Making Tax Digital (MTD) for Income Tax will begin to become mandatory for certain taxpayers from 6 April 2026.
The MTD for Income Tax requirements will apply to:
- Self-employed individuals and landlords with annual combined business or property income or more than £50,000 from 6 April 2026.
- Those with annual combined business or property income of more than £30,000 from 6 April 2027
- Those with annual combined business or property income of more than £20,000 from 6 April 2028
Software will play a crucial role in the transition to MTD as the system mandates the digital recording of income and expenses, along with quarterly submissions to HMRC using compatible software. The functionality of approved MTD for Income Tax software varies, some enable digital records of income and expenses to be creates, whilst others act as bridging software.
If you have never used accounting software to manage your taxes, it can be a daunting prospect knowing which software to select.
Software now available
| Name of Software | Software for |
|---|---|
| 123 Sheets Ltd | Bridging, record keeping, quarterly updates |
| Absolute Excel Income Tax Filer | Bridging, quarterly updates, Self Assessment tax return |
| APARI | Record keeping, quarterly updates, Self Assessment tax return |
| Capium Limited — MTD for IT | Bridging, record keeping, quarterly updates, Self Assessment tax return |
| Clear Books | Record keeping, quarterly updates, Self Assessment tax return |
| Dext | Record keeping, quarterly updates, Self Assessment tax return |
| Digita Personal Tax — Thomson Reuters | Bridging, quarterly updates, Self Assessment tax return |
| Forbes MTD | Bridging, quarterly updates, Self Assessment tax return |
| FreeAgent | Record keeping, quarterly updates, Self Assessment tax return |
| Hammock for landlords | Record keeping, quarterly updates, Self Assessment tax return |
| Intuit QuickBooks Online | Record keeping, quarterly updates, Self Assessment tax return |
| IRIS Accountancy Suite | Bridging, quarterly updates, Self Assessment tax return |
| IRIS Elements Cashbook | Record keeping, quarterly updates, Self Assessment tax return |
| IRIS Kashflow | Record keeping, quarterly updates, Self Assessment tax return |
| Sage Accounting | Record keeping, quarterly updates, Self Assessment tax return |
| SE_reports | Bridging, quarterly updates, Self Assessment tax return |
| Self assessment direct | Bridging, record keeping, quarterly updates, Self Assessment tax return |
| TaxNav | Bridging, record keeping, quarterly updates, Self Assessment tax return |
| Untied | Record keeping, quarterly updates, Self Assessment tax return |
| Xero MTD for IT | Record keeping, quarterly updates, Self Assessment tax return |