Finding the right MTD software for you

As the first of the big Making Tax Digital for Income Tax (MTD for IT) thresholds approaches, more and more of those impacted are starting to get prepared.

It is imperative that any sole trader, landlord, and self-employed individual who earns over £50,000 a year is ready for MTD for IT by April 2026.

That threshold falls to £30,000 in April 2027 and to £20,000 in April 2028, so if you feel like you will be impacted over the next few years, now is the time to get your software sorted out.

Why does software matter for MTD?

Unlike the old system, where you could submit everything in one annual tax return, MTD for IT involves ongoing record-keeping and quarterly submissions.

MTD-compliant software is going to be the linchpin of staying compliant, as it will need to connect to HM Revenue and Customs’s (HMRC) systems to ensure that your filings can be completed on time.

While it is relatively straightforward to find an MTD-compliant software, the market is teeming with options, it can be much harder to find one that suits your needs.

What should I look for in MTD-compliant software?

The two core aspects that are going to be the deciding factors are cost and usability.

One would imagine that all of the MTD-compliant software is designed to be competitive in cost and be relatively accessible, but there will be distinct differences.

Each piece of software will be better for specific individuals and businesses, so figuring out what you need is going to be the first step.

Seeking professional support is a good idea, as we can ensure you understand what features are vital for you and which you can live without.

Fundamentally, you do not need to pay for high-end software packed with features you never touch.

Depending on the complexity of your operations, you should find software that is capable of keeping pace.

This is why we are such strong advocates for early MTD for IT preparation, as this gives the greatest advantage of all – time.

By preparing early, you can use as many free trials and demos as you like to really get a feel for what is on the market.

Find the software that does the things you need it to do and that you can imagine yourself using on a near-daily basis for the rest of your professional life.

Once MTD for IT is implemented, you will get the chance to experience the software in earnest and you will learn whether it is working for you.

The intention of MTD for IT is to streamline tax filings and make things simpler and more transparent.

The ultimate question that you must ask of any software provider is does this make tax simpler or just add more hassle?

Our expert team already have a lot of experience with this software and has been testing the MTD functionality of it, so they can help you to identify the right fit for you.

Whether you are a landlord looking to keep compliant or a sole trader with dreams of entrepreneurial success, we can support you in finding the MTD-compliant software of your dreams.

For expert support and guidance on everything related to MTD preparation, speak to our team today!

Katy Tovey