Making Tax Digital — Software
Which MTD software do you need?
You must use HMRC-recognised software to submit your quarterly updates. Here’s how to choose — including free options.
Why software matters
Under MTD, you cannot submit your quarterly updates manually through the HMRC website. Every submission must go through HMRC-recognised software that connects directly to HMRC’s systems via API. Choosing the right software is your single most important practical step.
Always verify your chosen software appears on HMRC’s official software list before purchasing.
Your three options
Cloud accounting software
All-in-one platforms that handle invoicing, expense tracking, bank feeds, quarterly updates and the Final Declaration. The simplest option for most people.
Examples:
Xero, QuickBooks, FreeAgent, Sage Accounting, FreshBooks
Bridging software
If you already keep records in Excel or Google Sheets and want to continue, bridging software sits between your spreadsheet and HMRC — extracting your quarterly totals and submitting them digitally. A valid route provided there is a proper digital link between the two systems.
Examples:
VitalTax, 123 Sheets, Forbes MTD, GoFile
Standalone MTD tools
Simpler, lower-cost tools designed specifically for MTD submissions without full accounting functionality. Good for landlords or sole traders with straightforward finances.
Examples:
GoSimpleTax, TaxNav, Hammock (landlord-specific)
Free options worth knowing about
FreeAgent — free for NatWest, RBS, Ulster Bank and Mettle customers
Requires at least one transaction per month through your business account. Paid plan available otherwise.
Sage — free tier for simple sole traders
Basic functionality for straightforward self-employment income.
RentalBux — free for landlords until March 2028
Landlord-specific tool, free during the MTD rollout period.
HMRC’s own free tool
Basic functionality for very simple cases only.
Before you buy
Always check your chosen software appears on HMRC’s official recognised software list. Submissions from unrecognised software may be rejected.
Check HMRC’s software list →