What software should you use for Making Tax Digital for Income Tax?

Date

12 Jan 2026

What software should you use for Making Tax Digital for Income Tax?

Making Tax Digital (MTD) for Income Tax marks a major change in how sole traders, the self-employed and landlords manage their tax affairs. With the deadline of April 2026 fast approaching, we would advise staying informed and preparing now to ensure compliance.

Choosing the right software is essential for complying with Making Tax Digital for Income Tax and ensuring a smooth transition.

The right solution should not only meet HMRC requirements but also align with your business needs - helping you simplify tax management and take full advantage of the benefits digital technology offers.

Why do you need MTD-compatible software?

MTD requires taxpayers to keep digital records and submit income tax information directly to HMRC through software that is compatible with their system. This means traditional spreadsheets or paper records alone won’t meet the requirements. Using MTD-compatible software not only keeps you compliant but also streamlines your tax management.

What to look for in MTD software

Choosing the right software depends on your unique circumstances, and we’ve outlined some key factors to consider:

The software must be HMRC recognised and fully compatible with Making Tax Digital for Income Tax.

A clear, intuitive interface makes record-keeping and submissions less stressful.

Ensure it supports comprehensive income and expense tracking.

Consider your budget but weigh cost against features and support.

If you use accounting software or payroll systems, look for compatibility.

Helpful reports and summaries can provide insights into your tax position.

Good customer service and educational resources can ease your transition.

Spreadsheets and MTD for Income Tax

If you currently keep digital records in spreadsheets, you don’t necessarily need to switch immediately. Some bridging software solutions exist that allow you to submit the required information to HMRC without adopting a full accounting platform right away. However, moving to dedicated MTD software sooner rather than later is advisable for accuracy and efficiency.

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Luke Quince

Tech & Process Leader

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