Both Neatly and QuickBooks are HMRC-compatible MTD software. Both will keep you out of penalties. But that's where the similarity ends. If you're a sole trader looking for the simplest path to MTD compliance, here's an honest comparison.
| Feature | Neatly | QuickBooks |
|---|---|---|
| Price | £29/month | £12–£35+/month |
| MTD ITSA compliance | ||
| AI transaction categorisation | ||
| Bank connection | ||
| Quarterly filing | ||
| Setup time | ~5 minutes | 30–60+ minutes |
| Accounting knowledge needed | None | Basic bookkeeping knowledge |
| Best for | Solo traders who want autopilot MTD | Established businesses with accountants |
| Inventory management | ||
| Multiple employees |
If you'd rather spend five minutes setting up software than learning bookkeeping, Neatly is built for you.
QuickBooks is a full accounting platform. It does more — but requires more from you or an accountant to use it properly.
This is the single biggest practical difference for sole traders.
Neatly connects to your bank and reads every transaction. It categorises income and expenses into HMRC's required categories automatically — no bank rules to set up, no manually sorting receipts. When it's time to file quarterly, your records are already in order.
You categorise each transaction yourself, or set up bank rules to help. This is fine if you know what you're doing. If you don't, it's easy to miscategorise expenses — which creates problems at year-end.
One simple price. Includes bank connection, automatic categorisation, quarterly filing preparation, and MTD compliance. No add-ons to pay for. No surprises. For most sole traders, £29/month covers everything you need.
The £12/month Simple Start plan has limited features. Full MTD compliance typically requires the £25–£35/month Simple Cash or Plus plans. Add an accountant, and costs climb quickly. Hidden extras include bank connections, advanced reports, and multi-currency.
Connect your bank, confirm your income, done. Neatly is designed for people who've never done bookkeeping before. No training required.
You'll need to set up your chart of accounts, add bank connections, configure tax rates, and learn where things live. QuickBooks has a steeper onboarding curve. The good news: there's more documentation and accountants who know it.
Neatly keeps your records current throughout the quarter. Before each deadline, it summarises your income and expenses so you can review and confirm — filing takes a few minutes. You stay in control without doing the bookkeeping.
QuickBooks gives you the tools to prepare your own quarterly submission. That means keeping records updated throughout the quarter, categorising transactions, and submitting via HMRC's API directly from QuickBooks. Great if you know what you're doing; daunting if you don't.
Not sure if you're fully MTD-ready? Download our 15-step checklist — used by over 500 sole traders to get compliant before their first deadline.
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