Best MTD-compatible software
To comply with Making Tax Digital for Income Tax you’ll need software that keeps digital records and files directly with HMRC. There’s no single “best” product: it depends on how you work. Here’s what actually matters when you choose, and the shortcut most of our clients take.
Reviewed July 2026. Figures are correct at the date of review. Always check GOV.UK for the latest.
The short answer
The best MTD-compatible software is the one that fits how you work and is recognised by HMRC. HMRC keeps an official list of compatible products, and options range from full accounting packages to simple “bridging” tools that connect a spreadsheet to HMRC. What matters is that it keeps your records digitally and files your quarterly updates and final declaration for you.
Two broad types
- Full accounting software: keeps your records and files with HMRC in one place, usually with bank feeds, invoicing and mobile apps. Simplest if you want everything joined up.
- Bridging software: lets you keep records in a spreadsheet and file to HMRC through a connector. Handy if you have an existing spreadsheet system you don’t want to change.
Both are valid for MTD. The right choice depends on how comfortable you are with software, how many income sources you have, and whether you’d rather manage it yourself or hand it over.
What to look for
- On HMRC’s compatible list: non-negotiable; check before you commit.
- Digital record-keeping: captures income and expenses, ideally with bank feeds.
- Files quarterly updates and the final declaration: end to end, not just records.
- Handles multiple sources: separates each trade and property cleanly.
- Fits your day-to-day: mobile app, receipt capture, and a workflow you’ll actually use.
- Support and cost: a price and level of help that suits you.
Where to check compatibility
HMRC publishes and updates the official list of MTD-compatible software on GOV.UK. Because the list changes as products are approved, it’s the source of truth. Always confirm a product is listed for Income Tax (not just VAT) before you sign up.
The shortcut most of our clients take
Rather than research and set up software themselves, most of our clients let us do it. We recommend an MTD-compatible package that suits your business, set it up, connect your bank, keep the records tidy, and file everything for you, on a fixed monthly fee. So the “which software?” question stops being your problem. Take our 2-minute quiz or see how our bookkeeping works.
Frequently asked questions
Common questions about MTD software.
What is MTD-compatible software?+
Software that HMRC recognises for Making Tax Digital: it keeps your records digitally and files your quarterly updates and final declaration directly with HMRC. HMRC publishes a list of compatible products on GOV.UK.
Do I need a full accounting package, or is a spreadsheet enough?+
You can keep records in a spreadsheet, but it must connect to HMRC through “bridging software”. Many people find a full package simpler, because record-keeping and filing live in one place. The right answer depends on how you work.
Which software is best for landlords?+
Landlords often prefer software with strong property features: separating properties, tracking rents and typical costs. The “best” one is whichever matches your setup; we’ll recommend and set up the right fit rather than push a single brand.
Do you choose and set up the software for me?+
Yes. We recommend MTD-compatible software that suits your business, set it up, connect your bank, and handle the filing, so “compatible software” is one less thing to think about.
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