There isn't one piece of MTD software that's right for everybody. The best option depends on how you currently keep your records, what you need the software to do, and how much help you want.
HMRC lists compatible products but does not recommend one particular provider. Use the official finder to compare products that work with Making Tax Digital for Income Tax.
Independent guide from MTD Together • Not HMRC • Always check GOV.UK for the definitive rules
In simple terms, you need a digital system capable of meeting the relevant Making Tax Digital for Income Tax requirements. That usually means:
The system must be able to store your business income and expenses digitally, or connect digital records from another source such as a spreadsheet, so they can be sent to HMRC in the right format.
It needs to send quarterly updates and the required end-of-year information to HMRC through the Making Tax Digital for Income Tax service.
HMRC allows compatible products to be used together where appropriate. For example, you might keep records in one place and use bridging software to submit them.
For the full technical picture, see HMRC's official Making Tax Digital for Income Tax guidance.
The easiest path into MTD usually depends on where you're starting from. Not sure of your start date? Check our Do I need Making Tax Digital? guide first.
You don't have to abandon Excel or Google Sheets. MTD-compatible 'bridging software' can take the figures from your spreadsheet and send them to HMRC in the required format. That's a popular middle ground if you're comfortable with your existing setup.
Start by checking whether your current provider supports Making Tax Digital for Income Tax. If it does, you may have little reason to switch purely because of MTD. Look for an MTD for Income Tax compatibility statement on their website or in HMRC's software finder.
You'll need to move your relevant records into an appropriate digital system. That could be record-keeping software, or a spreadsheet combined with bridging software. The key is that the information is digital and can be submitted to HMRC correctly.
This can be a good opportunity to choose a simple system that fits how you work. You don't need every feature under the sun — focus on what's easy to use, compatible, and priced sensibly for your circumstances.
Use this practical checklist to narrow down the options without getting lost in feature lists.
Some software may be free for particular users or circumstances, while other products charge a subscription or other fees. Pricing and availability can change, so the safest way to compare current options is HMRC's official software finder.
Be honest about what you need. A simple, low-cost product can be perfectly adequate if your records are straightforward. A more expensive accounting platform may make sense if you want broader bookkeeping features, but it's not a requirement for MTD.
Compare compatible products on GOV.UKWell-known accounting platforms can be a good fit for some sole traders and landlords, especially if you already use them for invoicing, expenses, or tax return preparation. However, MTD Together does not rank providers or claim that one is universally "best" — the right choice depends on your situation.
If you're already comfortable with a compatible product, you may have little reason to switch purely because of MTD. If you're choosing for the first time, focus on compatibility, ease of use, support, and price rather than brand name alone.
For the £30,000 threshold and what it means for sole traders, see our MTD for sole traders earning over £30,000 guide.
Yes — spreadsheets can potentially continue to form part of your MTD setup, as long as they're used with suitable compatible or bridging software that submits the required information to HMRC.
This is a common route for people who are happy with their spreadsheet but don't want to learn a full accounting package. The bridging software reads your figures and sends them in the format HMRC needs.
Read our dedicated guide, Can I Keep Using Excel With Making Tax Digital?, for a deeper look at how bridging software works and what to watch out for.
It's software that meets HMRC's requirements for Making Tax Digital for Income Tax. That means it can keep and/or connect your digital records and send the required quarterly updates and end-of-year information to HMRC. HMRC publishes a list of compatible products but does not recommend one over another.
HMRC does not provide its own MTD software. It publishes a software finder that lists compatible products, some of which may be free for certain users or circumstances. Availability and pricing change, so it's worth checking the official finder for current options.
Yes, potentially. A spreadsheet on its own can't send information to HMRC, but it can form part of an MTD setup when used with suitable bridging software. The bridging software links your spreadsheet to HMRC and submits the required figures digitally.
No. Well-known accounting platforms can be a good fit for some people, but they are not mandatory. The right choice depends on your records, your budget, and how much support you want. HMRC's software finder lists many alternatives.
If it supports Making Tax Digital for Income Tax, you can usually carry on using it. There's no requirement to switch provider just because MTD is being introduced. Check the provider's compatibility information or HMRC's software finder.
Costs vary. Some products are free for particular users; others charge monthly or annual subscriptions, sometimes with extra fees for support or additional features. Compare current prices through the provider's website or HMRC's software finder.
Yes, but plan the transition carefully. You'll want to make sure your records can be moved or accessed in the new system, and that any submissions already made are not duplicated. Most providers can export data, but check this before you commit.
Not necessarily. Landlords need software that can handle UK property income under MTD for Income Tax, but many products suitable for sole traders also support property income. If you have both self-employment and property income, choose a product that can handle both.
These answers are general guidance, not tax advice. For the definitive rules, always refer to the official Making Tax Digital for Income Tax guidance on GOV.UK.
This is exactly the type of practical decision MTD Together can help you work through. Book a free 15-minute readiness call, and if you'd like hands-on help, our £99 one-to-one Digital Setup Session gets your chosen software set up with you — and shows you how to use it confidently.
The £99 session is for setup and guidance; it does not include any software subscription costs.
Independent support service • Not HMRC • No obligation