The Best MTD for Self-Assessment Software: What You Need to Know

Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) is coming – and if you’re a sole trader, landlord, or small business owner, you’ll need to start keeping digital records and submitting quarterly updates to HMRC using approved software. At Blue Rocket Accounting, we know the right software can make all the difference. That’s why we’ve put together this guide to help you understand which programs are MTD-compatible, and how to choose the best one for your needs.

Who needs MTD for Self-Assessment software?

MTD for Self-Assessment will apply from:

• April 2026 – self-employed individuals and landlords with income over £50,000.
• April 2027 – those earning more than £30,000.

If you fall into these categories, you’ll need to use MTD-compatible software to keep records and file updates.

Which software is MTD-compatible?

HMRC has approved a number of providers, with more being added as the rollout continues. Popular options include:

• Sage Accounting – full record-keeping and submission.
• Xero – cloud-based, ideal for sole traders.
• FreeAgent – user-friendly, supports digital record-keeping.
• Clear Books – cost-effective, with a free version.
• IRIS – a suite of professional tools, great for growing businesses.
• Untied – mobile-friendly and budget-conscious.
• APARI – supports both record-keeping and submissions.
• Digita Personal Tax (Thomson Reuters) – bridging and compliance.
• Hammock – designed specifically for landlords.
• Self Assessment Direct and SE_reports – bridging tools for those using spreadsheets.

What to look for in MTD software

When choosing software, make sure it:

• Is HMRC-recognised for MTD Self-Assessment (not just VAT).
• Handles quarterly submissions and year-end declarations.
• Supports digital record-keeping of income and expenses.
• Integrates with your business tools or spreadsheets.

How Blue Rocket Accounting can help

The right software will save you time, reduce errors, and give you real-time insight into your tax position. But with so many options available, choosing can be overwhelming.

As a Blue Rocket Accounting Bookkeeping customer we can setup, manage and bill you for the appropriate MTD for Self-Assessment software as part of our service. Taking the stress out of compliancy on top of your other business commitments.

Find out more about our Bookkeeping services and let us guide you smoothly into the digital future of tax.

‍

‍