Choosing MTD Software

What the Software Must Do

MTD-compatible software must be able to:^[1]

Keep digital records of income and expenses
Send quarterly updates to HMRC via their API
Submit your end of period statement
Submit your final declaration
Receive information back from HMRC (calculations, messages)

Finding Compatible Software

HMRC publishes a list of recognised MTD-compatible software on GOV.UK. Check this list to ensure your chosen software is approved.^[1]

What to Consider

When choosing MTD software, think about:

Your income sources — does it handle self-employment, property income, or both?
Ease of use — is the interface intuitive for your level of experience?
Bank feeds — can it connect to your bank for automatic transaction import?
Mobile access — can you log expenses on the go?
Agent access — can your accountant access it if you use one?
Price — monthly subscription, annual fee, or free?
Support — what help is available if you get stuck?

Free and Low-Cost Options

HMRC does not provide free MTD software for Income Tax. However, some commercial providers offer free tiers for certain income types. For example, GoFile includes free filing for dividends, interest, pensions, and capital gains, with self-employment and property income from just £4.99 +VAT per month.

GoFile is MTD-compatible. GoFile is HMRC-recognised software for Making Tax Digital for Income Tax. It handles digital record-keeping, quarterly updates, and final declarations — see GoFile’s MTD Income Tax software for details.

Can I Use Spreadsheets?

You can use spreadsheets for record-keeping, but you’ll need bridging software to submit your data to HMRC. The spreadsheet and bridging software must maintain a digital link (no manual retyping).^[3]

Switching Software

If you change software mid-year, the new software needs access to your year-to-date data. Most providers offer import tools, but check compatibility before switching.

Frequently Asked Questions

What must MTD-compatible software do?

It must keep digital records of income and expenses, send quarterly updates to HMRC via their API, submit your end of period statement and final declaration, and receive information back from HMRC.

Can I use a spreadsheet for Making Tax Digital?

You can use spreadsheets for record-keeping, but you’ll need bridging software to submit data to HMRC, and there must be a digital link between the spreadsheet and the bridging software.

Is there free MTD software available?

HMRC does not provide free MTD software for Income Tax. Some commercial providers offer free tiers for certain income types — for example, GoFile includes free filing for dividends, interest, pensions, and capital gains.

How do I find HMRC-recognised MTD software?

HMRC publishes a list of recognised MTD-compatible software on GOV.UK. Check this list to ensure your chosen software is approved before signing up.

Sources

Software for Making Tax Digital for Income Tax — GOV.UK
Making Tax Digital for Income Tax — GOV.UK
Keeping digital records for MTD — GOV.UK