10+1 software tools to help you survive MTD

As the April 2026 deadline for Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) looms, accountancy firms and self-employed individuals alike are under pressure to digitise and comply.

Choosing the right software will be critical—not only for meeting regulatory obligations, but also for making tax submissions more efficient, accurate and client-friendly.

With HMRC’s pilot expanding and final testing underway, here are ten plus one MTD-compliant tools that stand out in 2025 for functionality, support and relevance to the evolving needs of the profession.

1. FreeAgent

Now owned by NatWest, FreeAgent has become one of the most accessible MTD ITSA-ready platforms—especially for sole traders and landlords. HMRC has officially approved it for both VAT and Income Tax submissions. A standout feature is its intuitive dashboard, allowing users to track income, expenses and deadlines in real time.

Best for: Sole traders, landlords, and freelancers.
Notable feature: Bank feed integration and automated categorisation.

2. Sage Accounting

Sage remains a powerhouse in small business accounting, with a cloud-first approach and full support for MTD for VAT and ITSA. Accountants value its robust reporting tools, while clients benefit from its clean interface.

Best for: Accountants managing clients with varying complexity.
Notable feature: Easy migration and deep functionality for quarterly updates.

3. QuickBooks Online

QuickBooks offers one of the most recognisable platforms, with excellent support for MTD processes. It supports digital record keeping, seamless invoice tracking, and direct submission to HMRC.

Best for: Small-to-mid-sized businesses looking for rich integrations.
Notable feature: In-product prompts that guide users through MTD tasks.

4. CCH iFirm MTD for Income Tax

Wolters Kluwer’s CCH iFirm is a robust, cloud-based compliance platform tailored to the needs of busy firms managing MTD ITSA obligations. Integrated with CCH Central and compatible with Xero, QuickBooks, and Sage Business Cloud, it allows firms to pull in income and expenses from multiple sources. Its mapped Excel templates also offer flexible bridging for those still working from spreadsheets.

Best for: Mid-sized and larger firms needing a seamless, end-to-end MTD ITSA solution.
Notable feature: Full MTD compliance workflow in one platform, with real-time collaboration and spreadsheet bridging.

5. Xero

With its simple UX and strong accountant portal, Xero continues to lead among cloud accounting tools. It is MTD-approved and particularly suited to firms that need multi-user access and real-time collaboration.

Best for: Accountants with growing digital portfolios.
Notable feature: Built-in MTD VAT and ITSA capabilities with regular updates.

6. Digita Personal Tax (Thomson Reuters)

Digita is designed for professional firms that need a tailored solution for personal tax clients. The software supports quarterly ITSA reporting and final declarations, making it one of the more complete solutions in the HMRC pilot scheme.

Best for: Firms with complex tax workloads or niche portfolios.
Notable feature: Deep control over tax computation and compliance tracking.

7. IRIS Accountancy Suite

IRIS has brought its MTD offering in line with the needs of both VAT and Income Tax filers. Its hybrid model allows for desktop tools integrated with cloud modules. IRIS is known for strong practice management features.

Best for: Mid-sized firms and practices needing desktop-cloud hybrid flexibility.
Notable feature: Practice-wide reporting dashboards and compliance workflows.

8. KashFlow

Now under the IRIS umbrella, KashFlow offers entry-level functionality ideal for micro-businesses. It supports MTD for VAT and is expected to expand further into ITSA support.

Best for: Micro-entities and sole traders.
Notable feature: Simple dashboard and low learning curve.

9. QuickFile

A favourite among smaller practices and budget-conscious users, QuickFile is an HMRC-recognised MTD solution with strong capabilities for bank reconciliation and invoice management.

Best for: Budget-conscious freelancers and small accountancy firms.
Notable feature: Straightforward bridging module for VAT and ITSA.

10. Zoho Books

Still building out its MTD ITSA capability, Zoho Books has been listed on HMRC’s approved providers. It’s ideal for firms already using Zoho’s suite of business tools.

Best for: Digitally fluent firms seeking integrated tools.
Notable feature: Strong analytics and CRM integration.

+1. TaxCalc

A trusted name in compliance software, TaxCalc has been quietly but effectively building MTD ITSA functionality into its Personal Tax module. Designed with smaller firms in mind, its pricing is transparent and competitive. While not as flashy as some rivals, TaxCalc is often praised for its intuitive layout, responsive support and smooth user experience—particularly when navigating quarterly submissions.

Best for: Smaller practices looking for affordable, reliable MTD ITSA support.
Notable feature: Easy-to-navigate Personal Tax module tailored for ITSA quarterly updates.

Choosing the Right Tool

• Full suites like FreeAgent, Sage, QuickBooks, Xero, IRIS, CCH iFirm, and Digita offer end-to-end functionality—record‑keeping, quarterly updates, and final declaration.
• Specialist tools such as FreeAgent for Landlords and Digita focus on personal and property tax, ideal if your client base is niche.
• Budget‑friendly options like QuickFile and KashFlow are fully compliant and user‑friendly for smaller practices.
• Emerging players like Zoho Books may soon fill gaps in the market—an early watch is advised.

Final Thoughts

With less than 10 months until MTD ITSA becomes mandatory, software decisions made now will have long-term consequences.

Whether you’re part of a large practice managing dozens of clients or a sole trader looking to stay compliant, adopting MTD-compatible tools early is essential.

Key criteria to prioritise:

• HMRC-recognition
• Quarterly update readiness
• Integration with bookkeeping tools
• Training and support availability

Early migration also allows firms to iron out workflow issues, support clients in transition, and prepare for future regulatory shifts.