Move over spreadsheets, there’s new software in town

The team at Sampson Fielding on their way to meet clients

Which MTD software is right for you?

With Making Tax Digital for Income Tax now live and the first submission deadline (August 7) fast approaching, one of the most common questions we are hearing from clients is:

“What software should I actually be using?”

The honest answer is that there is no single “best” platform.

The right setup depends on your situation, how confident you are with technology and how complicated your income is. A sole trader with a handful of invoices each month probably does not need the same software as a landlord with multiple properties or a growing business managing payroll, VAT and several income streams.

That is why we are spending time helping clients choose software that genuinely works for them, rather than pushing everyone towards the same system simply because it is popular.

For some people, simple is better. For others, investing in a more powerful accounting platform can save a huge amount of time and stress later on.

MTD software for sole traders

For many sole traders and freelancers, ease of use is usually the priority.

If you are currently relying on spreadsheets or bank statements to prepare your tax return each year, Making Tax Digital will inevitably mean moving towards a more structured process.

For most sole trader accountant clients, the goal is not becoming an expert in accounting software. It is staying organised, keeping records up to date and making quarterly reporting more manageable. The software can help with invoicing, receipt capture and tax estimates.

When choosing Making Tax Digital sole trader software, simplicity is often more important than having every possible feature.

Key players:

FreeAgent

FreeAgent is one of the strongest options for sole traders and freelancers who want something straightforward and user-friendly.

Its simple dashboard, easy invoicing and expense tracking works particularly well for consultants, freelancers and service-based businesses who want visibility without complexity.

Coconut

Coconut is a good option for people who want bookkeeping and banking to feel more connected and automated.

For people moving away from spreadsheets for the first time, this can feel like a more manageable step with strong banking integration and less intimidating than traditional accounting software. 

MTD software for growing businesses

As businesses grow, software becomes about far more than compliance.

Business owners often need better visibility over cash flow, profitability, payroll and VAT, as well as something that can scale with the business over time.

This is where more sophisticated bookkeeping and accounting platforms can work particularly well, especially when properly integrated from the start.

For ambitious SMEs and founder-led businesses, good accounting software should support better decision making, not simply produce year-end numbers.

We often find the real value comes from having accurate, up-to-date financial information that allows business owners to act earlier and plan with more confidence.

Key players:

QuickBooks

QuickBooks is another strong option for growing businesses, particularly those wanting robust reporting and operational functionality.

Its sound reporting and automation features means it is widely used and well supported. For some businesses, the platform can feel more detailed than lighter platforms.

Xero

Xero remains one of the strongest all-round accounting platforms for ambitious SMEs and founder-led businesses.

With its good ecosystem for payroll, expenses and forecasting, strong integrations and reporting, it works particularly well for businesses wanting more real-time financial visibility.

Making Tax Digital for landlords

Landlords are one of the groups most affected by Making Tax Digital for Income Tax.

If you own multiple properties, keeping track of rental income, mortgage interest, repairs and allowable expenses through spreadsheets can quickly become difficult once quarterly reporting begins.

Some larger portfolios may still benefit from broader accounting software such as Xero depending on the complexity of the structure.

As property accountants and personal tax advisors, we are increasingly helping landlords review not only their software, but also the wider structure of their property affairs ahead of the new reporting requirements.

Key players:

Hammock

Hammock is specifically designed for landlords and property income management.

Designed around rental property tracking with useful portfolio visibility, it works well for landlords who want something more tailored than general accounting software.

Landlord Studio

Landlord Studio is another strong option for property owners managing multiple properties and expenses.

For landlords new to digital bookkeeping, the property specific reporting, document and receipt storage make it feel more intuitive than broader accounting platforms.

Can you still use spreadsheets under MTD?

A lot of people are asking whether spreadsheets are still allowed under Making Tax Digital.

In some cases, yes.

Bridging software can allow certain taxpayers to remain compliant without moving fully onto an accounting software.

For clients with relatively straightforward affairs who are comfortable using spreadsheets, this can still be a practical option.

The important thing is making sure the process is reliable, compliant and sustainable in the long term. There is an argument that moving away from spreadsheets is inevitable, but for those who want to stick with them.

Key players:

Vital Tax

This is a Making Tax Digital compliant bridging solution. It allows you to submit income tax quarterly updates directly from an Excel spreadsheet, designed for both self employed individuals and landlords.     It has a   simpler and more affordable approach to MTD for Income Tax than broader accounting platforms like Xero or QuickBooks. 

Absolute Tax

An affordable solution enabling taxpayers to comply with MTD for Income Tax, designed not to require expensive bookkeeping software or force people to change the way they work — allowing users to continue managing their records as they always have, whilst meeting their new HMRC obligations with minimal disruption and cost. 

GoFile

GoFile is another low cost option for clients wanting a lightweight approach to MTD compliance.

For some landlords and sole traders, the simple submission process may be enough without introducing a full bookkeeping platform.

The software is only part of the answer

Making Tax Digital is often presented as a software decision. In reality, it is more about process, organisation and visibility.

At Sampson Fielding, we work with individuals, landlords and businesses across Central London and beyond, from sole traders and property investors to founder-led SMEs and established companies.

As Chartered Accountants and Tax Advisors, we help clients choose software that suits their situation, make sure it is implemented properly and support them in using it day to day.

Because good accounting software should make life easier — not create more admin.