Making Tax Digital Software Options

MTD compatible software UK – what are your choices?

If you’re self-employed or a landlord, you’ll soon need to follow Making Tax Digital (MTD) rules — and that means using the right software. But don’t panic. Whether you’re tech-savvy or prefer spreadsheets, there’s an MTD solution to suit everyone. And at Yorkshire Accountancy, we can help you make the right call.

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What is Making Tax Digital software?

MTD software is designed to help you record your income and expenses digitally, submit quarterly updates to HMRC, and file an end-of-year final declaration. From 6 April 2026, most self-employed people and landlords with income over £50,000 will need to use it. The threshold drops to £30,000 in April 2027 — and may fall further in 2028.

To be compliant, the software you use must be HMRC-approved. But “software” doesn’t have to mean a big monthly subscription — there are options to suit every business size and budget.

What MTD compatible software is available in the UK?

Here’s a breakdown of the most common options we recommend, from fully-featured cloud systems to spreadsheet-based solutions.

QuickBooks Online

  • Great for: Small business owners who want everything in one place.
  • Features: Invoicing, bank feeds, VAT tracking, MTD compatibility, and custom reports.
  • Bonus: Clients of Yorkshire Accountancy can get a free 12-month QuickBooks licence — saving you £30+ per month.
  • Why we like it: Clean interface, good support, and powerful automation for everyday bookkeeping.

Xero

  • Great for: Growing businesses and landlords with multiple properties.
  • Features: Real-time dashboards, smart bank reconciliation, and seamless MTD VAT and ITSA compliance.
  • Why we like it: Highly scalable, integrates well with apps, and great for businesses with employees.

FreeAgent

  • Great for: Freelancers and contractors.
  • Features: Simple project tracking, invoice reminders, MTD-ready tax submissions.
  • Why we like it: Ideal for people who want a fuss-free system with great support.

Pandle

  • Great for: Start-ups and cost-conscious businesses.
  • Features: MTD support, receipt uploads, bank feeds, mobile app.
  • Bonus: Our clients get Pandle Pro completely free.
  • Why we like it: It’s easy to use, and ideal if you’re just getting started.

VT Cash Book

  • Great for: Businesses used to Excel-style input with a desktop feel.
  • Features: Free to use for bookkeeping. With bridging software, it can be used for MTD submissions.
  • Why we like it: Lightweight, fast, and no subscription fees.

Cash Book Pro

  • Great for: Those who want a simple bookkeeping spreadsheet-style tool.
  • Features: Easy input and clear reports. Works well when paired with bridging software.
  • Why we like it: Simplicity. And no unnecessary bells and whistles.

Can I still use spreadsheets under MTD?

Yes — and that’s where we come in.

MTD doesn’t ban spreadsheets. What it does require is that your figures are submitted digitally via HMRC-approved software. If you’re already using a spreadsheet to keep track of income and expenses, there are two great ways you can stay compliant:

  • Use our MTD-compliant spreadsheet template – Simple, structured, and formatted to meet MTD requirements.
  • Use your own spreadsheet and we’ll connect it to HMRC using our in-house bridging software.

Either way, you stay compliant — and there’s no need to switch to cloud software if you don’t want to.

Not sure what’s right for you?

Here’s how we can help:

  • We’ll assess your current system and recommend the best route to compliance.
  • We offer free QuickBooks licences and help you get set up.
  • We’ll train you if you want to do it yourself — or we can do it all for you.
  • We offer monthly and quarterly healthchecks to catch errors early.
  • We support spreadsheet users with MTD bridging and full guidance.

Whatever your comfort level with software, we’ll make MTD easy — and tailored to how you run your business.

Final thoughts: MTD doesn’t mean one-size-fits-all

The biggest mistake people make with MTD is assuming they must buy expensive software or totally change how they work. That’s not the case.

There’s a huge range of MTD-compatible software options in the UK, and at Yorkshire Accountancy we’re here to help you choose the one that fits.

Prefer to keep using spreadsheets? No problem.
Want everything automated? We’ve got that too.

Let’s get you MTD ready

Get in touch for a free chat about your setup — and let’s find the most stress-free way to stay compliant. Whether you want training, full support, or just someone to handle it all for you, we’ve got a solution that fits.

Email support@yorkshireaccountancy.co.uk
Call 01482 845750

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