Guides

Making Tax Digital software: what it must do and how to choose

Checked against GOV.UK on 19 October 2026

General guidance taken from GOV.UK, not advice about your own tax affairs. HMRC's rules change, so the GOV.UK pages listed at the end are the final word.

If you have to use Making Tax Digital for Income Tax, you, or an agent for you, need commercial software that works with it. It must keep digital records of your self-employment and property income and expenses, send your quarterly updates to HMRC, and submit your tax return by 31 January. GOV.UK says to choose your software before you sign up. HMRC's software finder lists only software that has been through HMRC's recognition process, and HMRC does not recommend any product.

What the software must do

GOV.UK lists three jobs:

  • create, store and correct digital records of your self-employment and property income and expenses
  • send your quarterly updates to HMRC — summaries of that income and those expenses, not tax returns
  • add your other income and submit your tax return by 31 January after the tax year

You only need digital records for self-employment and property. Other income, such as pensions, a share of a partnership's profit, savings or dividends, needs no digital records, but you still report it on your tax return through your software.

Two kinds of software

Software that creates your digital records. You build your records in it, by:

  • linking it to your business bank account to import transactions automatically
  • scanning receipts and invoices
  • typing in your income and expenses yourself

GOV.UK says this kind usually meets all the requirements, including sending quarterly updates and submitting your tax return. Some can also connect to records you keep in other software.

Bridging software. It connects to records you already keep, in spreadsheets or another accounting tool. GOV.UK's example: if you record your income and expenses in spreadsheets, bridging software can connect to them and make your submissions to HMRC. GOV.UK says some bridging products let you both send quarterly updates and submit your tax return, so check what yours covers.

Using more than one product

You can, but only one product for each separate submission. A landlord, for example, can't use more than one product to send the quarterly updates of their property income or expenses. GOV.UK's examples of using more than one:

  • a different product for each income source: a builder who is also a landlord
  • a different product for each task: one for records and quarterly updates, another for the tax return

If you use more than one, make sure they work together to cover everything.

What to check before you choose

The software you choose must:

  • support all your income sources under Making Tax Digital: self-employment, UK property, foreign property
  • let you send quarterly updates and submit your tax return
  • let you report all your other income on your tax return
  • work with your accounting period: the standard tax year, calendar update periods, or neither

GOV.UK also suggests checking whether it:

  • allows more than one agent, if you have more than one
  • has HMRC Assist built in, which gives feedback and highlights errors on your tax return using your submissions and the data HMRC holds
  • has pricing that suits your budget. Free products are available for simple tax affairs, but they may be limited, for example to a number of transactions.

Also check:

  • If your income sources may change, for example a landlord thinking of starting a business, check the software will support the new one.
  • If you're VAT registered, you already use software for VAT. Check whether it also works with Making Tax Digital for Income Tax, or that the software you choose can meet your VAT needs.
  • If you have an accountant or bookkeeper acting as your agent, ask them about your choice, so they can support you.

Use HMRC's software finder

HMRC's finder asks a few questions and gives you a personalised list. You'll need to know:

  • your income sources covered by Making Tax Digital
  • any other income you need to report on your tax return
  • whether you want to create new digital records or connect to existing ones
  • your accounting period

You can also search for the software you already use, to check whether it works with Making Tax Digital for Income Tax. If it isn't listed, or an income source of yours isn't supported yet, GOV.UK suggests asking the provider about their plans; more software will become available over time.

After you choose

  1. Sign up for Making Tax Digital for Income Tax, if you haven't already.
  2. Authorise your software, so it's connected to HMRC: choose the option to connect with HMRC in the software, enter the user ID and password you used to sign up, pass the identity check if asked, and give permission. You repeat this every 18 months, without the identity check; your software should remind you.
  3. Check your accounting period in the software. It defaults to the tax year, 6 April to 5 April. If yours runs from 1 April to 31 March, select calendar periods before you send your first quarterly update.

Sources