HMRC will not be providing any free software for Making Tax Digital reporting for businesses and sole traders, and all the major UK software providers have stated since the outset of the HMRC digitisation project that they will not provide free software.
The 3 main things you will need to consider when purchasing your software are;
- The price: Decent Accounting products can cost £1000s for large businesses, as you often have to pay per employee. On the other hand though, an excellent product like Xero could cost a sole trader around £10 per month which includes the use of a wealth of features that would help most businesses perform better.
- Ease of use/Training: Do you have the time/skills to learn how to use your software correctly? Even a free Spreadsheet package which most people consider basic, can do amazing things if the user has had training.
- Performance: Does your chosen Software package do the job well? If they can legally sell Windows 10 OS with all its faults, companies can probably get away with selling poor performing accounting software.
Making Tax Digital Compliant Software
Below are a list of the most popular and well regarded software packages;
Xero: A pay monthly service that is easy to use with a wealth of features. Although training may be required to fully benefit from this software. Read our Xero review.
Quickfile: Claims to be free for most Small/Medium sized businesses.