Xero Alternative for MTD ITSA
A simpler way to file Making Tax Digital returns
Xero is a powerful cloud accounting platform. It handles invoicing, bank feeds, expense tracking, inventory, and MTD ITSA. But if you're a landlord or sole trader who only needs to submit quarterly Making Tax Digital updates, Xero can feel like overkill -and at £15–£30+ per month, the cost adds up. If you're looking for a Xero alternative that focuses purely on MTD filing, Quartax is built for you.
When Xero makes sense
Xero shines when you need full double-entry bookkeeping, multi-currency, payroll, inventory, and hundreds of integrations. If you run a growing business with complex accounting needs, Xero is an excellent choice. Many accountants recommend it. But for a landlord with a few rental properties or a sole trader with straightforward income and expenses, the full accounting suite may be more than you need.
Why consider a Xero alternative?
You might want a Xero alternative if you only need MTD compliance, don't want to link your bank account, prefer a simpler workflow, or want to reduce costs. Xero requires bank feeds or manual data entry; Quartax lets you upload a CSV from your bank when you're ready. No ongoing connection, no extra integrations. You export your statement, upload it, review AI-categorised transactions, and submit to HMRC. Done.
Quartax vs Xero for MTD
Quartax is MTD-only. No invoicing, no full general ledger -just upload, review, submit. We support Barclays, Lloyds, HSBC, NatWest, Monzo, Starling, Halifax, and Santander. AI categorises transactions against HMRC expense categories. £39/year for one income source. First return free. Compare that to Xero's monthly fees and you may save hundreds per year. Both submit directly to HMRC via the MTD API. If you need full accounting, stick with Xero. If you need MTD filing without the rest, Quartax is the Xero alternative built for that.
Making the switch
Switching from Xero to Quartax for MTD is straightforward. You don't need to migrate data -Quartax works quarter by quarter. Connect your HMRC account, upload your bank CSV for the quarter, review the categorisation, and submit. You can keep Xero for other purposes and use Quartax purely for MTD, or move entirely to Quartax if MTD is all you need. Either way, you'll have a simpler, more focused MTD workflow.
Bank feeds vs CSV upload
Xero relies on bank feeds -you connect your account and transactions sync automatically. Some people prefer not to link their bank for security or simplicity. Quartax uses CSV upload: you export your statement from your bank's app or website and upload when you're ready to file. No ongoing connection, no sync issues. We support Barclays, Lloyds, HSBC, NatWest, Monzo, Starling, Halifax, and Santander. If you value control over when and how your data is shared, the CSV approach may suit you better.
Before you start
You'll need these in place before connecting Quartax to HMRC. Not sure if you need MTD? Check HMRC's eligibility tool.
- A Government Gateway account - you use this to log into HMRC services. If you don't have one, create one at gov.uk.
- Self Assessment registration - you must be registered for Self Assessment with HMRC. If you're not, register at gov.uk.
- MTD ITSA enrolment - HMRC must have enrolled you in Making Tax Digital. You'll receive a letter or can check your Personal Tax Account.
- A bank statement CSV - download your transactions for the quarter from your bank's app or website. Make sure it covers only the quarter you're filing for.
Not sure if you're ready? Email us at team@quartax.co.uk and we'll help.
Ready to try a simpler Xero alternative?
Quartax: upload, review, submit. First return free.