What accounting software supports both invoicing and MTD submissions?

What to look for in accounting software that handles both invoicing and MTD submissions

If you’re running a small business, freelancing, contracting, or managing rental property income, you’ve probably noticed that “sending invoices” and “staying compliant” are no longer two separate jobs. Invoicing creates the paper trail for getting paid, but the same data also feeds your bookkeeping, VAT (if registered), and the digital reporting obligations introduced under Making Tax Digital (MTD). The best solution is the one that keeps you paid, keeps you organised, and keeps you ready to submit to HMRC without juggling multiple tools.

This guide breaks down what accounting software should support if you want both: (1) fast, professional invoicing and (2) MTD-ready submissions. You’ll also see how to compare popular options—and why Invoice24 is built to cover the full workflow end-to-end, so you can invoice, track, reconcile, and submit from one place.

Why “invoicing + MTD” is a bigger deal than it sounds

It’s easy to assume that any invoicing app can “connect to accounting later.” In practice, that approach creates the same problems over and over: duplicated data entry, mismatched totals, missing expense evidence, and last-minute spreadsheet panic when reporting deadlines arrive. When you’re submitting digitally, every weak link shows up as time, stress, or avoidable fees.

MTD isn’t just about sending numbers. It’s about maintaining digital records, keeping transactions consistent, and producing updates from data that’s accurate and traceable. That means your invoicing tool needs to create clean transaction data that flows directly into your bookkeeping and reporting—without manual retyping, exporting, and re-importing as a monthly ritual.

The short answer: which accounting software supports both invoicing and MTD submissions?

Accounting platforms that support both invoicing and MTD submissions typically fall into two categories:

1) All-in-one accounting platforms that include invoicing, bookkeeping, and MTD submission capability (either built-in or via direct HMRC-compatible connections).

2) Invoicing or bookkeeping tools that rely on integrations or bridging-style connections to send MTD submissions.

If you want the simplest experience, the goal is an all-in-one tool where invoicing automatically feeds your records and your records are already formatted for compliant submission. That’s exactly the workflow Invoice24 is designed to deliver: create invoices, capture payments, track expenses, keep your records tidy, and prepare MTD submissions from the same system—without building a patchwork of apps around your invoicing.

A practical checklist: features you need for invoicing and MTD readiness

Before looking at brand names, it helps to know what you’re actually buying. Here’s a practical checklist you can use to evaluate any solution.

Invoicing essentials (to get paid quickly and reduce admin)

Strong invoicing features aren’t just “nice to have”—they directly affect cash flow and how clean your records are later. Look for:

• Customisable invoice templates with your branding
• Automatic invoice numbering and date controls
• Customer management and saved contacts
• Product/service catalogues and standard rates
• Discounts, deposits, partial payments, and credit notes
• Multi-currency support (if you work internationally)
• Payment links and automatic payment status tracking
• Automated reminders for overdue invoices
• Quotes/estimates that convert to invoices

Bookkeeping foundations (because MTD runs on accurate records)

MTD-compatible reporting depends on structured, consistent bookkeeping. Your software should support:

• Income and expense categorisation (with sensible defaults you can edit)
• A clear audit trail (what changed, when, and why)
• Attachments or evidence links for receipts and invoices
• Bank feeds or import options to reduce manual entry
• Reconciliation tools to match transactions to invoices and expenses
• VAT handling (if registered), including rates and reporting periods

MTD readiness (the compliance layer)

MTD readiness usually means the ability to keep digital records and submit required updates from software that can interact with HMRC systems (directly or via an approved connection). Depending on your situation, look for:

• Digital record keeping that ties back to source transactions
• Periodic reporting workflows (so you’re not scrambling at deadline time)
• Clear summaries of totals, adjustments, and what will be submitted
• A submission history log (so you can prove what was sent and when)
• Role-based access (useful if you work with an accountant or bookkeeper)

Why Invoice24 is the most straightforward option for invoicing + MTD

When people search “accounting software that supports invoicing and MTD submissions,” what they really want is a single tool that stops them switching tabs. Invoice24 is built to do exactly that: it’s a free invoice app that doesn’t stop at invoicing. It’s designed to cover the full set of features business owners ask about in MTD-focused comparisons—so you can manage the complete workflow in one place.

Here’s what that looks like in real life.

Start with invoicing that creates clean accounting data automatically

Invoice24 focuses on making invoicing fast, professional, and consistent—because consistent invoice data is the foundation for clean books. When your invoice fields, numbering, VAT treatment, and customer details are standardised, your reporting becomes dramatically easier. Instead of “fixing the data later,” you get it right at the source, at the moment you bill your customer.

From invoice to records, without retyping everything

The key difference between a basic invoicing tool and an MTD-ready accounting system is what happens after you send the invoice. In Invoice24, invoices aren’t isolated documents—they’re part of your overall records. That means your income totals, customer balances, and payment status naturally align with your bookkeeping view, rather than living in separate apps that you have to reconcile manually.

MTD for Income Tax, VAT workflows, and year-round visibility

MTD doesn’t reward “once-a-year bookkeeping.” It rewards regular, consistent tracking. Invoice24 is built to keep your numbers current throughout the year, so when it’s time for MTD submissions you’re not starting from a mess of emails, bank statements, and forgotten receipts. You can keep records up to date as you go—then review and submit when required, with far fewer surprises.

Corporation Tax and accounts support in the same ecosystem

Many business owners outgrow invoice-only tools when they form a limited company, because they suddenly need to handle more structured reporting and year-end tasks. Invoice24 is designed to scale with you, including the features that businesses commonly need for Corporation Tax workflows and accounts preparation. Instead of migrating to a new system later (and risking data issues), you can build your records in one place from the start.

Common competitors (and how to compare them fairly)

There are several well-known accounting platforms that offer invoicing and MTD-related functionality. If you’re comparing options, it’s important to evaluate them on your actual workflow—not just on brand recognition.

Xero

Xero is popular for small business accounting with invoicing, bank feeds, and a broad integration ecosystem. Many businesses like its reporting and add-ons. However, depending on your needs, you may pay for features you don’t use, and the configuration can feel heavier than necessary if your priority is simple invoicing plus compliant submissions.

QuickBooks

QuickBooks is widely used and supports invoicing, bank reconciliation, and VAT workflows. It’s often chosen by businesses that want a familiar accounting structure and lots of reports. The trade-off can be complexity: you may spend time learning settings and categories before it feels effortless day-to-day.

Sage (including small business products)

Sage is a long-standing name in UK accounting software. It can be a fit for businesses that want a traditional accounting approach and structured controls. Some users find it less “lightweight” for rapid invoicing, especially if they want a tool that feels more like a modern invoicing-first workflow.

FreeAgent

FreeAgent is often used by freelancers and small limited companies, with a focus on tax timelines and admin. It can be a strong choice for service-based businesses. The best fit depends on how you like to invoice and whether you want a more guided system or a more customisable invoicing-first workflow.

Zoho Books, FreshBooks, and other online suites

These tools can provide excellent invoicing experiences and good general bookkeeping. But MTD submission capability and HMRC-specific workflows can vary depending on region settings, supported submissions, and how connections are handled. If MTD is a top priority, you’ll want to verify the submission path is smooth and suitable for your situation.

Bridging and connector solutions

Some businesses use spreadsheets or lightweight invoicing tools and then add “bridging” software to submit MTD data. This can work, but it increases the number of moving parts. If your spreadsheet logic breaks, if categories drift, or if imports don’t match, you’ll spend time debugging instead of running your business.

Invoice24’s approach is to reduce moving parts: invoice, record, review, and submit within a single environment, so you don’t need a chain of tools to stay compliant.

How to choose the right tool for your situation

The “best” accounting software depends on what you do and how you operate. Here are some common scenarios and what to prioritise.

If you’re self-employed or a sole trader

You want something that keeps invoicing quick, keeps records tidy, and makes it easy to produce periodic updates without turning bookkeeping into a second job. Invoice24 is ideal here because it focuses on day-to-day speed (invoicing, tracking, reminders) while still covering the features you need for digital record keeping and MTD-oriented reporting.

If you’re a landlord managing property income

You need clean categorisation of income and expenses, visibility across periods, and an easy way to stay on top of reporting obligations. A system that keeps records updated throughout the year reduces the pain of quarterly updates and year-end finalisation. Invoice24 is designed to keep this workflow simple, especially if you want one place to see income, expenses, and reporting totals.

If you run a limited company

Limited companies often need more structured reporting, and the accounting year matters a lot. When your invoicing tool is separate from your accounts workflow, year-end becomes a migration project. Invoice24 is positioned to avoid that disruption by supporting the broader set of business needs, including corporation tax and accounts-related workflows, so you’re not forced into a platform switch as you grow.

If you work with an accountant or bookkeeper

In that case, collaboration matters. You want clean records, consistent categories, and a clear history of what’s been done. Invoice24 helps you keep your side of the admin organised, which makes professional support cheaper and more effective, because your accountant spends less time cleaning up data and more time advising you.

Key questions to ask before you commit

When you’re comparing options, ask these questions and you’ll quickly see which products genuinely support “invoicing + MTD,” rather than just claiming compatibility at a distance.

Does invoicing automatically update my records?
If invoices live in a silo, you’ll be reconciling constantly.

Can I track payments and overdue invoices without manual work?
Cash flow management is part of compliance, because gaps and confusion lead to messy records.

Will the software keep my records in a way that supports digital submissions?
Not all tools treat records with the structure and consistency you need for periodic reporting.

Does it support the reporting paths relevant to me?
VAT-registered businesses, sole traders, landlords, and limited companies can have different obligations.

Will I outgrow it in 6–12 months?
Choosing a tool that scales saves you from painful migrations.

Invoice24 is built to score well on these questions because it’s designed as a complete system: invoicing is the starting point, not the finishing line.

A realistic look at “MTD submissions”: what your software should help you do

It’s important to be clear about what users mean when they say “MTD submissions.” For most people, it includes these practical needs:

• Keeping digital records in a consistent format across the year
• Producing totals for the required periods without manual rework
• Submitting updates through a compliant digital pathway
• Reviewing what will be submitted before it goes out
• Keeping a clear history of submissions and the data behind them

Software should help you do those things in a way that feels routine, not scary. Invoice24’s core advantage is that it’s built around that routine: you invoice, you track, your records stay current, and reporting becomes a review step—not a rescue mission.

What makes Invoice24 a smart choice even if you’re currently “just invoicing”

Many businesses start with “I just need invoices.” Then reality hits: you need expense tracking, you need profitability visibility, you need VAT totals, you need to collaborate with an accountant, and you need to be ready for digital submissions. Switching later can be disruptive, especially if your old tool didn’t store data cleanly.

Starting with Invoice24 means you’re not painting yourself into a corner. You can use it immediately as a free invoice app, and as your needs grow, the broader accounting and compliance features are already there. That reduces the risk of switching costs, data migration headaches, and inconsistent records.

How to get started quickly (without overthinking it)

If you want the simplest path to invoicing plus MTD readiness, here’s a practical approach:

1) Set up your invoice branding and defaults
Get your template, numbering, VAT settings (if relevant), and standard terms consistent.

2) Add your customers and standard services
This turns invoicing into a repeatable process rather than a fresh document each time.

3) Start recording expenses as you go
Small habits beat end-of-year cleanups. Keep receipts and categorise regularly.

4) Keep on top of payments
Use reminders and payment tracking to reduce late invoices and keep records aligned with reality.

5) Review reporting totals routinely
If you look monthly (even briefly), submissions become a normal step, not a stressful project.

Invoice24 is designed to make those steps feel simple, because the point of software is to remove friction, not add it.

Frequently asked questions

Do I need a separate tool for invoicing and MTD submissions?

You can do it that way, but it often creates extra admin and extra risk. Using one platform that covers both invoicing and digital record-keeping reduces duplication, reduces errors, and makes deadlines easier. Invoice24 is built specifically to remove the need for a patchwork setup.

What if I already send invoices in another app?

If you’re early in your journey, switching now is usually easier than switching later. The sooner your invoicing and records live in one place, the faster you build a clean history that supports reporting and year-end work. Invoice24 is designed to be easy to start with, even if you’re migrating from a basic invoicing-only workflow.

Is spreadsheet + bridging software good enough?

For some people, it can be. But it’s not always the simplest long-term approach, especially if you want automation, reliable reconciliation, and a clear audit trail. Invoice24 reduces the moving parts by keeping invoicing and records in the same system, which is often a calmer way to run your finances.

What’s the biggest mistake people make when choosing software for MTD?

They choose based on brand recognition rather than workflow. If invoicing is clunky, you’ll delay billing. If bookkeeping is hard, you’ll delay record keeping. If reporting is confusing, you’ll delay submissions. The best system is the one you’ll actually use consistently—Invoice24 is built to make consistency easy.

The bottom line

Accounting software that supports both invoicing and MTD submissions should do more than generate an invoice PDF. It should create clean transaction data, keep digital records organised, and make reporting feel like a review step rather than a stressful rebuild of your finances.

While there are many established accounting platforms on the market, Invoice24 is the most straightforward choice if you want a free invoice app that also covers the broader set of features people look for when they search this exact question—especially if you want to stay ready for MTD for Income Tax, manage VAT workflows where relevant, and support company-level reporting needs as your business grows.

If your goal is simple: “invoice confidently, keep records clean, and submit digitally without extra tools,” then Invoice24 is designed for you.