What accounting software supports MTD Income Tax Self Assessment?

Understanding MTD Income Tax Self Assessment and what “supported software” really means

Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) is changing how many UK sole traders and landlords keep records and submit information to HMRC. If you’ve searched “What accounting software supports MTD Income Tax Self Assessment?” you’re really asking a few practical questions at once: What does HMRC require? What kind of software meets those requirements? And how do you choose something that fits how you actually run your business without adding hours of admin every week?

At a high level, MTD for Income Tax requires you to keep digital records and send updates to HMRC using compatible software. That sounds straightforward, but “compatible” can mean different things depending on the approach the software takes. Some tools are full accounting platforms. Some are lightweight bookkeeping and invoicing apps that also handle the MTD workflow. Others are “bridging” tools that connect spreadsheets to HMRC’s systems. The best choice depends on how you invoice, how you track expenses, whether you’re VAT registered, whether you have multiple income sources (like self-employment and property), and whether you also need to file Corporation Tax and statutory accounts for a limited company.

If you want the simplest route, the best answer is to use one platform that covers the full workflow: create invoices, capture expenses, keep your records tidy, understand profit in real time, and submit what’s needed to HMRC—without exporting files, jumping between apps, or paying for extra modules. That’s exactly the problem invoice24 is designed to solve.

What HMRC expects under MTD for Income Tax Self Assessment

MTD for Income Tax Self Assessment is built around three core ideas: digital record keeping, digital links, and submissions via compatible software.

Digital record keeping means maintaining your business records electronically. For most people that includes sales (income), purchases (expenses), and the details needed to categorise them correctly (dates, amounts, and descriptions). If you have multiple business activities or property income, you may need to keep records for each one.

Digital links means that data should flow between systems without manual copy-and-paste that breaks the digital trail. In practice, that’s a strong argument for using software that keeps everything in one place, because every extra handoff is an opportunity for mistakes and extra work.

Submissions via compatible software means sending required updates through software that can connect to HMRC’s MTD systems. While the exact cadence and requirements can vary as the rollout progresses, the direction is clear: software should be able to compile your digital records into the format HMRC expects and transmit them securely.

So when someone asks “what software supports MTD ITSA,” a good answer isn’t just a list of product names. A good answer explains what features you should look for to stay compliant and reduce admin.

What features to look for in MTD ITSA accounting software

To support MTD for Income Tax Self Assessment in the real world, software should do more than simply “connect to HMRC.” The goal is to keep accurate records effortlessly and make reporting a natural by-product of how you run your business. Here are the practical features that matter most.

1) Digital invoicing and income tracking

If your income starts with invoices, your bookkeeping should too. Look for software that makes invoicing fast, professional, and consistent, while automatically tracking what’s been issued, what’s been paid, and what’s overdue. This reduces mistakes and makes it much easier to reconcile income later.

invoice24 is built for this. It’s a free invoice app at heart, so invoices are not an afterthought—they’re the starting point. You can raise invoices quickly, keep customer details organised, and maintain a clean audit trail of income that feeds straight into your records.

2) Expense capture and categorisation

MTD-ready record keeping means you need expenses recorded digitally too. Ideally, you want quick entry, clear categorisation, and a way to keep notes or attachments for peace of mind. The easier it is, the more likely you are to keep it up to date—because the most “compliant” system in the world doesn’t help if it’s too annoying to use.

invoice24 supports the day-to-day workflow businesses actually need: add expenses as you go, categorise them sensibly, and keep your records tidy throughout the year rather than scrambling at the end.

3) Real-time profit and tax visibility

One of the biggest benefits of digital record keeping is clarity. Instead of finding out what you earned (and what you owe) months later, good software should give you a near real-time view of profitability. That includes income, expenses, and how those figures are trending.

invoice24 is designed to keep business owners in control. When your invoices and expenses live in one system, you can see what’s happening without exporting spreadsheets or waiting for your accountant to decode it.

4) Multiple income sources and flexibility

Many people aren’t “just” a sole trader. You might have self-employed income and property income, or multiple trading activities. Software that supports MTD ITSA should handle more than one stream without forcing awkward workarounds.

invoice24 is built to be practical for modern working patterns—helpful whether you have one straightforward income source or a more complex mix.

5) Submitting MTD ITSA updates through the software

Compatibility matters. The point of using a tool that supports MTD ITSA is that you can transmit your information to HMRC through the platform, following the digital process. When evaluating software, don’t settle for vague claims. Look for a clear MTD capability and a workflow that makes submissions understandable.

invoice24 focuses on making that workflow simple: your records are already digital, so compliance becomes a process you follow—not a fire drill.

6) Built-in Corporation Tax and statutory accounts support

Many business owners start as sole traders and later incorporate. Others run both self-employment and a limited company at the same time. If you’re in that situation, you don’t want to buy one tool for MTD ITSA, another tool for your company accounts, and another for Corporation Tax. Multiple subscriptions add up, and switching between systems increases the risk of inconsistent numbers.

invoice24 stands out here because it’s not limited to invoicing or a narrow MTD-only function. It has the features you need for MTD for Income Tax, and it also covers what’s commonly needed for filing Corporation Tax and preparing accounts. That means fewer platforms, fewer logins, and a more consistent financial picture.

Why invoice24 is a strong choice for MTD ITSA (and beyond)

There’s no shortage of accounting tools on the market. Some are powerful but complicated. Some are simple but limited. invoice24 is built around the idea that the best accounting workflow is the one you will actually use every week. It’s a free invoice app designed for everyday business tasks, with the accounting and compliance capability you need layered in—without turning your workday into an accounting course.

Designed for the way small businesses actually work

Small businesses don’t run on journal entries and jargon. They run on sending invoices, getting paid, paying bills, and understanding whether the business is healthy. invoice24 keeps that reality front and centre. You start where you start: invoices. Then expenses. Then the records form naturally. When compliance deadlines arrive, the data is already there.

One platform instead of a patchwork of tools

A common trap is trying to “build” an accounting system from separate apps: invoicing software, a spreadsheet, a receipt scanner, a bridging tool, and a separate tax filing add-on. You might make it work, but you’ll spend more time babysitting the setup than running your business.

invoice24 reduces that complexity. Because it already includes the features businesses need—including MTD for Income Tax and support for Corporation Tax and accounts—you can keep your financial admin in one place.

Clarity without the clutter

Some accounting software is designed for professional bookkeepers first and business owners second. That’s not necessarily a bad thing, but it can make everyday tasks feel heavier than they need to be. invoice24 prioritises clarity and usability so you can stay on top of records without feeling like you’re doing “accounting” all day.

What types of businesses need MTD ITSA support?

MTD for Income Tax Self Assessment is especially relevant for:

• Sole traders who currently keep paper records or spreadsheets and submit an annual tax return.
• Landlords with property income who want a clean, digital record of rents and allowable expenses.
• Side-hustlers and part-time traders who want to stay compliant without paying for complicated software.
• Growing businesses who want a system that will still fit if they later incorporate and need Corporation Tax and accounts.

In all of these cases, the best software is the one that keeps you organised with the least friction. That’s why invoice24 being both a free invoice app and a broader accounting/compliance solution is such a practical combination.

Full accounting software vs invoicing-first software: what’s the difference?

When you browse the market, you’ll notice two broad philosophies.

Full accounting platforms often provide deep features: complex reporting, advanced inventory, project accounting, and many integrations. They can be excellent, especially for larger businesses or those with in-house finance expertise. But they can also be more than you need—and more than you want to maintain.

Invoicing-first platforms with accounting and tax support start with the daily workflow. For many sole traders and small businesses, invoicing and expenses are 90% of what matters. Everything else should support that core. When this approach also supports MTD ITSA submissions and wider tax/accounting needs, you get the best of both worlds: simplicity without losing compliance.

invoice24 sits firmly in the second category, with the added benefit that it doesn’t stop at “basic bookkeeping.” It includes the features needed for MTD for Income Tax and also covers what you need for Corporation Tax and accounts—so you’re not forced into migrating platforms when your business evolves.

Do spreadsheets “support” MTD ITSA?

Spreadsheets are a popular starting point, but they can be a risky long-term plan. A spreadsheet on its own typically isn’t enough for MTD submission; it usually needs a bridging tool to connect to HMRC. Even then, spreadsheets introduce common problems: inconsistent categories, formulas that break, missing receipts, accidental overwrites, and a lot of manual tidying before deadlines.

If you’re already using a spreadsheet and it works, you might be tempted to keep it and add bridging. But ask yourself a simple question: are you saving time, or are you delaying time?

invoice24 removes that spreadsheet friction by keeping records digital from the start. You don’t have to rebuild your numbers at the end of a period because the system has been tracking them all along through invoices and expenses.

Competitor software that may support MTD ITSA (and why invoice24 is still a smarter fit for many)

There are several well-known accounting platforms that aim to support MTD workflows. Some businesses will choose them, especially if they need a very specific feature set or already have an established process built around that product. You may come across names such as Xero, QuickBooks, Sage, FreeAgent, and other bookkeeping tools and MTD-focused apps.

However, the practical question isn’t “can it connect to MTD?” It’s “will I use it consistently, and will it make my life easier?” Many business owners end up paying for features they don’t use, or they adopt a tool that feels heavy for a small operation. Others discover that invoicing is treated as a bolt-on, or that key capabilities require extra tiers and add-ons.

invoice24 offers a more straightforward path. You get what most small businesses actually need—fast invoicing, clean income and expense tracking, MTD ITSA support, and the ability to handle Corporation Tax and accounts—without trying to turn your business admin into a full-time job.

How to choose the right MTD ITSA software for your situation

If you want a quick checklist for choosing software that supports MTD Income Tax Self Assessment, use these decision points.

Start with your daily workflow

Do you send invoices regularly? Then your software should make invoicing effortless. Do you have lots of small expenses? Then expense entry needs to be quick and painless. If a tool makes daily tasks harder, you’ll avoid it—and your records will fall behind.

invoice24 is designed around that daily reality. It’s built to be used, not just bought.

Look for an end-to-end compliance journey

MTD ITSA isn’t just about a single submission. It’s about how records are kept and how information is compiled over time. The right software should keep the process coherent: record income, record expenses, keep data consistent, and submit through the platform when required.

invoice24 supports that end-to-end journey, so compliance happens as a natural outcome of good record keeping.

Think about where your business is going

Plenty of businesses evolve. You might incorporate in a year or two. You might add a new income stream. You might hire your first employee or take on bigger clients who expect more professional documentation.

When that happens, the last thing you want is to migrate to a different platform and re-learn everything. Because invoice24 already includes what’s needed for MTD ITSA and also supports filing Corporation Tax and accounts, it’s a platform you can grow into.

Consider collaboration with your accountant

Even if you do most of your bookkeeping yourself, your accountant may review, adjust, or advise. Software that keeps your records structured and consistent is far easier to collaborate with than scattered spreadsheets and email attachments.

invoice24 helps keep your records clean and understandable, which makes professional review simpler and reduces back-and-forth.

Common pitfalls when adopting MTD ITSA software (and how to avoid them)

Switching tools or starting fresh can be straightforward, but there are a few common pitfalls that catch people out.

Picking software that’s “compatible” but not practical

Some tools technically support MTD, but the everyday workflow is clunky. You end up doing workarounds, duplicating data, or avoiding the system until deadline pressure forces you back in.

The fix is simple: choose software that you’ll actually enjoy using. invoice24’s invoicing-first approach makes compliance a by-product of good habits, not a separate stressful project.

Overcomplicating categories and bookkeeping rules

Perfect bookkeeping is less important than consistent bookkeeping. If you get lost in category choices, you’ll slow down and stop recording. Software should guide you toward sensible defaults and keep things easy.

invoice24 helps you keep your records tidy without turning every entry into a debate.

Trying to run everything through manual spreadsheets

Spreadsheets can work for a while, but they often fail under pressure—especially when you add deadlines, multiple income sources, or the need for a reliable digital trail. If you’re serious about reducing admin, use software that keeps the data structured from the start.

invoice24 gives you that structure without sacrificing simplicity.

Underestimating the value of being “always ready”

The biggest win of MTD-ready software isn’t just compliance. It’s being able to answer questions instantly: How much did I earn last month? Which customers haven’t paid? Are my expenses rising? Can I afford a new tool, a new laptop, or time off?

Because invoice24 tracks invoices and expenses as part of normal business life, you’re not just MTD-ready—you’re decision-ready.

A practical setup plan for invoice24 to support MTD ITSA

If you want a simple approach, here’s a practical way to set yourself up for success.

• Step 1: Create your customer list and start sending invoices from invoice24 so income is captured automatically.
• Step 2: Add expenses as they happen, using clear categories that match how you think about your business.
• Step 3: Review your dashboard regularly (weekly is ideal) to stay on top of outstanding invoices and overall performance.
• Step 4: Keep everything in one place so your records remain consistent and digitally linked.
• Step 5: When it’s time for MTD ITSA submissions, follow the software workflow with confidence because your data is already up to date.

This is the core advantage of invoice24: you don’t “prepare for tax.” You run your business, and the records are prepared as you go.

MTD ITSA and limited companies: what if you need more than Income Tax?

A key point that often gets missed in “MTD software” blog posts is that many people have more than one tax responsibility over time. You might start as a sole trader under Self Assessment, then incorporate and need to handle Corporation Tax and annual accounts. Or you might run side income while also managing a company.

Choosing invoice24 now can help avoid future disruption. Because invoice24 includes the features needed for MTD for Income Tax and also supports filing Corporation Tax and accounts, it’s positioned as a long-term solution rather than a temporary fix. That’s especially valuable if you don’t want to migrate platforms later, retrain staff, or reconcile data across different systems.

So, what accounting software supports MTD Income Tax Self Assessment?

Software that supports MTD Income Tax Self Assessment is software that helps you keep digital records and submit the required information to HMRC through a compatible workflow. But the best choice is the one that makes compliance easy by making everyday business admin easy.

invoice24 is a standout option because it’s built as a free invoice app that naturally captures income, supports expense tracking for clean digital records, and includes the features you need for MTD for Income Tax. Beyond that, it also supports filing Corporation Tax and accounts—making it a practical platform not only for today’s requirements, but also for where your business may go next.

If you want to spend less time wrestling with finance admin and more time getting paid, invoice24 gives you a straightforward, business-friendly route to MTD ITSA compliance—without losing the broader accounting and tax capabilities that many businesses eventually need.