If Making Tax Digital for Income Tax applies to you, now or from April 2027, you need software that keeps your records digitally and sends your updates to HMRC. There are many options, and the right one depends on how you work. Use this checklist to compare them. It is general information, so confirm details on GOV.UK.
1. Is it compatible with HMRC?
Only software that connects to HMRC’s systems can send your updates. Check that the product states it supports Making Tax Digital for Income Tax, and look at HMRC’s list of compatible software. Ask whether it is available now or only planned.
2. Does it cover what you need to send?
You will send quarterly updates and a final declaration. Check how the software handles each step, and what happens if HMRC changes the process.
3. Does it keep digital records?
Your income and expenses must be recorded digitally. See whether the software records invoices, bills and bank transactions directly, or only reads a spreadsheet.
4. How do you get your bank data in?
Look for bank import, matching and rules. Ask whether it uses automatic bank feeds or statement imports (for example CSV, OFX, QFX or QIF), and check your bank supports the option you need.
5. Is it easy to use during a busy quarter?
Try it with real data. If it is slow or confusing, you will avoid it. A free trial lets you test one quarter’s worth of work.
6. Can it handle your income types?
Sole traders, landlords and people with both need the right categories. Check how property income and self-employment income are handled.
7. What does it cost?
Compare the monthly price for the plan that includes Making Tax Digital, not just the cheapest headline plan. Check whether prices are per business, per user or per feature.
8. Can your accountant work in it?
Accountant access with sensible permissions saves time at year end. Check how they are invited and what they can see.
9. What happens to your data?
Ask how you export your records, and what happens if you stop paying. You must be able to keep the records HMRC requires.
10. Is there real support?
A help centre, step-by-step guides and a way to reach a person matter when a deadline is near.
A quick scorecard
- ☐ Supports Making Tax Digital for Income Tax today
- ☐ Quarterly updates and final declaration
- ☐ Records invoices, bills and bank data
- ☐ Suits your income types
- ☐ Clear price for the right plan
- ☐ Accountant access
- ☐ Export and data retention
- ☐ Help when you need it
How AvrioBooks measures up
AvrioBooks keeps invoices, bills and bank statements in one set of books. You connect to HMRC, fetch your obligations, upload and map your income and allowable expenses, review the totals and submit, with a history of every update. It needs the Standard plan (£25 a month per business, excluding VAT) or above and depends on HMRC approval. Bank data comes in by statement import (CSV, OFX, QFX or QIF), not automatic feeds. Books become read-only, never deleted, if you stop paying. See Making Tax Digital software and the quarterly update walkthrough.
Frequently asked questions
How do I know software is compatible with Making Tax Digital?
Check that the supplier states it supports Making Tax Digital for Income Tax and look at HMRC's list of compatible software.
Do I need automatic bank feeds?
Not necessarily. Many people use statement imports with bank rules. Decide how you prefer to get bank data in.
Can I use spreadsheets for Making Tax Digital?
You can keep records in a spreadsheet, but it must be linked to HMRC through compatible software or a bridging tool.
Which AvrioBooks plan supports it?
The Standard plan and above, subject to HMRC approval.
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