Compliant Software for Making Tax Digital

Having examined how Making Tax Digital affects different groups in Specific Audiences for MTD, the next logical step is selecting the right tools. As a business owner or landlord, choosing MTD-compliant software can seem daunting, but it's essential for seamless digital reporting.

HMRC Approved Software

HMRC approved software must connect via API for digital records and submissions, passing recognition processes for accuracy. Lists for VAT and ITSA are available; check gov.uk (compatible software) for ITSA and gov.uk (find compatible software) for VAT. As of 2025, options include full suites and bridging tools.

STAT: Over 100 software products are HMRC-recognised for MTD compliance.

Xero for MTD

Xero for MTD offers cloud-based accounting with bank feeds, invoicing, and direct HMRC submissions for VAT and ITSA. Ideal for real-time tracking, it's user-friendly for small businesses. Fully approved, it supports quarterly updates effortlessly.

QuickBooks for MTD

QuickBooks and MTD provides intuitive tools for expense tracking, invoicing, and API-linked filings. Approved for VAT and ITSA, it includes tax estimates and mobile apps, suiting dynamic users.

Sage for MTD

Sage for MTD delivers robust features like payroll integration and secure cloud storage. HMRC-recognised for VAT/ITSA, it's scalable for growing entities, with easy quarterly reporting.

Bridging Software

Bridging software links spreadsheets to HMRC APIs, allowing continued use of Excel while complying. Options like MyTaxDigital or Forbes MTD are cost-effective for simple needs. Useful if full software feels overwhelming; details on setup in Registration and Setup for MTD.

Software for Landlords

Software for landlords such as Landlord Vision or Landlord Studio focuses on rental tracking, expense deductions, and ITSA submissions. These handle joint properties – see Specific Scenarios in MTD – and digitise records efficiently.

Software for Self Employed

Software for self-employed like FreeAgent or Coconut simplifies income/expense logging and quarterly updates. Tailored for sole traders, they offer receipt scanning and tax forecasts, aligning with Making Tax Digital for Income Tax (ITSA).

Making Tax Do-able with PJL Accounts

PJL Accounts helps clients pick and integrate MTD-compliant software, drawing on experience with Xero, QuickBooks, and more. Feedback includes: "PJL's recommendation saved us hours." We're here to match tools to your needs.

Guided Preparation Steps

✅ Step 1: Check if You’re Registered

  • New VAT registrations are auto-enrolled into MTD.

  • If you registered before April 2022 and haven’t switched, you need to act now.

✅ Step 2: Register for MTD for VAT (if needed)

  • Use your Government Gateway login

  • Sign up here: Sign Up with HMRC

  • Register at least 7 days before your next VAT Return is due

  • Wait for HMRC confirmation (usually within 72 hours)

✅ Step 3: Using an Agent?

  • We can register and manage MTD for you

  • You stay hands-off—we do the admin and handle compliance

If challenges arise, reach out to us for tailored assistance.

Remember we are here to enhance your work life balance. We have three ways to get you ready for ‘Making Tax Digital’.

Frequently Asked

  • Yes, fully recognised; confirm via HMRC tool.

  • Tools like MyTaxDigital; ideal for spreadsheets.

  • Landlord Vision for property focus; explore Specific Audiences for MTD.

  • From free bridging to £X/month; weigh against penalties in Challenges and Considerations in MTD.

  • Yes, like Coconut; check compatibility.

Choosing Your MTD-Compliant Software

Selecting MTD-compliant software streamlines compliance and boosts efficiency. Delaying risks fines and chaos. Contact PJL Accounts today for expert software guidance.