Choosing MTD software: what to check

Choosing MTD software is one of the most important setup decisions before 6 April 2026. HMRC-recognised products vary widely — from full cloud accounting to lightweight bridging tools that connect to Excel or Google Sheets. Use this checklist before you subscribe.

Coverage and income sources

• Does it support every income source you have (sole trade, UK property, foreign property, multiple trades)?
• For VAT-registered traders: does it submit both MTD-VAT and MTD-ITSA, or will you run two systems?
• Does it support a main agent plus a supporting agent if you use both a bookkeeper and an accountant?

Quarterly updates and year-end

• Does it handle cumulative quarterly updates correctly — including overwriting earlier numbers when you correct a mistake?
• Does it support the calendar-quarter election if you need it?
• Does it support the year-end Final Declaration? Not all products do yet — verify before subscribing.

Property-specific rules

• Does it separate residential finance costs (mortgage interest) — mandatory even under the three-line easement?
• Does it support BSAS resubmission for Q4 corrections under the joint-property easement?

Compare options in our MTD software comparison and how to choose MTD software guides.