MTD compatible software for Brighton businesses: which one is right for you?

Making Tax Digital for Income Tax requires you to keep digital records and submit quarterly updates using HMRC-approved software. The software market has dozens of options — but most Brighton businesses and landlords will land on one of four main choices.

This guide gives you an honest comparison based on what we see working (and not working) for our clients day to day.

The four main options

Xero

Xero is our most-recommended option for limited companies, partnerships, and landlords with larger portfolios. It is cloud-based, integrates with most UK banks for automatic transaction feeds, and handles MTD for VAT and MTD for Income Tax in a single platform.

Best for: Limited companies, VAT-registered businesses, landlords with multiple properties, anyone who wants a comprehensive accounting platform.

Price: From £16/month (Starter) to £47/month (Ultimate), though most businesses need the Grow plan at around £33/month. Fitzpatrick Co clients receive a discounted rate as Xero Bronze Partners.

Not ideal for: Very simple sole traders with minimal transactions — can feel over-engineered for basic needs.

QuickBooks

QuickBooks is strong for small businesses that want good reporting and invoicing alongside MTD compliance. The Self Employed version is purpose-built for sole traders and freelancers, with a simplified income and expense tracker and mileage logging.

Best for: Freelancers, consultants, sole traders, small businesses with straightforward accounts.

Price: Self Employed from £8/month; Simple Start from £14/month. Fitzpatrick Co clients receive ProAdvisor Silver discounts.

Not ideal for: Complex businesses with inventory, multiple currencies, or detailed job costing needs.

FreeAgent

FreeAgent is particularly popular with contractors and project-based businesses. It handles invoicing, expenses, payroll, and MTD compliance in one tidy interface and is included free with NatWest, Royal Bank of Scotland, and Ulster Bank business accounts.

Best for: Contractors, agency workers, project-based freelancers, anyone who already banks with RBS/NatWest.

Price: £19/month (or free with qualifying bank account).

Not ideal for: Landlords — property-specific features are limited compared to Xero or specialist tools.

Specialist landlord software

Tools like Hammock and Landlord Studio are built specifically for property investors. They handle property-by-property income tracking, tenancy management, and MTD submissions without requiring a full accounting platform.

Best for: Landlords with one to ten properties who want property-specific reporting without an accountant-grade platform.

Price: Varies — Hammock from around £10/month.

Not ideal for: Landlords who also have self-employment income that needs to be combined with property income for MTD purposes — a full accounting platform handles this more cleanly.

Our honest recommendation by client type

• Brighton landlord with a buy-to-let portfolio: Xero or Hammock
• Freelancer / consultant earning over £50k: QuickBooks Self Employed or FreeAgent
• E-commerce business: Xero (best inventory and integration options)
• Sole trader in the trades: QuickBooks Simple Start or FreeAgent
• Limited company: Xero

What about free options?

HMRC's own online service will allow some sole traders to submit MTD updates for free, but it is basic and will not replace proper bookkeeping software for anyone running a real business. Most clients find a few pounds a month for proper software is well worth it for the time and error-prevention it provides.

We handle the software setup

For all new Fitzpatrick Co clients, we configure your MTD software, connect your bank feeds, set up the correct chart of accounts, and walk you through how to record income and expenses correctly. You do not need to figure it out alone.

Frequently asked questions