MTD software for agents: what it must do and how HMRC's software finder helps

acrenvo.com/guides/mtd-software-for-agents, last reviewed 21 October 2026

Ravi is fictional. Ravi is a bookkeeper whose clients are mostly landlords, with a few tradespeople, and over the years they have ended up on a mixture of spreadsheets and accounting products. Now that Making Tax Digital (MTD) for Income Tax has started, Ravi needs to know what software each client must have and whether their current setup will do. For the clients whose setup will not, Ravi also needs a way to find something that works. This guide sets out what GOV.UK says, from an agent’s point of view.

HMRC does not supply the software

The first point is simple but easy to miss. HMRC does not provide software for Making Tax Digital for Income Tax. Every client therefore needs commercial software, chosen by them or by their agent. You, or an agent on your behalf, will need to use commercial software that works with Making Tax Digital for Income Tax to:

• create, store and correct digital records of your self-employment and property income and expenses
• send your quarterly updates to HMRC
• add any other income sources you have and submit your tax return

Two kinds of software

There are different types of software to help you use Making Tax Digital for Income Tax. You can get software that either:

• creates digital records
• connects to your existing records, such as those held in spreadsheets

GOV.UK describes the second kind like this. This type of software will connect to existing records kept in spreadsheets or other accounting tools. It is sometimes referred to as ‘bridging software’. For Ravi’s clients who keep good spreadsheets, that may mean they can carry on as they are, with a product that sends the figures to HMRC. The guide to spreadsheets and bridging software explains that route in more detail.

A client does not have to do everything in one product. GOV.UK says you can choose to use more than one software product, but you can only use one product for each separate submission that you need to make to HMRC. If you use more than one product, you’ll need to make sure they can work together to meet all your Making Tax Digital for Income Tax requirements.

What to check for each client

The software product or products that you choose will need to:

• support all your income sources for Making Tax Digital for Income Tax
• let you make your submissions to HMRC — to send quarterly updates and submit your tax return
• allow you to report all your other income sources to complete your tax return
• work with your accounting period (standard tax year, calendar update periods or neither)

You should also consider whether the software:

• allows multiple agents if you have more than one
• has HMRC Assist built in — this feature provides feedback and highlights errors for your tax return
• offers pricing that suits your budget

The first of those matters to a practice that shares clients with another agent, because a supporting agent’s access is limited. GOV.UK lists what a supporting agent cannot do, and one item on it is that they cannot submit a client’s tax return. Where two agents work on one client, the software has to let each of them do their part. On price, GOV.UK adds a caution about free products: free products are available for those with simple tax affairs but there may be limits on how the product can be used, for example they could have a limited number of transactions.

It also asks you to think ahead. You should check if your software will support that income source in the future. A landlord who is thinking of starting a trade, for example, needs software that can take on that second income source later.

HMRC’s software finder

HMRC’s software finder works a little differently for agents than for individuals. If you’re an agent, you’ll see a list of all compatible software with filter options to help find the right solutions for your clients. All software listed has been through HMRC’s recognition process. HMRC does not recommend any product or software provider.

You can reach the finder from GOV.UK’s page on finding software that works with MTD for Income Tax. GOV.UK also tells clients who have an agent to ask that agent about their choice of software, so clients who are choosing for themselves may well bring the question to Ravi.

Prices and plans

The software finder does not show prices. For the products clients use, Acrenvo’s comparison of MTD software sets out plans and prices with the date we checked each one. The guide to software for a mixed client list explains how to work through a whole practice’s clients.

Questions agents ask about MTD software

You may also find this page useful: Changing or leaving your MTD accountant.