Questions and Answers
Is my software Making Tax Digital-compliant?
I use some bookkeeping software. I think Making Tax Digital is going to apply to me. How do I go about checking if my software is Making Tax Digital-compliant?
Last updated 3 Jul 2026 | First published 1 Mar 2019
By Helen Wood, CA 1 min read
Making Tax Digital
Bookkeeping
Self Employed
Online Accounting
Limited Companies
Making Tax Digital for VAT has applied to all VAT-registered businesses. For VAT periods starting on or after 1st April 2021, VAT-registered businesses have been required to record all transactions digitally and file their VAT returns using MTD-compatible software. Inputting the figures directly into the Government Gateway is no longer an option under MTD for VAT.
HMRC has a tool to search for compatible software, which is available here.
Income tax
From 6th April 2026, the first group sole traders and landlords were mandated to join MTD for income tax. Further groups will be obliged to join MTD in 2027 and 2028. For information about the qualifying criteria see our Questions and Answers on the topic here.
For digital bookkeeping and accounting solutions, TaxAssist Accountants works with QuickBooks, Xero and for receipts, Dext. There are different packages and modules within each software package including those for MTD for VAT and income tax. Your accountant can help advise you on the right package. For more information, a recording of our webinar 'How to choose software for Making Tax Digital for income tax' is available to watch below.
There are also bridging software solutions which allow you to continue using existing spreadsheets but communicating with HMRC’s systems. This software allows you to create the required digital records, make quarterly updates and file your end of year tax return, which replaces the self-assessment tax return for MTD for income tax users.
Last updated 3 Jul 2026 | First published 1 Mar 2019
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Helen Wood, CA
Helen is a qualified chartered accountant (CA) and joined TaxAssist in 2025 following three years as a freelance content writer for clients in the tax and accounting publishing sector. Prior to this, She spent 17 years at Big Four and Top 10 accountancy firms. Helen writes clear and helpful articles on tax and accounting for businesses and individuals.
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