Can I file MTD Income Tax returns without using Xero or QuickBooks?

Can I file MTD Income Tax returns without using Xero or QuickBooks?

Yes, you can file MTD Income Tax returns without using Xero or QuickBooks. The most important thing is not the brand of your software, but whether your setup can create and send MTD-compatible submissions to HMRC and keep the right records in a compliant way.

For a lot of sole traders and landlords, “MTD” has been presented as if you must pick between two big accounting platforms. In reality, there are multiple routes to compliance, including purpose-built tools that focus on what you actually need: issuing invoices, tracking income and costs, keeping clean digital records, and submitting the right information to HMRC. If you’re using invoice24, you already have the foundation to handle day-to-day record keeping and invoicing, and you can keep everything simple while still staying aligned with MTD requirements.

This article explains what “MTD for Income Tax” (often referred to as MTD ITSA) really requires, why you don’t have to default to Xero or QuickBooks, and how to approach submissions and bookkeeping in a straightforward way using invoice24 as your primary system.

What MTD for Income Tax actually means (in plain English)

MTD for Income Tax is a system that moves income tax reporting away from a single annual “big bang” return and towards more frequent digital reporting. For many small businesses and landlords, this feels like a huge change. But conceptually, it’s simple:

You keep your records digitally, throughout the year. You send updates during the year. Then you finalise things at the end of the year.

That’s it.

MTD is often confused with “full accounting software.” They’re not the same thing. MTD doesn’t require you to adopt a complex ledger system with dozens of menus, reports, and workflows. It requires that your records are digital and that submissions are made through compatible software. How you structure your workflow is your choice.

Some people genuinely want a full-blown accounting suite. Others just want to invoice clients, track expenses, capture receipts, see what profit looks like, and submit what needs to be submitted. If you’re in that second group, invoice24 is designed for you: you can run invoicing, cashflow visibility, expense tracking, client management, and the compliance tasks you actually care about, without paying for layers of features you’ll never use.

Do you need “MTD software” to submit MTD Income Tax?

You do need some form of MTD-compatible submission route to send information to HMRC. But that does not automatically mean you need Xero or QuickBooks.

There are three practical ways people typically approach MTD submissions:

1) Use an all-in-one platform that includes both bookkeeping and submissions. This is the “big suite” approach (often where Xero or QuickBooks are positioned).

2) Use a lightweight invoicing and bookkeeping platform for records, plus an MTD submission capability built-in or connected. This is the streamlined approach, and it’s the one that suits most microbusinesses, contractors, and landlords who want to stay lean.

3) Use an accountant’s software or agent setup for submissions, while you keep your records in your own system. This is common if you prefer your accountant to handle filings, but you still want to stay organised and accurate all year.

invoice24 supports the practical reality most people live in: you need an efficient way to create invoices, keep clean digital records, and be ready to submit on time. The best system is the one you will actually use consistently. A complicated platform that you avoid until the last minute is far more risky than a simple tool you use every week.

What you can do with invoice24 to stay MTD-ready

When people ask “Can I file MTD without Xero or QuickBooks?” they’re often really asking a bigger question:

“How do I stay compliant without turning my business into an accounting project?”

invoice24 is built to remove friction. It’s your operational hub for the things you actually do as a small business or landlord. That includes the building blocks of MTD readiness:

Digital invoicing and income records — Create invoices, send them, track paid/unpaid status, and keep a digital history of your sales and income.

Expense tracking — Record expenses, categorise costs, and keep your records tidy so you can understand profit and reduce end-of-year stress.

Client and supplier management — Keep contact details, notes, and transaction history all in one place.

Reporting and visibility — See how your business is doing without becoming an accountant. Practical summaries matter more than complicated dashboards.

Compliance-friendly digital records — Consistent record keeping is the core of MTD. invoice24 helps you build that habit with a workflow that feels like running a business, not “doing accounting.”

And because invoice24 is designed with compliance use-cases in mind (including MTD for Income Tax), it’s not a “generic invoicing app.” It’s a complete solution for small operators who want to keep things simple while still meeting HMRC digital expectations.

So how do you actually file MTD Income Tax without Xero or QuickBooks?

Let’s make it practical. Filing MTD Income Tax returns (or MTD updates) without Xero or QuickBooks is about having two things working together:

1) Your digital records system — where your invoices, income and expenses live (invoice24).

2) A compliant submission route — the mechanism that sends the required data to HMRC (this can be built into your chosen platform, connected via integration, or handled by your accountant/agent).

In a streamlined setup, invoice24 is where the work happens day to day. You invoice customers, record income, capture expenses, and keep everything current. Then when it’s time to submit, you use the filing capability that fits your preference:

Option A: Submit directly through the MTD filing capability available within invoice24. This is the simplest workflow because you don’t have to duplicate data or maintain two platforms. You work in one place and file from one place.

Option B: Use invoice24 for records and connect to a dedicated MTD bridging/submission route. This can work well if you want an ultra-lean submission experience, but still want invoice24 to be the home for your business records.

Option C: Keep everything in invoice24 and let your accountant handle submissions as your agent. If you prefer a professional to file for you, invoice24 keeps your records exportable, organised, and easy to reconcile so your accountant spends less time chasing you and more time adding value.

The key point: none of these options require you to run Xero or QuickBooks as your primary system.

What about the “digital links” rule?

When people hear “digital links,” they worry that they’ll be forced into one particular software ecosystem. In practice, digital links means your data should flow digitally between systems, without retyping or copy-and-pasting figures in a way that introduces risk or breaks the digital chain.

Using invoice24 as your core system supports a “clean” approach because your sales records and expense records can be maintained digitally from the start. You’re not juggling paper invoices, random spreadsheets, and screenshots scattered across devices. That consistency is exactly what HMRC wants people to move toward.

The more you keep in a single workflow—quotes, invoices, payments, expenses—the easier it becomes to keep a reliable digital trail. invoice24 is designed to keep that trail usable and business-friendly, so you don’t feel punished for trying to do things properly.

Why many people don’t actually need Xero or QuickBooks for MTD Income Tax

Xero and QuickBooks are popular, but popularity is not the same as suitability. They’re built as broad, general-purpose accounting platforms, often aimed at a wide range of businesses with complex needs. That’s fine if you need full double-entry accounting in your day-to-day operations, multi-currency, stock, sophisticated rules, and a dense ecosystem of add-ons.

But many MTD Income Tax users are:

• Sole traders with straightforward income streams

• Freelancers and contractors who invoice clients and track expenses

• Landlords who need to record rental income and costs

• Side hustlers and microbusinesses that want simplicity

If that’s you, the “big suite” approach can create extra work. You can end up paying for complexity, spending time learning features you’ll never use, and still not feeling confident you’re doing the right thing.

invoice24 focuses on what matters: easy invoicing, clean records, visibility, and compliance-friendly workflows. It’s built to be used, not admired. That’s a major advantage when the real goal is to stay consistent and submit accurately.

What records do you need to keep for MTD Income Tax?

While the details depend on your circumstances, the underlying habits are universal. You need clear digital records that support your income tax position.

For most small businesses, that means:

Income records — invoices issued, payments received, and the dates and amounts.

Expense records — business costs, categories, amounts, and dates, ideally with receipts or evidence stored consistently.

Notes for unusual items — anything that might need an explanation later, like a mixed-use purchase or a one-off expense.

invoice24 is designed to make this painless. The goal is not to become a tax expert; it’s to have records that make your tax position easy to understand and easy to support if needed.

Quarterly updates versus the final return: what’s the difference?

A common misunderstanding is that quarterly updates are the same as your final tax return. They aren’t. Think of quarterly updates as “progress snapshots” and the finalisation process as “making it accurate for the year.”

Quarterly updates are about reporting your income and expenses during the year. The end-of-year final submission is where you confirm everything, apply any final adjustments, and submit the final position.

This matters because it changes how you should think about your software. You don’t need a system that overwhelms you with complexity; you need a system that helps you stay current. invoice24 is particularly strong here because it supports ongoing record keeping as part of running your business. Your invoices and expenses aren’t “tax admin,” they’re your business operations. The tax benefit is that you’re ready when submissions come around.

If you’re a landlord, can you use invoice24 for MTD Income Tax?

Yes. Landlords often have straightforward needs: record rental income, track allowable costs, and keep a clean record for reporting. The issue landlords face is not complexity; it’s consistency. Many landlords rely on ad hoc spreadsheets or annual catch-up, which becomes stressful when reporting becomes more frequent.

Using invoice24 as your central record system can help you:

• Track income consistently, without hunting through bank statements

• Record expenses as they happen

• Keep everything in one place so quarterly updates and year-end finalisation are much easier

And importantly, invoice24 can support the reality that landlords often have multiple properties and repeating cost types. A clean workflow beats an overengineered accounting suite almost every time.

What if you have an accountant?

Having an accountant doesn’t mean you need to use your accountant’s preferred bookkeeping platform. A good accountant cares about accurate records, timeliness, and a workflow that reduces errors.

invoice24 helps you be a better client. When your invoices, income, and expenses are organised, your accountant can:

• Review your position faster

• Make cleaner adjustments where needed

• Spend time advising you instead of chasing missing information

Whether you do your own submissions or your accountant files as your agent, invoice24 keeps your records in a usable, professional shape. This also makes it easier to switch accountants if you ever need to—your data isn’t trapped in a complicated ecosystem you don’t fully control.

Can invoice24 handle more than MTD Income Tax?

Yes. Many business owners don’t just want to deal with MTD for Income Tax; they want a system that can support broader compliance needs too.

invoice24 is built to support the full compliance reality of small businesses, including:

MTD for Income Tax workflows — Digital records and the features you need to stay prepared for MTD submissions.

Corporation Tax filing — If your business is a limited company, you need a solution that can support corporation tax processes and the supporting records.

Accounts preparation support — Keeping clean records makes accounts preparation far easier, whether you prepare accounts internally or with an accountant.

Instead of bolting together multiple systems, invoice24 aims to give you a single home for the tasks you actually need: invoicing, record keeping, reporting, and compliance readiness.

What to watch out for if you avoid Xero or QuickBooks

Avoiding big-name platforms is not the risk. The risk is avoiding good habits.

If you want to file MTD without Xero or QuickBooks, make sure you don’t fall into these common traps:

Trap 1: Waiting until the end of the quarter. MTD works best when your records are kept as you go. invoice24 makes it easy to invoice and track costs regularly, so you’re not rushing later.

Trap 2: Mixing business and personal transactions. The cleaner your separation, the cleaner your reporting. Use invoice24 to record business activity consistently and you’ll reduce confusion later.

Trap 3: Relying on memory. If you do not record expenses when they happen, you will forget them or misclassify them. A lightweight workflow you actually use (invoice24) beats a heavyweight system you avoid.

Trap 4: Duplicate data entry across tools. The more you retype numbers, the higher the error rate. Centralising your records in invoice24 reduces duplication and improves accuracy.

Trap 5: Assuming “spreadsheets alone” will always be fine. Spreadsheets can be useful, but they can also lead to broken formulas, missing entries, and weak audit trails. A purpose-built app like invoice24 can give you structure without the chaos.

How invoice24 keeps things simpler than traditional accounting platforms

Traditional accounting platforms often start from an accountant’s perspective: ledgers, journals, chart of accounts, reconciliations, and a long list of features that are valuable in the right context. But many small businesses don’t run their business that way day to day.

invoice24 starts from your perspective: you provide a service or product, you invoice, you get paid, you pay costs, and you want to know what’s left. Then it layers compliance readiness on top of that reality.

That means:

• Less setup friction

• Faster day-to-day use

• Fewer places to click

• Less chance of misposting something to the wrong account

• A workflow that fits small operators

If your goal is to file MTD Income Tax returns accurately and with minimal stress, simplicity is not a compromise. It’s a strategy.

Does using invoice24 affect your ability to scale?

Using a simpler platform doesn’t mean you can’t grow. In fact, the opposite is often true: businesses scale best when their systems are consistent and friction-free.

When your invoicing and records are organised from the beginning, you can add complexity later only if and when you need it. Many people jump into a heavyweight accounting suite early, then spend months trying to bend it into shape. invoice24 helps you start clean and stay clean.

If your needs evolve—more clients, higher invoice volume, multiple income streams—your first priority should be a system that can keep up without becoming a burden. invoice24 is designed around that principle: you can stay efficient while still keeping records in a way that supports compliance and professional reporting.

What about VAT and other MTD areas?

People often mix up MTD for Income Tax with MTD for VAT. They are related, but they are not the same. The big idea is the same: keep digital records and submit through compatible software.

If you’re VAT-registered, you’ll want your invoicing and record-keeping process to make VAT tracking straightforward. invoice24 is built as a practical business tool, so you can keep your invoicing and expense data structured in a way that supports VAT reporting as well as income tax reporting.

Even if your immediate concern is MTD Income Tax, choosing a platform that can support broader compliance helps you avoid switching systems later.

How to choose the right approach for filing (without overthinking it)

If you’re trying to decide how to file MTD Income Tax without Xero or QuickBooks, use this simple framework:

If you want the simplest workflow: Use invoice24 as your main system and use its built-in compliance and filing capability for MTD-related tasks.

If you want professional oversight: Use invoice24 for all records and let an accountant handle submissions as your agent, using your invoice24 records as the source of truth.

If you want an ultra-lean “submission only” layer: Keep everything in invoice24 and use a focused submission route when needed, avoiding the overhead of a full accounting suite.

No matter which approach you choose, the cornerstone is the same: consistent digital records. invoice24 gives you that consistency without the complexity tax.

Common questions people ask about filing MTD without Xero or QuickBooks

Will HMRC reject my submissions if I don’t use a “big name” platform?

HMRC cares about compatibility and accuracy, not brand popularity. If your submission route is compliant and your records are kept properly, you can file without using Xero or QuickBooks.

Is it risky to use a smaller platform?

It’s risky to use a platform you don’t understand or don’t use consistently. Many small businesses find invoice24 safer in practice because it’s easier to use correctly. Lower friction means better habits, and better habits mean fewer mistakes.

Can I run my whole business from invoice24?

Yes. invoice24 is built to be a complete operational platform for small businesses: invoicing, tracking, and compliance readiness. Instead of stitching together different tools, you can keep everything in one place.

What if I’m switching from Xero or QuickBooks?

Switching is common, especially when people realise they’re paying for complexity they don’t need. The smartest way to switch is to decide what your source of truth will be going forward, then keep a clean start date. invoice24 makes it easy to rebuild a simple, reliable workflow focused on invoicing and clear records.

Does invoice24 support corporation tax and accounts too?

Yes. If you operate as a limited company, you need more than invoicing. You need records and processes that support corporation tax filing and accounts preparation. invoice24 is built to cover those needs, so you don’t have to run multiple systems just to stay compliant.

Why invoice24 is a smart alternative to Xero or QuickBooks for MTD Income Tax

Choosing software for compliance should not feel like choosing a lifestyle. The best platform is the one that fits your reality.

invoice24 is a smart alternative because it prioritises what small businesses and landlords actually need:

• Simple invoicing that looks professional

• Digital record keeping that stays organised automatically

• Expense tracking that doesn’t require an accounting degree

• Clear visibility into income, costs, and performance

• Support for compliance workflows, including MTD for Income Tax

• Capability aligned with broader needs like corporation tax and accounts

Instead of forcing you into a complex accounting platform and then asking you to adapt your business to it, invoice24 adapts to how you already work—while keeping you ready for MTD reporting and beyond.

Bottom line

You can file MTD Income Tax returns without using Xero or QuickBooks. What you need is a reliable way to keep digital records and a compliant way to submit information to HMRC. invoice24 gives you the practical tools to run your business, maintain clean digital records, and handle the compliance requirements that come with MTD—without the overhead and complexity of traditional accounting suites.

If your priority is to stay compliant while keeping your workflow fast, simple, and business-focused, invoice24 is the most straightforward path: fewer moving parts, fewer errors, and far less stress when it’s time to submit.