FileThat vs Monzo Business (MTD for Income Tax) for Making Tax Digital

FileThat

FileThat has no subscription. Keeping digital records is free, and you buy a credit for each new quarterly update or VAT return with figures in it, at £3.99, £4.99 or £5.99 depending on your qualifying income across all your businesses. The first 500 individuals to connect to HMRC keep £3.99 for good, and until FileThat has figures to work out your band you pay the lowest price, so the price you end up paying may be higher than the cheapest one shown. We show each band as a monthly equivalent of four quarterly updates for one business. We leave out the £3.99 band from our prices because people who must use MTD have qualifying income over £50,000 now and over £30,000 from April 2027, so the bands that apply to them start at £4.99. Each trade, your UK property and any foreign property are separate businesses with their own quarterly updates, so a landlord who is also self-employed pays twice, although FileThat caps an individual's spending at £50 in a tax year, with £55 the most charged. The annual submission, final declaration and amendments are free. The 4 free credits on sign-up cover the first year of quarterly updates for one business, and FileThat's pricing page says this is why HMRC's software finder lists it with a free version. After that first year there is no lasting free plan for filing, so we do not count it as a free tier. FileThat says all your UK lets are kept apart under nicknames and filed as one property business, and that it does not split figures between joint owners, so each owner files their own share. It says a UK holiday let is filed as part of the ordinary property business now that the furnished holiday lettings rules have ended. Bank transactions come from a CSV statement you upload, as FileThat deliberately does not use Open Banking, so we do not count that as a bank feed. An accountant can sign up as an agent and file for you, and FileThat also files from a spreadsheet template if you prefer. It is a website that works in a phone's browser, and we did not find mobile apps. None of the pages we read says whether VAT is added to FileThat's own prices. We checked this on 25 October 2026.

Monzo Business (MTD for Income Tax)

Monzo's MTD tool is part of the Monzo Business current account rather than a separate product, so you need to open that account to use it. Monzo says the tool comes with all three plans as standard and handles digital records, quarterly updates and the end of year tax return for sole traders and landlords, which makes the free Lite plan enough for MTD on its own. Pro and Team add banking extras such as Tax Pots, invoicing and pulling in transactions from other accounts. Monzo's plans page says only UK sole traders and limited company directors can apply for an account, while its MTD page also mentions landlords, so a landlord with no trading business may want to check eligibility with Monzo before applying. Monzo also says the tool does not support the accruals basis, VAT returns or working with an accountant inside the tool. We did not find anything about furnished holiday lets, jointly owned property, several properties or mileage. Monzo does not say whether its plan prices include VAT. The tool runs in the Monzo app for iPhone and Android, and we did not find it listed among the things the lighter web app can do. We checked this on 25 October 2026.