Tools and providers
Part of Before you choose creator tax tools and providers, check these criteria
Which creator tax software should you pick for UK work?
A buyer's guide to creator tax software selection in the UK, covering Making Tax Digital, company duties, provider checks and a comparison table of tool types.
What to take away
- Most sole traders below the Making Tax Digital for Income Tax threshold can start with Coconut or FreeAgent, at roughly £10 to £40 a month, and both appear on HMRC's MTD ITSA software list.
- Above the threshold, choose Xero or QuickBooks Online so platform statements and brand invoices sit in one set of digital records.
- Limited company directors should shortlist FreeAgent or Xero, and keep responsibility for statutory duties even when an accountant files.
- HMRC's MTD ITSA list includes FreeAgent, Xero, QuickBooks Online, Sage Business Cloud Accounting, Coconut and GoSimpleTax, which is a different list from MTD VAT recognition.
- Prices below were checked in September 2026. Confirm them before you buy, because plans change.
Match the tool to your filing obligation
The software choice follows your filing obligation, not the dashboard. A sole trader below the MTD ITSA threshold may only need invoicing and a year-end summary. A limited company director needs accounts, a confirmation statement and a corporation tax return. Work out which applies before comparing features.
If you mainly need invoices that brands pay against, the guide to invoicing software for UK content creators explains what to test before you commit.
Decision path by creator type
- Sole trader below the MTD ITSA threshold, with income at or under £50,000. Start with Coconut or FreeAgent. Coconut suits Self Assessment filing at roughly £10 to £20 a month. FreeAgent is free if you bank with NatWest, RBS, Ulster Bank or Mettle.
- Sole trader above the threshold. Choose Xero or QuickBooks Online. Both import bank feeds and platform statements, and both are HMRC-recognised for MTD ITSA. Budget roughly £20 to £50 a month.
- Limited company director. Shortlist FreeAgent or Xero. You still carry director duties yourself, as the director duties guidance sets out, so pick a tool your accountant can access.
One comparison table for every named tool
The table below merges the two overlapping lists from the earlier version. Each provider appears once, with cost, best-for, watch-out and MTD ITSA status. Prices checked September 2026.
| Tool | Best for | Typical cost (checked September 2026) | Watch out for | MTD ITSA recognised |
|---|---|---|---|---|
| FreeAgent | Sole traders and limited companies banking with NatWest, RBS, Ulster Bank or Mettle | Free with those accounts, otherwise £20 to £40 a month | Free route depends on your bank | Yes |
| Xero | Creators with several income streams, bank feeds and add-ons | £20 to £50 a month by plan | Payroll and receipt tools cost extra | Yes |
| QuickBooks Online | Sole traders wanting simple invoicing and tidy records | £15 to £50 a month by tier | Cheaper tiers cap users and features | Yes |
| Sage Business Cloud Accounting | Small limited companies needing bookkeeping and MTD VAT | From £15 to £40 a month | Some reports sit in the higher tier | Yes |
| Coconut | Sole traders filing Self Assessment and MTD ITSA | £10 to £20 a month | Thin on limited company features | Yes |
| GoSimpleTax | Filing Self Assessment or MTD ITSA without full bookkeeping software | Around £30 per return, MTD sold separately | Records still kept elsewhere | Yes |
| Pandle | Invoicing-first sole traders with a handful of brand deals | Free plan, paid features from £7 a month | No filing, no year-end reports | No |
| Dext | Receipt and supplier invoice capture | £20 to £40 a month by document volume | Does not file a return | No |
| Crunch | Creators who want filing outsourced to an accountant | £80 to £250 a month | Less visibility of your own numbers | Via accountant |
| FreshBooks | Simple invoicing for sole traders | £10 to £25 a month | No UK filing | No |
HMRC recognition for Making Tax Digital
HMRC keeps separate lists for MTD VAT and MTD for Income Tax. A tool on one list is not automatically on the other.
As of September 2026, HMRC's MTD ITSA software choices include FreeAgent, Xero, QuickBooks Online, Sage Business Cloud Accounting, Coconut and GoSimpleTax. Pandle, Dext and FreshBooks are not on that list. Crunch's MTD ITSA filing depends on the software behind its accountancy service.
Costs, trials and exit terms
A clean dashboard is worth less than a clean export. Test the data you can get out before you sign an annual licence.
Ask how the tool handles a refund, a chargeback and a platform correction. Ask who owns the data if you leave. Ask what happens at year end if you have not reconciled everything. Run a short trial with your own platform statements and brand invoices.
For a fuller map of provider types, see the creator tax tools and supplier guide, which sets out the 2027 picture across bookkeeping, payroll and filing.
Income from YouTube Shopping and similar programmes arrives in a different format from your own invoices. The YouTube affiliate programme help page explains the reporting you receive.
Check import support before you buy. Also ask for support response times and a trial period long enough to cover one full month of transactions. Ask for the export format too, because a locked-in file format costs more than a monthly fee.
Common questions
Which tool suits a sole trader below the MTD threshold?
Coconut or FreeAgent. Coconut is built for Self Assessment and MTD ITSA at roughly £10 to £20 a month. FreeAgent is free if you hold a NatWest, RBS, Ulster Bank or Mettle business account, otherwise £20 to £40 a month.
What if I run a limited company and earn personally?
Plan for two workflows. FreeAgent or Xero covers company accounts, while Coconut or GoSimpleTax suits your personal Self Assessment. An accountant can coordinate both. The creator tax vendor due diligence guide covers data handling and exit terms before you sign.
How do I handle dollar platform income?
Record it in pounds using a consistent conversion approach. Xero, QuickBooks Online and FreeAgent support multi-currency entry and store the rate used. Check your own tool for the same before you commit.
Do advertising rules affect my software choice?
Indirectly. If your brand deals depend on disclosure, the ASA resource library is the starting point. The tool you pick should let you tag ad income separately.
