5 min read · Updated 2026-06-17
Once you're mandated into Making Tax Digital for Income Tax, you can't report through the old HMRC online form any more — quarterly updates and your Final Declaration have to go through MTD-compatible software that connects to HMRC directly. The good news: that doesn't mean buying an expensive accounting package.
Compatible software has to do three things: keep your income and expense records digitally, send your quarterly updates to HMRC through their official connection, and submit the year-end Final Declaration. HMRC keeps a published list of software it recognises for this.
A lot of MTD marketing is aimed at growing businesses with payroll, invoicing and stock. A typical sole trader or landlord needs far less than that: a clean record of money in and money out, categorised correctly, and a reliable way to submit it. Paying for features you'll never open is the most common MTD mistake.
If you love your spreadsheet, 'bridging software' can pass figures from it to HMRC in the MTD format. It works, but it adds a moving part and still needs your spreadsheet to be kept properly. For most people, software that keeps the records and submits them in one place is simpler.
Plot is built for Making Tax Digital and priced for individuals, not firms. The tax calculators and reliefs finders are free; affordable digital record-keeping keeps your self-employment and property figures current and your tax live all year, so each quarterly deadline is a non-event.
No. A sole trader or landlord needs software that keeps digital records, submits quarterly updates and files the Final Declaration. Full accounting suites add invoicing, payroll and stock features most individuals never use.
No — once mandated, the old online Self Assessment form is closed to you. Quarterly updates and the Final Declaration must go through MTD-compatible software connected to HMRC.
Yes. Property income is squarely within MTD for Income Tax, so compatible software should handle rental income and expenses, including the Section 24 finance-cost treatment.
It's a tool that takes figures from a spreadsheet and submits them to HMRC in the MTD format, so you can keep using a spreadsheet for records. It works but adds an extra step compared with all-in-one software.