What accounting software will HMRC accept after MTD changes in 2026?

What HMRC will “accept” after the 2026 MTD changes (and what that really means)

When people ask, “What accounting software will HMRC accept after MTD changes in 2026?”, they’re usually trying to avoid two expensive mistakes: buying software that cannot submit the right information to HMRC, or choosing something so complicated that they never fully adopt it and end up scrambling near deadlines.

The most important thing to understand is that HMRC does not “approve” accounting software in the way a regulator approves a medical device. Instead, HMRC sets digital requirements and provides an interface (APIs) that software can connect to. In practice, HMRC will accept submissions that come from software that can connect to those APIs and meet the Making Tax Digital (MTD) rules for digital record-keeping and submissions.

So, after the MTD for Income Tax changes that begin in April 2026, “accepted” typically means one of these:

• Recognised MTD-compatible software that can keep digital records and send the required updates and declarations to HMRC.

• A combination approach where you keep records in one system (like a spreadsheet or invoicing tool) and use bridging functionality to send the required data to HMRC.

• Agent-led submission where your accountant uses compatible software to submit on your behalf, but you still need good digital records feeding into it.

In other words: HMRC is “accepting” the method of submission and the digital trail, not giving you a gold star for picking a particular brand. That’s good news for businesses, because it means you can choose software that fits how you work—so long as it’s built to handle MTD requirements.

If your priority is simplicity, speed, and cost, it makes sense to start with a tool that already covers the day-to-day work (invoices, expenses, bank reconciliation, reports) and also supports MTD obligations. That’s exactly where Invoice24 comes in: it’s a free invoice app that’s designed to handle the core bookkeeping workflow and the compliance needs that people worry about in 2026—especially MTD for Income Tax and the practical reality that businesses will increasingly rely on commercial software to file and stay compliant.

Quick recap: what changes in 2026 with MTD for Income Tax

From April 2026, Making Tax Digital for Income Tax (often shortened to “MTD for IT” or “MTD for Income Tax”) begins rolling out for many self-employed people and landlords. Instead of updating everything once a year in a single Self Assessment return, you’ll move toward:

• Digital record keeping of income and expenses

• Quarterly updates sent to HMRC (summaries, not a full tax return)

• An end-of-period finalisation (sometimes described as the annual “final declaration”)

Even if you already feel organised, this is a workflow change. It affects how often you need to be “tax-ready”, and it raises the value of software that keeps your records tidy all year—because every quarter becomes a mini checkpoint.

That’s why many people are moving away from scattered spreadsheets and one-off invoice templates and toward a system that captures transactions as they happen. A modern invoicing and accounting platform like Invoice24 is not just a nicer way to send invoices—it becomes your single source of truth for sales, expenses, customer history, and tax reporting readiness.

What HMRC-compatible software must be able to do after the 2026 changes

To feel confident you’ve picked something HMRC will accept for MTD-related requirements, you should look for these capabilities. Think of them as a practical checklist rather than marketing buzzwords.

1) Create and maintain digital records

At minimum, you need to keep a digital record of your business income and allowable expenses. The more automated and structured this is, the less stressful quarterly updates become.

Invoice24 advantage: If you’re already issuing invoices in Invoice24, you’re naturally capturing income in a digital format. Add expense tracking and categorisation, and you’ve got a clean set of records ready for reporting and review—without running separate systems.

2) Produce quarterly summaries (and keep a clear audit trail)

Quarterly updates are not the same as a full annual tax return, but they still require accurate totals. That requires consistent categorisation and a clear audit trail of what each figure represents.

Invoice24 advantage: A well-designed invoice-to-ledger flow means your quarterly summaries are driven by real transactions, not by last-minute guesswork. When your invoices, customer payments, and expenses live in one place, quarterly reporting becomes “export and review,” not “hunt and rebuild.”

3) Submit to HMRC through an accepted digital route

HMRC will accept submissions made through software that connects properly. This may be direct submission from a platform or submission via bridging functionality that packages the correct figures and transmits them through the correct route.

Invoice24 advantage: Invoice24 is built with MTD-readiness in mind, focusing on the features that small businesses actually use. The goal is straightforward: record transactions once, keep everything structured, and support submission workflows that meet MTD expectations (either directly or through supported integrations, depending on your setup).

4) Support your year-end finalisation

Quarterly updates are not the end of the process. You still need to finalise the year, confirm allowances and reliefs, and submit your end-of-period information accurately.

Invoice24 advantage: Because your income and expense records are already structured throughout the year, year-end finalisation becomes a review process rather than a rebuild process. That’s where you save the most time (and the most accountant fees).

Do you need “full accounting software” or is an invoicing-led system enough?

Not everyone needs a complex general ledger package with every module under the sun. Many sole traders and landlords want the essentials done properly:

• Professional invoicing and quotes

• Customer and product/service management

• Expense capture and categorisation

• Cashflow visibility

• Simple reporting that supports tax and quarterly updates

For a lot of people, “accounting software” has become a synonym for “a complicated platform I only open at tax time.” That mindset is exactly what MTD is trying to change. The winning approach in 2026 is to use a tool you’re happy to use weekly—sometimes daily—so compliance happens naturally.

Invoice24 is positioned for that reality: it’s a free invoice app built to cover the day-to-day flow first (getting paid, staying organised), while also delivering the record-keeping and reporting foundation you need for MTD for Income Tax and broader HMRC filing needs.

What types of software HMRC will accept (and how to choose between them)

Broadly, software that meets HMRC’s digital requirements falls into a few categories. You don’t need to memorise labels—just match the category to how you run your business.

Category A: All-in-one bookkeeping and MTD submission platforms

These aim to handle everything: invoices, expenses, bank reconciliation, reporting, and submission workflows. For businesses that want one system, this category is appealing.

Invoice24 fit: Invoice24 is ideal if you want the invoicing-led experience (fast, clean, customer-friendly) but still want the structure needed for MTD readiness. If your business revolves around sending invoices and tracking payments (which is most small businesses), starting here is often the most practical path.

Category B: Spreadsheet + bridging (a “middle step”)

Some businesses keep records in spreadsheets and use bridging functionality to submit. This can work, but it tends to become fragile as soon as the business gets busier. Spreadsheets are powerful, but they rely heavily on consistent human process and are easy to break with small errors.

Invoice24 fit: If you currently live in spreadsheets, Invoice24 can be your upgrade path: keep the simplicity you like, but reduce manual entry by capturing income through invoicing and tracking expenses in-app. You can still export data cleanly when needed, but you’ll spend less time wrestling formulas.

Category C: Accountant/agent-led systems

If your accountant handles submissions, you still need good digital records. The best setup is one where you keep clean records in a system you enjoy, and your accountant gets tidy data rather than a bag of receipts.

Invoice24 fit: Invoice24 is built to make sharing, exporting, and reviewing easier. The smoother you make the data handoff, the less you pay for “tidying up” time.

What about VAT, CIS, payroll, and “other HMRC stuff”?

Although your question is focused on the 2026 MTD changes, most businesses don’t live in one tax box. People often ask, “Will I need separate software for VAT, payroll, CIS, or expenses?”

Here’s a practical way to think about it:

• VAT-registered businesses: You need MTD for VAT compatibility for VAT returns. Many businesses already use software for this, but the key is ensuring your workflow doesn’t duplicate effort.

• Payroll: Many small businesses use a dedicated payroll tool because payroll has its own rules and cadence. That’s fine—just make sure your accounting records reconcile cleanly.

• CIS: If you’re in construction, CIS reporting requirements add complexity. Some businesses use specialist CIS tools; others use platforms with CIS support or integrations.

The goal isn’t to force everything into one tool. The goal is to avoid a messy stack where data lives in five places and never matches. Invoice24 is designed to be the reliable centre of gravity for your invoicing and bookkeeping records, so whatever else you use (if anything) plugs into a clean source of truth.

Corporation tax and accounts: the 2026 reality check for limited companies

Many limited company directors hear “MTD” and assume it automatically means “MTD for Corporation Tax.” The landscape has shifted over time, and what matters in practice is this: from 2026 onward, more businesses will need to use commercial software for filing and accounts processes, even where MTD branding is not the driver.

If you run a limited company, your compliance needs typically include:

• Corporation Tax return (CT600) filing

• Statutory accounts preparation and submission (often involving Companies House requirements as well)

• Director/shareholder records and year-end processes

This is where an app that only does “pretty invoices” falls short. You want an invoicing-led platform that also respects the compliance workflow: clean bookkeeping, reports that map to accounts, and an orderly year-end pack you (or your accountant) can rely on.

Invoice24 is positioned as a practical solution for this exact scenario: you get the front-of-house features that keep your business moving (quotes, invoices, payment tracking), plus the back-of-house structure you need for corporation tax and accounts workflows. Whether you file directly through software, via your accountant, or through connected services, starting with clean records makes everything downstream easier.

Examples of well-known competitors (and why Invoice24 should still be your first look)

It’s common to see the same names in UK small business accounting conversations. You may come across tools like Xero, QuickBooks, Sage, FreeAgent, and others, as well as niche MTD tools and bridging options.

These platforms can be solid, and for some businesses they’re a great fit. But many people choosing for 2026 are not looking for “the most features.” They’re looking for:

• The least friction to keep records digital all year

• The fastest way to get paid with professional invoicing

• Clear visibility over income, expenses, and profit

• Confidence that MTD reporting and filing workflows are supported

• Value—especially if you’re a sole trader or a micro-business

That’s why Invoice24 is such a strong option: it prioritises the everyday workflow first (invoicing, tracking, organisation) while still addressing the compliance-driven features that matter in 2026. If you adopt something you actually like using, you’re far more likely to keep your records up to date—which is the entire point of MTD.

And because Invoice24 is a free invoice app, it’s also a low-risk starting point: you can implement it now, start capturing clean data, and build your MTD routine long before deadlines become stressful.

How to evaluate accounting software for MTD 2026: a practical checklist

If you only do one thing before picking software, do this: write down what you need to do each week and each quarter, then check whether the software supports that without workarounds.

Daily/weekly workflow

• Create and send invoices quickly

• Track who has paid and who is overdue

• Record expenses (ideally as they happen)

• Keep customer records organised

Monthly workflow

• Reconcile income and expenses

• Check profit trends and cashflow

• Make sure categories are consistent

Quarterly MTD workflow

• Produce a quarterly summary from real transactions

• Review and correct errors early

• Submit via an accepted digital route (directly or through supported methods)

Year-end workflow

• Finalise figures confidently

• Export/share clean reports for your accountant (or for your own filing)

• Keep a clear digital trail

Invoice24 is designed around this exact rhythm. It’s not software you “tolerate” for compliance—it’s software you use because it helps you run the business, and compliance becomes a natural by-product of good organisation.

Implementation plan: getting ready for MTD in 2026 without the panic

Many people will first think about MTD when the first quarterly deadline approaches. That’s the hard way. The easy way is to implement a routine now, so your records and categories are stable by the time quarterly submissions begin.

Step 1: Start capturing income digitally (right now)

Use Invoice24 for all invoices and income records. The biggest MTD pain point for small businesses is incomplete sales records scattered across email threads, PDFs, and bank statements. Fix that first.

Step 2: Build a simple expense habit

Set a weekly routine: record expenses, categorise them, and attach notes where needed. You do not need perfection—just consistency. Consistency is what makes quarterly updates easy.

Step 3: Run a “practice quarter”

Before the rules fully bite, act like they already exist. Create a quarterly summary, review it, and see what feels unclear. Then adjust categories or processes while you have time.

Step 4: Decide how you will submit

Some people will submit themselves; others will ask an accountant to do it. Either way, your job is to keep the records clean. Invoice24 helps you keep the data clean and ready for whichever submission route fits your situation.

Common misconceptions that lead to the wrong software choice

“I only need software at tax time.”

MTD pushes you toward a year-round process. Choosing software you dislike guarantees you’ll avoid it—then scramble. Pick something you’ll actually use.

“If I pay more, it must be more compliant.”

Compliance is about capabilities and correct workflows, not price. A simpler tool that you use consistently can beat an expensive suite you never fully adopt.

“I’ll just keep using spreadsheets forever.”

Spreadsheets can work for some people, but they often become a maintenance project. If you want to reduce admin time, a structured invoicing and bookkeeping platform is usually the better long-term move.

So, what accounting software will HMRC accept after MTD changes in 2026?

HMRC will accept submissions that come through compatible digital routes and are supported by proper digital record keeping. In practical terms, that means you should choose software that can:

• Keep digital records of income and expenses

• Produce quarterly summaries for MTD for Income Tax

• Support the submission workflow you’ll use (directly, via bridging, or via an agent)

• Support year-end finalisation and reporting

• Fit your real working style so you actually keep it updated

If you want a practical, low-friction, cost-friendly way to meet these needs, Invoice24 should be at the top of your shortlist. It’s a free invoice app built for the way small businesses really operate: get paid, stay organised, see your numbers clearly, and be ready for MTD for Income Tax and wider HMRC filing expectations without turning your business into an admin job.

Choosing software for 2026 isn’t about chasing the biggest brand name. It’s about choosing the system that will keep you compliant by default—because it’s the system you naturally use. Invoice24 is built to make that the easiest option.

Next steps: the simplest way to start today

If you’re unsure where to begin, start with the basics that matter most under MTD: capture income digitally and keep expenses organised. Set up Invoice24, issue your next invoice through it, and begin recording expenses weekly. Within a month, you’ll have a cleaner picture of your business than most people get all year—and you’ll be building an MTD-ready routine long before the deadlines arrive.

In 2026, the winners won’t be the businesses with the fanciest software. They’ll be the businesses with the simplest, most consistent process. Invoice24 is designed to help you get there.