With Making Tax Digital (MTD) now a legal requirement for many UK businesses, choosing the right software has never been more important.
But with so many options out there, how do you know which one is right for your business?
In this quick guide, we explain what MTD-compatible software is, what features to look for, and a few popular options to consider.
Check these articles if you want to learn more about Making Tax Digital:
What Is MTD-Compatible Software?
MTD-compatible software is any accounting program that can:
- Keep your digital business records
- Link directly to HMRC to submit VAT returns or (in future) Income and Corporation Tax
It’s designed to replace spreadsheets and manual entry with digital systems that reduce errors.
Moreover, they make it easier to be compliant in line with Making Tax Digital.
What Features Should You Look For?
Every business is different, but here are the key features most small businesses will benefit from:
- HMRC-recognised MTD compatibility
- Easy invoicing and expense tracking
- Bank feed integration
- Mobile app access
- Support for VAT and/or Income Tax submissions
- User-friendly dashboard and reports
If you’re working with a bookkeeper or accountant, check if they support the software you’re considering.
At Legacy Figures Accountancy, we focus on your finances so you can focus on what matters to you and your business using MTD-compatible software.
Want to learn more? Let’s have a chat.
Popular MTD-Compatible Software Options
Here are some trusted choices for UK small businesses:
- FreeAgent – Great for freelancers and small businesses, included free with some bank accounts
- Xero – Scalable and easy to use, ideal for growing businesses
- QuickBooks – Widely used, with strong reporting and VAT support
- Sage Accounting – Long-standing UK brand with strong MTD features
- Zoho Books – Affordable and user-friendly with MTD features built in
Most providers offer free trials, so take time to test them before committing.
Final Thoughts: What’s Best for You and Your Business?
Choosing the right software can feel overwhelming, but it doesn’t have to be.
The best MTD-compatible software is the one that fits your business size, budget, and workflow.
Need some help or got more questions?
👉 Get in touch today for a friendly, no-obligation chat.
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