MTD Software Assessment
For individuals and accountants - answer seven questions to find out whether bridging software or full bookkeeping software is the better fit for you or your client, then compare aligned.tax, Xero, QuickBooks and FreeAgent side by side.
Do you, or does your client, need Xero or QuickBooks for MTD - or will bridging software do?
One of the most common questions when preparing for MTD is whether you, or every in-scope client, needs to move onto cloud bookkeeping software like Xero, QuickBooks, or FreeAgent. The short answer: no. HMRC requires MTD-compatible software to keep digital records and submit quarterly updates - but it does not mandate any specific type. Bridging software that connects existing spreadsheets to HMRC's API is a fully compliant route.
Toggle each question to see a recommendation.
This is a general guide to help think through software options. It is not tax or professional advice. The right choice depends on specific circumstances.
aligned.tax vs Xero vs QuickBooks vs FreeAgent - what each covers
| Feature | aligned.tax (bridging) | Xero | QuickBooks | FreeAgent |
|---|---|---|---|---|
| MTD ITSA quarterly filing | Yes | Yes | Yes | Yes |
| Works with existing spreadsheets | Yes - no workflow change | No - requires data migration | No - requires data migration | No - requires data migration |
| Bank feeds | No | Yes - automatic | Yes - automatic | Yes - automatic |
| Invoicing | No | Yes | Yes | Yes |
| Payroll | No | Varies by plan | Varies by plan | Yes (included) |
| Multi-client / agent support | Yes | Yes (practice plans) | Yes (accountant tier) | Yes (practice dashboard) |
| Typical price | Free | From around £15/month - check current pricing | From around £14/month - check current pricing | From around £19/month - check current pricing |
| Data lock-in | Data stays in your files | Data held in vendor's cloud | Data held in vendor's cloud | Data held in vendor's cloud |
| Onboarding effort | Low - upload existing spreadsheet | High - data migration required | High - data migration required | High - data migration required |
Pricing and feature notes checked June 2026 against provider websites - see providers for current details.
Ready to file MTD quarterly updates from your existing spreadsheets? aligned.tax is bridging software for sole traders, landlords and accountants - free for individuals, with the first three clients free for practices.