MTD Software Types Compared: All-in-One vs Bridging

Short answer

There are two main types of MTD for Income Tax software: products that create your digital records, and bridging software that connects to records you already keep (for example in a spreadsheet). Use HMRC's free software finder for a personalised list. HMRC does not recommend any product. All listed software has been through HMRC's recognition process. Last checked against GOV.UK: 13 October 2026.

Last checked by hand against GOV.UK: 13 October 2026. Sources are linked in each section. HMRC updates its guidance, so always check the source before you act.

The two types, side by side

GOV.UK describes software that either creates digital records, or connects to records you already keep.

Type	What it does	Typical fit
Creates digital records	You enter income and expenses in the product (bank feed, receipt scan, or typing). Most of these products also send quarterly updates and the tax return.	You want one place for bookkeeping and HMRC submissions.
Connects to existing records (bridging)	Links to records kept elsewhere, such as spreadsheets or another accounting tool, then makes submissions to HMRC. Some bridging products send quarterly updates and the tax return.	You already keep books in a spreadsheet or other tool and only need the HMRC link.

Source: GOV.UK – Choose the right software for MTD for Income Tax (last checked 13 October 2026).

Features to check before you buy

After you pick a type, GOV.UK says the product (or products) you use must:

support all your MTD income sources (self-employment, UK property, foreign property as relevant)
let you send quarterly updates and submit your tax return
allow you to report other income on the tax return (for example pensions, savings, dividends, or a partnership profit share)
work with your accounting period (standard tax year, calendar update periods, or neither)

Also consider whether it supports multiple agents, whether it has HMRC Assist, and whether the price (including free products with limits) suits you. If you are VAT registered, check whether your VAT software also works with MTD for Income Tax, or that your chosen product covers VAT.

Source: GOV.UK – Choose the right software for MTD for Income Tax.

Using more than one product

You can use more than one product, but only one product for each separate submission to HMRC. For example, a landlord cannot use two products to send property quarterly updates.

Examples GOV.UK gives for using more than one product: separate products for separate income sources (builder and landlord), or one product for records and quarterly updates and another for the tax return. If you combine products, they must work together for all MTD requirements, including digital links between them.

Source: GOV.UK – Choose the right software; digital links: GOV.UK – Create digital records.

Use HMRC's software finder

HMRC no longer publishes a static table of every product on the choose-software page. Use the finder tool instead: answer a few questions and get a personalised list. All listed software has been through HMRC's recognition process. HMRC does not recommend any product.

Open HMRC's MTD software finder

Sources: Find software that works with MTD for Income Tax; Choose the right software (both last checked 13 October 2026).

If you keep records in a spreadsheet

A spreadsheet can hold your digital records, but it cannot send anything to HMRC. You need recognised bridging software digitally linked to it. See our separate guide: Can I use a spreadsheet for MTD?

Our TaxYearSheets kits are record-keeping spreadsheets laid out in HMRC's quarterly categories. They are not HMRC-recognised software and cannot submit updates. Use them with bridging software of your choice from HMRC's finder.

Not sure you need MTD yet? Use the free MTD checker.

Questions

Does HMRC recommend any MTD software?

No. GOV.UK says all software in its finder has been through HMRC's recognition process, but HMRC does not recommend any product or provider.

Can I use a spreadsheet plus separate software?

Yes. GOV.UK describes bridging software that connects to existing records such as spreadsheets. If you use more than one product they must be digitally linked, and you can only use one product for each separate submission to HMRC.

What must MTD software do?

GOV.UK says your software (or combination of products) must create, store and correct digital records of self-employment and property income and expenses, send quarterly updates, and let you add other income and submit your tax return by 31 January after the tax year.

Where do I find recognised products?

Use HMRC's software finder on GOV.UK. It asks a few questions and gives a personalised list of compatible options for sole traders, landlords and agents.

A short email 1–3 weeks before key UK tax dates: Making Tax Digital quarterly updates, the 31 January Self Assessment deadline and the end of the tax year. Each one says what's due and who it applies to, and links to the GOV.UK source.

How often: about once a month, never more than 2 a month.
What else: occasionally a note about our record-keeping spreadsheets. No spam, and we never share or sell your address.
Leave any time: there's an unsubscribe link in every email.

Not tax or legal advice. This free tool shows dates and figures worked out from the GOV.UK and legislation.gov.uk rules linked on each page, checked on 13 October 2026. Rules change and your situation may differ – always check the source, and speak to an accountant, solicitor or HMRC if unsure. TaxYearSheets is not connected to HMRC or the government.