Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) is being rolled out in phases and is scheduled to begin in April 2026 for many self-employed people and landlords. This means you’ll soon need software that can keep digital records and send updates to HMRC.
If you wait until the deadline, you’ll be under pressure to find a solution quickly. Now is a great time to compare options, try trials and arrange migration set up and support.
At Turas Accountants, we have already researched and tested platforms to help our clients choose what fits best for their business and needs.
What must MTD software do?
When you compare packages, make sure the software you choose actually supports every part of the workflow you need:
- Keep digital records that are MTD-compatible and maintain the required digital links between records and submissions.
- Send quarterly updates to HMRC (not all bookkeeping tools submit the same types of returns).
- Support Self Assessment (ITSA) submissions where needed – some products handle quarterly updates but don’t submit full Self Assessment returns.
- Integrate with bank feeds, receipt capture and e-commerce connectors so your books are complete automatically.
- Provide reporting and audit trails you and your accountant can rely on for tax planning and checks.
Software Turas Accountants commonly work with (and why)
Turas recommends cloud accounting and complementary apps that reduce manual work and keep you compliant with all of the Making Tax Digital legislation.
Xero
Turas Accountants are Xero Gold Partners and use Xero extensively for live reporting, bank feeds, receipt capture (Hubdoc) and automation that feeds directly into the accounts your accountant reviews. Xero’s system makes it straightforward to create the digital links MTD requires.
Xero has different levels of packages to suit all needs, and some, like Xero Simple are only available via accountants.
FreeAgent
FreeAgent is similar to Xero in many ways, and also provides bank feeds and receipt capture.
FreeAgent can be obtained for free if you bank with NatWest or Mettle, so can be a good option if you are also setting up a new bank account.
QuickBooks
QuickBooks is a good alternative cloud accounting platform to Xero and is commonly used with similar integrations (bank feeds, apps) and may suit different user preferences.
Link My Books (for e-commerce)
If you sell on Amazon, Shopify, eBay or similar, Link My Books specialises in converting high-volume, multi-channel payouts into tidy summary invoices that feed into Xero or QuickBooks. This significantly reduces reconciliation work and helps ensure your e-commerce data is MTD-ready.
Practical checklist: how to research and trial software
You can use this checklist when comparing options for your Making Tax Digital compliant software.
- Confirm MTD compatibility – Can this software submit the quarterly updates required for MTD ITSA and handle Self Assessment submissions (if needed)?
- Test the digital link – During a free trial, import a month of real transactions and confirm the software creates the required digital trail (invoices → ledger → summary → submission).
- Try bank feeds and receipt capture – Connect your live bank feed and upload a handful of receipts (or use Hubdoc/scan apps). Check how easy reconciliation is and whether automatic categorisation is accurate.
- E-commerce & other connectors – If you sell online, trial a connector like Link My Books to see how it summarises transactions and matches bank deposits. This will save hours of manual reconciliation.
- Check Self Assessment flow – If you (or your clients) file Self Assessment returns, confirm the software’s path for preparing and submitting Self Assessment data as not all bookkeeping packages do this by default.
- Review reporting & dashboards – Make sure reports (profit & loss, VAT, tax position) are clear and exportable so your accountant can use them for planning. Xero’s reporting is a strong example of this functionality.
- Security & permissions – Confirm data encryption, user permissions and backup policies. Look out for cyber accreditations as this is a must when it comes to high-value data.
- Costs & scaling – Compare subscription tiers, add-on costs (connectors, payroll, payroll integrations) and migration fees. Think two years ahead, will the software still fit your business if you grow?
- Support & training – Check whether your accountant offers setup, migration and training.
Need help choosing?
If you’d like Turas Accountants in Telford to suggest platforms for your business, test a migration, or help you with training, we’re here to help.
Contact us today to ask us about our ‘getting Making Tax Digital ready’ services.