Why HMRC Requires MTD Software
HMRC’s aim is to remove manual entry between business records and the tax authority. Compatible software enforces digital record-keeping and direct digital submission.
What MTD Software Must Do
Software must store digital records of income and expenses, maintain digital links through to the figures submitted, and connect to HMRC’s MTD APIs for submissions.
Types of MTD Software Available
Options range from full cloud bookkeeping platforms with bank feeds and invoicing, to simpler tools focused purely on the MTD submission requirement.
Bridging Software Option
If you keep records in spreadsheets, bridging software can connect those spreadsheets to HMRC and meet the digital link requirement.
Free vs Paid MTD Software
A small number of free options exist, typically with limited features. Most businesses find paid software offers significantly better functionality for the cost.
How to Choose the Right Software for Your Situation
Choice depends on your income types, business complexity, existing systems and budget. Our software setup service helps you choose and configure the right tool.