Making Tax Digital (MTD) for Musicians: The Best Software Options for 2025

Our Current Picks...

Making Tax Digital (MTD) for Musicians: What Software Should You Use?

If you're a self-employed musician or freelancer in the music industry, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is coming - and the time to start preparing is now.

Not sure which software to use for Making Tax Digital (MTD) if you're self-employed in the music industry? You're not alone.

Many musicians and music freelancers are looking for a simple, affordable way to track income and expenses that ticks the MTD boxes - without the overwhelm.

The short answer? It’s still early days, and not all providers have revealed their full offerings yet. But here’s what we do know - and a breakdown of the best options available right now to help you stay ahead of the curve.

What Is MTD for ITSA?

Starting in April 2026, if you're a sole trader earning over £50,000, you’ll need to:

• Keep digital records

• Send quarterly updates to HMRC using MTD-compatible software

Whether you're a performer, producer, tutor, tech, composer, or promoter - if you’re working for yourself, this change affects you.

No more paper notes or manual spreadsheets - unless you use "bridging software" (more on that below).

MTD-Compatible Software Options for Musicians

Here’s a round-up of the best-known (and most musician-friendly) options right now. We're listing the biggies and the tools that we're familiar with, but there are lots of other software listed on the HMRC approved software list (linked below). Do please share your own recommendations so that we can keep our Musician Community updated.

1. Xero

We use Xero ourselves and love it.

• MTD-ready

• Great for sole traders

• We offer support via webinars, blogs, and our online community

If you're not sure where to start, we even have a “Get Started on Xero” course ready for you.

We’re proud to be a Xero partner. If you’re thinking about moving your accounts online, Xero is one of our top recommendations for musicians and freelancers. It’s intuitive, HMRC-recognised, and makes keeping on top of your finances so much easier.

👉 Check out Xero here (this is our partner link – if you sign up through it, we may earn a small commission, at no extra cost to you).

2. Coconut

A lot of musicians and freelancers are fans of Get Coconut.

• Designed for sole traders

• Intuitive app-based system

• Offers bank feeds and simple categorisation

Many music freelancers like how intuitive it feels on mobile.

3. FreeAgent (via Mettle)

Free if you open a Mettle bank account (part of NatWest).

• MTD-compatible

• Solid income/expense tracking

• Excellent value for small budgets

Perfect if you’re just getting started and want to keep costs low.

4. QuickBooks

A well-known option that works well for those with multiple gigs and varied income.

• Mileage tracking

• Bank feeds

• Good for freelancers with relatively simple finances

5. Sage

We've noticed that they now have a free version available

• The free version is basic, with limited features available

• May suit those looking for a no-frills option

Coming Soon

This next cohort are currently MTD-VAT compliant, but we have seen that they are stating that they will be MTD-ITSA ready. We can't recommend just yet, but they're worth keeping in consideration also.

• Pandle

• Zoho

• Freshbooks

• Limebooks

Want to Stick With Spreadsheets?

If you're spreadsheet-savvy, bridging software may let you keep using Excel to record income and expenses, and then submit quarterly figures to HMRC.

BUT:

• These tools haven’t all confirmed pricing or ease-of-use

• May be cheaper but riskier if you're not confident with spreadsheets

Our Advice?

If you have an accountant, ask them what software they recommend. Every firm has its favourites - and using the same one can save you headaches.

If you don’t?

Try a demo or free trial of a few tools. Look for something intuitive that fits your workflow and music income setup.

Stay in the Know

Things are changing fast. That’s why we’re creating a dedicated MTD support hub for musicians.

Until then:

• Join our newsletter for real-world finance tips

• Check out our free community: The Business of Music

• Explore our library of free and paid courses

• Watch our latest Xero webinar (coming soon inside the community)

• Check out the advice from HMRC in their Software Recommendation Guide

Final Thought

Whether you're juggling tour fees, online lessons, session gigs, or PRS payments, switching to digital accounting doesn’t need to be overwhelming.

The right software can save you time, reduce stress, and help you feel more in control of your money. And as always, we’re here to help you stay one step ahead.