Choosing Making Tax Digital Software

Introduction

If you're required to use Making Tax Digital for Income Tax from 6 April 2026, you'll need to choose compatible software before you sign up. The right software will help you keep digital records, send quarterly updates to HMRC, and submit your tax return—and there are options to suit different business needs and budgets, including free products and bridging software if you want to keep using spreadsheets.

When you need software

From 6 April 2026, some sole traders and landlords must use compatible software to report their income through Making Tax Digital for Income Tax. You should choose your software before you sign up for the service.

Before selecting software, check whether you need to use Making Tax Digital for Income Tax and when you need to start. Not everyone will be required to join from April 2026—the requirement depends on your income level.

What your software must do

You (or an agent working on your behalf) will need commercial software that can:

Create, store and correct digital records of your self-employment and property income and expenses
Send quarterly updates to HMRC—these are summaries of your income and expenses, not tax returns
Add any other income sources you have and submit your Self Assessment tax return by 31 January following the end of the tax year

Digital records requirements

You only need to create digital records for your self-employment and property income and expenses. Other income sources—such as pensions, a share of profit from a partnership as an individual partner, savings or dividends—don't require digital records, but you must still report them on your tax return using your software.

Types of software available

There are two main types of software you can use for Making Tax Digital for Income Tax.

Software that creates digital records

This type of software lets you create your self-employment and property digital records from scratch. You can do this by:

Linking to your business bank account to import transactions automatically
Scanning receipts and invoices
Manually entering your income and expenses

These software products usually meet all the Making Tax Digital requirements and allow you to send quarterly updates and submit your tax return. Some also offer the option to connect to existing records in other software.

Bridging software

Bridging software connects to existing records you keep in spreadsheets or other accounting tools. For example, if you already use spreadsheets to record your income and expenses, bridging software can connect to them and make your submissions to HMRC on your behalf.

Some bridging software products allow you to both send quarterly updates and submit your tax return.

Using multiple software products

You can use more than one software product if you prefer, but you can only use one product for each separate submission to HMRC. For example, if you're a landlord, you cannot use more than one software product to send quarterly updates of your property income or expenses.

You might choose to use multiple products if you:

Have more than one income source and want to use a separate product for each—for instance, if you're a builder and a landlord and want different products to meet the needs of each business
Want to use different products for different tasks—one for creating records and sending quarterly updates and another for submitting your tax return

If you use more than one product, make sure they can work together to meet all your Making Tax Digital requirements.

Features to look for

When choosing software, check that it has all the features you need. Your software must:

Support all your income sources for Making Tax Digital for Income Tax
Let you make submissions to HMRC—both quarterly updates and your tax return
Allow you to report all your other income sources to complete your tax return
Work with your accounting period (standard tax year, calendar update periods or neither)

Additional considerations

If your business is VAT registered, you're already using software for Making Tax Digital for VAT. Check whether your VAT software will also be compatible with Making Tax Digital for Income Tax, or confirm that your chosen software can meet your VAT needs.

You should also consider whether the software:

Allows multiple agents if you have more than one
Has HMRC Assist built in—this feature provides feedback and highlights errors in your tax return using information from your submissions and data HMRC holds
Offers pricing that suits your budget—free products are available for those with simple tax affairs, though there may be limits on how they can be used, such as a restricted number of transactions

If your circumstances might change

If you think your income sources will change—for example, if you're currently a landlord but thinking of starting a business—check whether your software will support additional income sources in the future.

Finding compatible software

HMRC provides a software finder tool to help you find compatible software that meets your needs or check if your existing software works with Making Tax Digital for Income Tax. You'll be asked a few questions to get a personalised list of software options.

To use the tool, you'll need to know:

Your qualifying income from self-employment and property—this is your turnover (total income before expenses) from the previous tax year
Any other income sources you need to report in your tax return
Whether you want to create new digital records or connect to existing ones
Your accounting period (standard tax year, calendar update periods or neither)

All software listed in the finder tool has been through HMRC's recognition process. HMRC does not recommend any specific product or software provider.

If you have an accountant or bookkeeper, speak to them about your choice of software to make sure they can support you.

Software in development

More software providers are building products that work with Making Tax Digital for Income Tax. If your current software isn't yet listed or doesn't support your income source, contact your preferred provider about their plans. Additional software options will become available over time.

Next steps

After you've chosen your software, you'll need to:

1. Sign up for Making Tax Digital for Income Tax (if you haven't already)

2. Connect your chosen software to HMRC to authorise it

Sources

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.