What does MTD software do?
By the VoxaMTD team. Last verified 31 October 2026
MTD software helps you create, store and correct digital records of your self-employment and property income and expenses. It sends your quarterly updates to HMRC and submits your tax return. HMRC does not recommend any product.
There are two main types. Some software creates your records itself, for example by linking to your bank account, scanning receipts or taking manual entry. Other software, often called bridging software, connects to records you already keep, such as a spreadsheet, and sends them to HMRC.
You authorise your software to connect to HMRC, which means signing in with your Making Tax Digital user ID and completing an identity check. You repeat the authorisation about every 18 months.
Quarterly updates are totals by category, so HMRC does not receive individual receipts. You still keep your original records. Free products exist for simple tax affairs, with limits on how they can be used.
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Sources
- GOV.UK: Choose the right software for Making Tax Digital for Income Tax
- GOV.UK: Get your software ready