Questions and Answers
Making Tax Digital for income tax – what software is available software?
I understand that HMRC don’t provide software for Making Tax Digital (MTD) for income tax, so how do I find the right software for my business?
Last updated 6 Jul 2026 | First published 6 Jul 2026
By Helen Wood, CA 3 min read
Making Tax Digital
Self Employed
Online Accounting
Landlords
You are correct, HMRC has not created its own software for MTD for income tax but there are lots of commercial software solutions available. They include:
- full software packages which cover all your bookkeeping, accounting and tax needs
- free software you can download online or with fee-paying bank account packages, and
- bridging software to send HMRC figures from spreadsheets you have created in-house.
Here we answer some of the common questions we have received.
Which software is useful for sole traders? There seem to be a lot of options out there and I’m unsure what would best meet my needs.
TaxAssist Accountants partners with QuickBooks, Xero, Dext and Hammock. QuickBooks and Xero are full bookkeeping and accounting solutions, and have MTD for income tax compliant packages, Dext is a receipts and expenses solution and can be connected to QuickBooks and Xero. Hammock has been designed specifically for landlords.
You can watch a webinar below in which we explained how to choose your MTD for income tax solution and answered lots of questions on software.
Does MTD-compliant software give reminders of when to send in the quarterly reporting?
Yes, some software solutions will give you reminders of your MTD for income tax deadlines and obligations. For instance, QuickBooks will sync with your HMRC account, pull through your MTD for income tax deadlines, and you can set notifications to remind you of upcoming deadlines. Xero gives you a dashboard of all your MTD tax obligations and deadlines.
Where can I get the software from?
MTD-compliant software solutions are available online from the various technology companies who provide bookkeeping and accounting software. However, if you are unsure about which package you need or need some hands-on training in how to use the software, speak to an accountant for advice. TaxAssist Accountants can advise you on the right package, set you up and show you how to get the most out of the software.
If my accountants are doing quarterly submissions and I'm doing my tax return, do I have to use the same software my accountant is using?
Ideally, yes, you would be using the same software. Your accountant will need access to your business’ software in order to pull together and file your quarterly updates with HMRC.
Is there software that can combine sole trader income and landlord income together in the same system, so we don't need two different software solutions?
Yes, many software solutions will allow you to do this. Speak to your accountant to ensure you choose the right package to ensure you can keep your bookkeeping records separate easily for your two businesses and to ensure filing two quarterly updates is a smooth process.
How can I record my expenses easily with these software packages?
Dext is a great software solution for compiling expenses and recording receipts digitally. It also integrates with QuickBooks and Xero.
I have a monthly bookkeeping excel spreadsheet which I save and send to my accountant with receipts and invoices at the end of the tax year. Will this stay the same but I just send it quarterly or will I need to use new software?
There are bridging solutions available which allow you to continue using spreadsheets to record your bookkeeping records but send that information to HMRC in a form they can receive.
However, it may be a suitable time to explore online bookkeeping solutions with your accountant as they could be more efficient, freeing up more of your time for other parts of your business.
Need help choosing Making Tax Digital software?
Contact TaxAssist Accountants for a free, no-obligation consultation to get a fixed fee quote
Or contact usFrequently Asked Questions
Yes. If you authorise an accountant as your agent, they can use their own Making Tax Digital (MTD)compatible software to submit quarterly updates on your behalf. The same deadlines apply. Using an accountant means you can focus on running your business while ensuring your quarterly updates figures are accurate, categorised correctly, and submitted on time.
You need software that is recognised by HMRC as compatible with Making Tax Digital (MTD) for income tax. HMRC maintains an up-to-date list of compatible software products on GOV.UK, including a personalised software finder tool. Compatible software must be able to create and store digital records of your income and expenses, submit quarterly updates directly to HMRC, and support your end of year tax return submission. Bridging software is also available if you prefer to continue using spreadsheets. It connects your existing records to HMRC's systems. A TaxAssist Accountant can help you choose the right solution for your business.
Making Tax Digital (MTD) is HMRC's programme to digitalise the UK tax system. MTD for VAT is already mandatory for all VAT-registered businesses. From 6th April 2026, MTD for income tax became mandatory for sole traders and landlords with annual income above £50,000. This threshold will fall to £30,000 in April 2027 and £20,000 in April 2028. Affected businesses must use HMRC-recognised software to keep digital records and submit quarterly income and expense updates to HMRC. If your income is below the current threshold, you are not yet required to comply, but adopting digital tools now is recommended to avoid a last-minute scramble.
Last updated 6 Jul 2026 | First published 6 Jul 2026
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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