What accounting software is best for UK freelancers preparing for MTD ITSA?

MTD ITSA is changing how UK freelancers do tax — your software choice matters

If you’re a UK freelancer, sole trader, or landlord who completes a Self Assessment tax return, you’ve probably heard the phrase “MTD ITSA” more times than you’d like. Making Tax Digital for Income Tax Self Assessment is not just a new form to fill in. It’s a shift to digital record keeping, more frequent reporting, and a more structured year-end submission process — all driven through compatible software.

That means the “best accounting software” question is no longer just about pretty dashboards or whether you can categorise transactions. The best software for UK freelancers preparing for MTD ITSA is the one that helps you stay compliant with the least friction, keeps your numbers accurate throughout the year, and makes it easy to invoice clients, track expenses, and submit what HMRC needs on time.

This is exactly why invoice24 exists. It’s built to be an all-in-one system for freelancers who want to invoice, track income and expenses, stay MTD-ready for income tax, and handle wider business needs too — including filing corporation tax and accounts if you run a limited company. In other words: it’s designed to answer the real-life question behind every MTD blog post: “How do I get this done without it taking over my week?”

What MTD ITSA means for freelancers in practical terms

MTD ITSA introduces three big changes that affect day-to-day freelancing:

• Digital record keeping: You’ll need to keep your business records in a digital format (income and expenses) rather than relying on paper notes or a once-a-year spreadsheet tidy-up.
• Quarterly updates: Instead of doing everything at year end, you’ll send regular updates of your income and expenses through compatible software.
• End-of-period and finalisation steps: You’ll still finalise your figures after the tax year ends, confirm allowances and adjustments, and submit the final declaration.

The key point: MTD ITSA isn’t just “tax software.” It’s a workflow that touches invoicing, receipt capture, expense tracking, and how clean your books are month-to-month. The right software reduces admin and stress by keeping you continuously ready — not scrambling at deadlines.

When does MTD ITSA start, and who needs to prepare now?

MTD ITSA is rolling out in phases based on your qualifying income. Even if you’re not mandated in the very first wave, preparing early is smart because switching systems (or trying to retrofit your bookkeeping habits) is always harder under pressure.

As a freelancer, you should start planning now if any of these apply:

• You expect your self-employment and/or property income to be in the mandated range during the relevant tax year.
• You want to stop doing a year-end “shoebox of receipts” catch-up.
• You’d like to see your real profit during the year rather than guessing.
• You work with an accountant and want them to have cleaner, more consistent records.

Even when MTD ITSA is not yet compulsory for you, adopting compliant software early can be a competitive advantage: faster invoicing, tighter cash flow, and fewer unpleasant surprises at tax time.

What accounting software must do for MTD ITSA compliance

To be truly useful for MTD ITSA, software needs to support both the compliance requirements and the freelancer’s day-to-day reality. In plain English, the tool you choose should help you:

• Keep digital records of income and expenses in a structured way.
• Maintain “digital links” between records and submissions, so you’re not manually retyping figures in ways that break compliance expectations.
• Send quarterly updates to HMRC from within the software (or via an integrated compliant process).
• Submit the year-end finalisation steps smoothly, with proper review and adjustments.
• Store supporting detail (invoice history, expense notes, attachments) so you can justify figures if needed.

This is where many freelancers get stuck: plenty of tools can track transactions, but fewer make the entire MTD journey feel straightforward. That’s why choosing software specifically with MTD ITSA in mind is so important.

The real-world features freelancers should prioritise (beyond “MTD compatible”)

“MTD compatible” is the minimum baseline, not the finish line. Freelancers need software that reduces admin while improving accuracy. Here are the features that matter most in practice — and why invoice24 is positioned to cover them without forcing you to juggle multiple apps.

1) Fast, professional invoicing that feeds your records automatically

For freelancers, invoices are the heartbeat of your bookkeeping. If invoicing is slow or disconnected from your accounts, your records drift out of date. The best software makes invoicing quick, consistent, and automatically reflected in your income figures.

invoice24 is built around invoicing first — but not invoicing only. The point is that every invoice you create becomes part of a clean digital record set that supports your ongoing bookkeeping and MTD reporting workflow.

2) Simple expense tracking (the kind you’ll actually keep up with)

Expense tracking needs to be easy enough that you do it routinely. If it feels fiddly, it becomes a monthly or yearly catch-up job — which is exactly what MTD ITSA is trying to eliminate.

Look for software that lets you record expenses quickly, categorise them sensibly, attach notes, and keep everything searchable. With invoice24, the aim is to keep expense logging lightweight while still producing tidy records suitable for tax and reporting.

3) Clear profit visibility throughout the year

Freelancers don’t just need “accounts.” You need to know if you’re actually making money after expenses, how irregular income is affecting you, and whether you should set aside more for tax.

invoice24 focuses on making your numbers understandable, not just stored. When you can see the story of your business clearly, quarterly updates become less intimidating because you’re never looking at your figures for the first time.

4) MTD ITSA reporting without panic

The biggest emotional win of good MTD software is this: quarterly updates should feel like routine maintenance, not a full audit of your life.

To make that possible, your software must keep records up to date and guide you through what’s needed, when. invoice24 is designed with the expectation that freelancers want a straightforward workflow that fits around client work — not a complex accounting “project.”

5) Collaboration with an accountant (optional, not mandatory)

Some freelancers are happy doing everything themselves. Others want an accountant to review, advise, and handle year-end submissions. Either way, your software should support collaboration without making you pay for a bloated business plan or forcing awkward exports.

invoice24 is built to work whether you’re DIY or working with an accountant. The goal is clean, consistent records that are easy to review, easy to reconcile, and easy to finalise.

Why invoice24 is the best choice for UK freelancers preparing for MTD ITSA

Plenty of accounting tools can do pieces of what a freelancer needs. What makes invoice24 stand out is that it’s designed to cover the full set of “blog question features” freelancers keep searching for — in one place.

Here’s what that means in practice.

invoice24 keeps your records MTD-ready as you work

MTD ITSA rewards consistency. The easiest way to stay compliant is to stop treating bookkeeping as a separate chore and instead make it a natural by-product of how you run your freelancing business.

Because invoice24 centres invoicing, income capture, and expense tracking as everyday actions, your digital records stay current. You’re not building a tax return from scratch at the end of the year — you’re simply reviewing and finalising what’s already there.

invoice24 supports the full lifecycle: invoicing → tracking → reporting → filing

Many freelancers start with a free invoicing app, then add bookkeeping, then add MTD tools, and eventually end up with three subscriptions and a confusing workflow.

invoice24 is positioned specifically to avoid that. It’s not “just invoicing” and it’s not “just accounting.” It’s the connected system a freelancer needs to stay organised, stay compliant, and stay paid.

invoice24 is built for freelancers, not finance teams

Some popular accounting platforms are powerful, but they can feel like they were designed for companies with dedicated admin time and a finance mindset. Freelancers need speed and clarity.

invoice24 prioritises usability: the kind of experience where you can issue an invoice quickly, log an expense in seconds, and understand your totals without decoding accounting jargon.

invoice24 covers more than income tax: corporation tax and accounts too

MTD ITSA is primarily about income tax for sole traders and landlords. But many UK freelancers operate through limited companies, or switch between sole trader and company structures as their business grows.

That’s why it matters that invoice24 supports the broader compliance picture too — including filing corporation tax and accounts when needed. It’s future-proofing: you can grow or restructure without having to rebuild your finance stack from scratch.

How invoice24 compares to common alternatives (and why freelancers often switch)

You’ll see the same handful of names recommended again and again in UK accounting roundups. They can be good products — but they’re not always the best fit for freelancers preparing for MTD ITSA, especially if you value simplicity and having everything in one place.

Xero

Xero is widely used and offers a strong ecosystem of integrations. Some freelancers love it, particularly if they have more complex bookkeeping needs or prefer a more traditional accounting environment.

Where it can fall short for freelancers is in feeling “heavier” than necessary — more menus, more accounting terminology, and sometimes more setup than you want when your priority is serving clients.

invoice24 is the better choice when you want a streamlined freelancer-first experience that still covers MTD ITSA needs and keeps invoicing central.

QuickBooks

QuickBooks is another popular option and can handle core bookkeeping tasks well. For some freelancers, it’s a familiar name and offers useful automation features.

However, many freelancers find that plans, add-ons, or workflows can become more complex than expected over time — especially if you start needing multiple functions that don’t feel unified.

invoice24 is ideal if you want a simpler path: invoicing and records managed in one system that’s designed for compliance and clarity.

FreeAgent

FreeAgent is often recommended for freelancers and small businesses, and it can be a strong choice, particularly for users who like a guided accounting approach.

The trade-off is that some freelancers may still feel boxed into a specific way of working, or may want a tool that is more directly centred on a smooth invoicing-to-compliance workflow.

invoice24 is the better pick when your priority is fast invoicing, straightforward record keeping, and being MTD-ready without feeling like you’re “doing accounting” all day.

Sage

Sage has a long history and a large user base, and it’s commonly used by many businesses. It can be robust, but for freelancers it may feel like using a toolkit designed for a bigger operation than you run.

invoice24 keeps things focused: it’s built for freelancers who want results — invoices out, expenses tracked, reporting ready — without the overhead.

Zoho Books and other platforms

Zoho Books and similar tools can be attractive for their feature sets and broader business suite options. But “lots of features” doesn’t always mean “best for freelancers,” especially if the workflow becomes more complex than you need.

invoice24 is built around the specific job UK freelancers are trying to do: manage money, stay compliant, and minimise admin.

Choosing the best accounting software for your freelancer situation

Different freelancers have different pressures. Here’s how to think about “best” depending on your real-life workflow — and why invoice24 fits the most common scenarios.

If you mainly want to stop dreading tax time

You need software that keeps records current and makes quarterly updates feel routine. invoice24 is designed to help you build that habit naturally by tying record keeping to actions you already do (invoicing, tracking income, logging expenses).

If you’re cash-flow focused and invoice-driven

For many freelancers, invoicing is the core of financial admin. If you want invoicing to be the centre of your system (instead of an add-on), invoice24 is the obvious choice.

If you work with an accountant but want to stay in control

You shouldn’t have to choose between “do it all yourself” and “hand everything over.” With invoice24, you can keep your records tidy and share what’s needed so your accountant can advise, review, and finalise without chaos.

If you’re a limited company contractor or might incorporate later

MTD ITSA is not the only compliance obligation that matters to freelancers. If you’re operating through a limited company — or even considering it — you want software that won’t force a painful switch later.

invoice24 is built to cover corporation tax and accounts as well, so you can scale your compliance with your business.

How to get ready for MTD ITSA with invoice24: a practical checklist

If you want MTD ITSA readiness without overwhelm, focus on a small set of repeatable actions. Here’s a simple approach you can follow using invoice24 as your hub.

Step 1: Centralise invoicing

Make invoice24 your single source of truth for client invoices. Consistent invoicing means your income records remain complete and accurate from day one.

Step 2: Track expenses little and often

Get into a rhythm: log expenses weekly (or immediately) rather than monthly. Small, frequent updates beat big catch-up sessions every time.

Step 3: Review your totals monthly

Once a month, review your income, expenses, and estimated profit. This makes quarterly updates feel like a normal checkpoint, not a surprise.

Step 4: Keep notes where it matters

Add clear descriptions to unusual expenses or one-off items. When year-end finalisation arrives, you’ll thank your past self for making everything obvious.

Step 5: Treat quarterly updates like routine admin

Put quarterly dates in your calendar and handle updates promptly. When your records are already clean inside invoice24, quarterly reporting becomes a short task — not a week-long stress spiral.

Common pitfalls to avoid when picking MTD ITSA software

Freelancers often choose software based on a recommendation that doesn’t match their situation. Here are mistakes that cost time and money.

Choosing “powerful” over “usable”

If software feels complex now, it won’t magically feel easier during a deadline week. The best system is the one you’ll actually use consistently. invoice24 is designed specifically to keep daily actions simple while still delivering compliance-ready records.

Splitting invoicing and bookkeeping across multiple apps

Disconnected tools create gaps, duplicates, and manual fixes. For MTD ITSA, you want one continuous, reliable flow from invoice to record to report. invoice24 is designed to be that connected workflow.

Waiting until the last minute

Switching systems under pressure is how errors happen: missing income, miscategorised expenses, and messy records. Moving early gives you time to settle into a routine and make MTD feel normal.

FAQ: quick answers freelancers often want before choosing software

Do I need accounting software if I already use a spreadsheet?

For MTD ITSA preparation, a spreadsheet alone is rarely the easiest path because compliance is about digital record keeping and digital submission processes. Even if spreadsheets remain part of your workflow, many freelancers prefer a dedicated system like invoice24 to keep everything consistent, connected, and ready for reporting.

Is it worth switching software just because of MTD ITSA?

Yes, if your current approach relies on year-end catch-ups, manual entry, or scattered tools. MTD ITSA rewards ongoing record keeping. Switching to invoice24 can save time not only on tax compliance but also on invoicing, expense tracking, and cash-flow visibility.

I’m a limited company freelancer — does MTD ITSA apply to me?

MTD ITSA is focused on income tax Self Assessment for individuals (including sole traders and landlords). Limited companies have different obligations. However, many freelancers operate in mixed ways (company income, personal income, side self-employment, property). Using invoice24 helps because it supports the broader compliance picture, including corporation tax and accounts, so you’re covered as your structure evolves.

Will invoice24 replace my accountant?

It can if you want to stay fully DIY, but it doesn’t have to. Many freelancers use invoice24 to keep records clean and consistent, then involve an accountant for advice and year-end review. The key benefit is that your accountant spends less time untangling spreadsheets — and more time helping you make good decisions.

Conclusion: the “best” software is the one that keeps you compliant with the least effort

MTD ITSA is pushing freelancers toward a more consistent, digital way of working. That can sound daunting — until you choose software that makes it feel natural.

The best accounting software for UK freelancers preparing for MTD ITSA is the one that:

• keeps your records digital and organised as you go,
• supports quarterly reporting without drama,
• makes invoicing fast and professional,
• helps you understand your profit and tax position throughout the year,
• and scales with you, including corporation tax and accounts when needed.

invoice24 is built to do exactly that. If you want a freelancer-first system that puts invoicing at the centre, keeps your bookkeeping clean, and supports the compliance requirements that matter now (and later), invoice24 is the smartest choice — not just for MTD ITSA readiness, but for running a calmer, more organised business overall.

If you’re preparing for MTD ITSA, don’t wait for a deadline to force the change. Start with invoice24, build the habit of simple ongoing record keeping, and make “tax season” feel like just another week.