The two types
Software that creates records
Bank feeds, receipt scanning or manual entry. These usually meet every requirement: records, quarterly updates and the tax return.
Bridging software
Connects to records kept in spreadsheets or other tools and makes the submissions. Some bridging products send both quarterly updates and the tax return; some do not.
The list in numbers
| Of 103 HMRC-recognised products | Count |
|---|---|
| Support sole traders (self-employment) | 97 |
| Sole trader products that send quarterly updates and the tax return | 74 |
| Sole trader products with a free version | 18 |
| Free version, quarterly updates and tax return | 14 |
| Offer bridging (connect to spreadsheets) | 68 |
| Quarterly updates only (need a second product for the return) | 27 |
The 27 quarterly-only products are the trap: a client using one will need another product to submit the tax return, and the two must work together.
What GOV.UK says to check
- It supports every MTD income source the client has, and any they expect to add (a sole trader thinking of letting a property, for example).
- It sends quarterly updates and submits the tax return, or you have a second product for the return.
- It can report the client’s other income on the return.
- It works with the client’s accounting period: standard, calendar update periods or neither.
- Whether it allows multiple agents, if the client has more than one.
- Whether it has HMRC Assist, which flags errors using the submissions and HMRC’s data.
- Pricing: free products exist for simple affairs but may cap transactions.
- VAT-registered clients: check whether their MTD for VAT software also covers Income Tax.
Only one product can be used for each separate submission. More than one product is allowed, for example one per business or one for records and updates and another for the return.
A quick shortlist method for practices
- Filter to products that support every income type across your client base.
- Keep only those that submit both quarterly updates and the tax return, unless you deliberately want a split set-up.
- Check multi-agent support and HMRC Assist.
- Trial with two real clients before 6 April 2027.
Open the 103-product software tracker
Sources (GOV.UK, checked 27 Oct 2026)
Common questions
Is there free MTD software for sole traders?
Yes. On 27 October 2026, 18 sole-trader products on HMRC’s finder listed a free version, and 14 of those send both quarterly updates and the tax return. Free versions may limit transactions.
What is bridging software for MTD?
Software that connects to records kept in spreadsheets or other tools and sends the MTD submissions to HMRC.
Does HMRC recommend MTD software?
No. All listed products have been through HMRC’s recognition process, but HMRC does not recommend any product or provider.