Not all "MTD-compatible" software is built for the same person. Here's how the four most common options stack up on the things that actually matter for MTD for Income Tax.
| Feature | FreeAgent | Xero | QuickBooks | Hammock |
|---|---|---|---|---|
| Good for sole traders | ✅ | ✅ | ✅ | ❌ |
| Good for landlords | ⚠️ Basic | ⚠️ Needs setup | ⚠️ Needs setup | ✅ Built for it |
| Per-property income splitting | ❌ | ⚠️ Manual | ⚠️ Manual | ✅ Automatic |
| Bank feeds | ✅ | ✅ | ✅ | ✅ |
| Invoicing built in | ✅ | ✅ | ✅ | ❌ |
| Typical price band | £ | ££ | ££ | £ |
⚠️ means the feature exists but isn't the software's core focus — it usually takes more manual setup to get right.
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Check my status →How to actually decide
You're a sole trader with no rental income
FreeAgent or Xero cover this well. FreeAgent tends to suit simpler, single-income setups; Xero scales better if you expect to grow, hire, or need more advanced reporting.
You're a landlord, no self-employment income
Hammock is built specifically around this — automatic per-property categorisation matters more once you're submitting quarterly rather than annually. General accounting software works but usually needs manual setup to split income by property correctly.
You're both self-employed and a landlord
This is the trickiest combination. Xero or QuickBooks can handle both income types in one place, but check the property side carefully before committing — it's often the weaker part of general accounting software.
Don't just compare software — see if you're actually affected first
All of this only matters once you know your own threshold and start date. See our sole trader checklist or landlord guide, or run the checker directly.