Quick answer
You need third-party software recognised for MTD for Income Tax: bookkeeping software that submits to HMRC, or bridging software that connects a spreadsheet. HMRC lists compatible products, including free ones, on GOV.UK.
Why you need software
HMRC doesn’t provide its own app for MTD for Income Tax. You need software from a third-party provider that can keep your digital records and send your quarterly updates and final declaration to HMRC.
The main types
All-in-one bookkeeping software: records transactions, often with bank feeds and receipt capture, and submits to HMRC.
Bridging software: connects a spreadsheet you already use to HMRC and sends the figures for you.
Your accountant’s software: some accountants give clients access to the software they use and file on their behalf.
What to check before you choose
It supports the income you have: self-employment, UK property, overseas property, or a mix
It handles both quarterly updates and the final declaration, not just one of them
It can cope with more than one business if you need that
Bank feeds and receipt capture, if you want less manual entry
Your accountant can access it, if you use one
The price, and what’s included on any free plan
Where to find compatible software
HMRC publishes a software finder on GOV.UK that lists products recognised for MTD for Income Tax. You can filter by the features you need, and it includes some free options.
I already use software for VAT
Being compatible with MTD for VAT doesn’t automatically mean a product works for Income Tax. Check that your current provider supports MTD for Income Tax before you rely on it.