT return submission, Digital record-keeping, Multi-company support	Desktop (Windows)	Not mentioned	Genuinely free full-featured accounting software
ANNA Money	£0 (Pay as you go)	Sole traders, Small companies	Automated VAT calculations, Receipt scanning, Direct HMRC filing	Mobile app	Shopify, WooCommerce, Amazon, eBay, Etsy	Combined business banking and tax tools
EasyBooksApp	£13/month	Apple device users, Self-employed	Direct VAT filing, Invoice generation, Expense tracking	iOS/Mac only	Online Sync service	Apple-ecosystem focused solution
Clear Books	Not mentioned	Small businesses, Accountants	VAT submissions, ITSA, CIS returns, Payroll	Cloud-based	Companies House, Plaid, Stripe, Dext	UK-based expert support team
IRIS KashFlow	£5/month	Freelancers to SMEs	Direct HMRC connection, VAT returns, Multi-client management	Cloud-based	IRIS Elements, Dext Prepare, Shopify	Centralized VAT dashboard for practices

How Finexer Supports Accountants with MTD Compliance

While many businesses search for full accounting packages, others need a focused solution that makes VAT submission faster, easier, and fully compliant — without unnecessary complexity.
This is where Finexer’s open banking connectivity comes in.

Finexer helps accounting firms stay MTD-compliant by providing real-time, secure access to 99% of UK bank accounts.
Rather than relying on manual transaction uploads, CSV files, or disconnected ledgers, you can pull live bank data directly into your VAT workflows, keeping your digital records complete, traceable, and ready for submission.

Here’s how Finexer strengthens your MTD setup:

• Real-Time Bank Feeds: Connect client accounts once and receive daily transaction updates automatically.
• Secure Digital Links: Maintain uninterrupted, HMRC-compliant audit trails without manual copying or pasting.
• Excel Integration: Export bank data into your existing spreadsheets to simplify reconciliation and VAT reporting.
• Faster VAT Preparation: Spend less time chasing client records and more time reviewing returns for accuracy.
• Eliminates reconciliation delays by giving your team clean, real-time data that matches bank-side activity.
• Supports digital audit trails required by HMRC, thanks to secure Open Banking data flows.
• Reduces manual requests from clients, since bank access is authorised once and stays updated automatically.
• No Long-Term Contracts: Flexible, usage-based pricing models let you scale as you add new VAT clients.

For accountants aiming to deliver accurate VAT returns while preparing for the next phase of Making Tax Digital,
Finexer offers a practical, cost-effective way to bridge gaps between client records, spreadsheets, and submission-ready MTD filings — without overhauling your current systems.

If part of choosing MTD software means building a smoother, faster VAT workflow, integrating Finexer’s banking connections can future-proof your firm’s digital compliance strategy.

Conclusion

Your choice of MTD compliant software shapes how smoothly your business handles tax obligations in the coming years. Each solution we’ve examined offers distinct advantages that match different business profiles, and finding the right fit means considering both your immediate needs and long-term tax management strategy.

If you’re running a small business on a tight budget, Adminsoft Accounts and MTDSorted’s free options deliver genuine value without ongoing costs. These platforms handle the basics while meeting HMRC requirements, though you’ll trade some advanced features for that cost savings. For businesses committed to their spreadsheet workflows, 123 Sheets provides a purpose-built bridge to compliance without forcing you to abandon familiar tools.

Platform preferences matter more than many businesses initially realise. Apple-centric operations will find EasyBooksApp’s iOS focus beneficial, while companies that manage finances primarily through mobile devices will appreciate ANNA Money’s app-based approach. Growing businesses with more complex requirements typically benefit from cloud solutions like Clear Books or IRIS KashFlow, where multi-user access and broader feature sets support expanding operations.

Budget consideration remains essential in your decision process. The pricing spectrum runs from genuinely free options to subscription services reaching nearly £50 monthly. What matters isn’t finding the cheapest solution, but the one offering the right value for your specific tax situation. A thorough assessment of your transaction volumes, user needs, and required features helps avoid overpaying for unnecessary capabilities or discovering critical gaps too late.

Integration capabilities vary dramatically between these platforms. ANNA Money’s e-commerce connections benefit online sellers, Clear Books‘ banking integrations streamline financial management, and IRIS KashFlow‘s practice tools support accountants managing multiple clients. These connectivity differences affect your daily workflow efficiency and deserve careful attention during evaluation.

The 2026 deadline for Making Tax Digital for Income Tax Self-Assessment might appear distant, but establishing effective digital tax processes now prevents scrambling later. Early adoption gives you time to optimise procedures, train staff, and ensure your tax management becomes a business strength rather than a compliance burden. The right MTD software doesn’t just satisfy HMRC requirements – it transforms tax management from a necessary hassle into a streamlined part of your business operations.