Making Tax Digital – which software to use

by Aitch, posted in Income Tax

Making Tax Digital (MTD) for Income Tax is now in force for many self-employed individuals and landlords. Since 6 April 2026, taxpayers with qualifying business or property income exceeding £50,000 are required to maintain digital records and submit quarterly updates to HMRC using compatible software.

The threshold is scheduled to reduce to £30,000 from April 2027 and to £20,000 from April 2028, bringing many more taxpayers within the scope of the rules. Although quarterly submissions are now required, taxpayers must still complete a final year-end declaration by the following 31 January.

Choosing which software to use for MTF is therefore an important decision. The software should be able to keep digital records, submit quarterly updates, support the final declaration process and link directly with HMRC systems. Some products are designed for more simple requirements, while others offer more advanced features such as invoicing, bank feeds, receipt capture and integration with existing accounting systems.

HMRC also recognises that some taxpayers may wish to continue using spreadsheets. This remains a possibility provided these are linked to HMRC through compatible ‘bridging’ software.

We would be happy to help recommend suitable software solutions that manage the MTD for Income Tax most appropriately for your circumstances.
 

Source:HM Revenue & Customs | 18-05-2026
author avatar
Aitch
I'm Aitch, the Founder and CEO of CIGMA Accounting Ltd. As a Chartered Management Accountant and as a CIMA member, I've spent more than 16 years helping businesses, entrepreneurs, landlords, and individuals with tax planning, accounting, and HMRC compliance. As a chartered accountant in London, I'm passionate about making complex tax matters easier to understand and helping clients make confident financial decisions. Over the years, I've advised start-ups, SMEs, established companies, and high-net-worth individuals across a wide range of tax and accounting matters. My expertise includes Corporation Tax, Self-Assessment, Capital Gains Tax, Inheritance Tax planning, R&D tax relief, capital allowances, international tax, and resolving complex HMRC compliance issues. Whether clients need a business accountant, tax accountant, or strategic tax advisor, my focus is always on delivering practical advice that creates long-term value. One of my specialist areas is Making Tax Digital (MTD). I've worked extensively with businesses preparing HMRC's digital reporting requirements, helping them move to cloud accounting, improve financial processes, and adopt technology that makes compliance more efficient. I regularly speak at Making Tax Digital roadshows, industry events, and educational sessions in collaboration with Zoho Books, sharing practical insights into digital accounting, tax legislation, and the future of the profession. Many business owners looking for the best accounting firm in London are not simply searching for an accountant they're looking for trusted advice, responsive support, and long-term value. That's the approach I've taken in building CIGMA Accounting. My team and I work closely with businesses across London and the UK, providing accounting services, tax advisory, bookkeeping, payroll, VAT, company accounts, and strategic tax planning tailored to each client's goals. Through this website, I share practical guidance on UK taxation, Making Tax Digital, HMRC updates, Corporation Tax, Self-Assessment, and business finance. My aim is to provide reliable, straightforward information that helps business owners understand changing regulations, reduce compliance risks, and make informed financial decisions with confidence.
See Full Bio