Top 5 MTD Accounting Software

Making Tax Digital (MTD) is transforming the way UK businesses and accountants manage tax. Instead of manual submissions and paperwork, HMRC is moving to digital records and online tax filings. But which MTD accounting software could make this major change a walk in the park?

This guide will examine the five leading options, concluding with an overview of emerging choices worth monitoring.

What to Look For in MTD Accounting Software

Not all accounting platforms are created equal. When choosing an MTD solution, make sure it offers:

• 🔗 Integrations: seamless experiences without extra steps
• ⚙️ Automation: pre-filled forms, deadline reminders, reduced errors
• 🔒 Security & GDPR compliance: protecting sensitive client data
• 📊 Reporting: insights that go beyond basic compliance
• 👥 Ease of use: quick to pick up for both accountants and clients

The Top 5 MTD Accounting Software

1. Practice Gateway

Practice Gateway is designed with accountants in mind, offering a comprehensive suite of tools to streamline MTD compliance and practice management. Key features include:

• MTD Compliance: Facilitates seamless submission of MTD-compliant returns directly to HMRC.
• Tax Automation: Integrates client data, deadlines, and communications into a unified dashboard.
• Client Portal: Provides clients with secure access to their financial information and documents.
• Automation: Reduces manual data entry through integration with accounting systems.

For more information, visit the Practice Gateway tax solution page.

2. IRIS Accountancy Suite

IRIS offers a comprehensive suite tailored for accountants, ensuring MTD compliance with robust features:

• MTD Integration: Facilitates digital record-keeping and direct submissions to HMRC.
• Comprehensive Tax Support: Supports a wide range of income sources, including sole trader and property income.
• Agent Software: Includes features for agents to manage multiple clients efficiently.
• Quarterly Updates: Ensures the software remains up-to-date with the latest HMRC requirements.
• Desktop Application: Compatible with Microsoft Windows, providing a stable and secure environment.

For detailed information, refer to the IRIS product page.

3. Bright

Bright offers a cloud-based solution with a focus on simplicity and efficiency:

• Digital Record-Keeping: Enables the creation and maintenance of digital records for MTD compliance.
• Bridging Software: Connects to existing records, facilitating seamless data transfer to HMRC.
• Quarterly Updates: Keeps the software aligned with HMRC's quarterly update requirements.
• Web Browser Compatibility: Accessible via Microsoft Windows, Mac OS, and Linux, offering flexibility for users.

Explore more at the Bright MTD Hub.

4. CCH iFirm MTD for Income Tax

CCH iFirm provides a cloud-based solution tailored for accountants managing multiple clients:

• Bridging Software: Facilitates the connection of existing records to meet MTD requirements.
• Tax Return Capabilities: Supports the preparation and submission of tax returns directly to HMRC.
• Agent Software: Designed to handle the complexities of managing multiple clients' tax affairs.
• Quarterly Updates: Ensures the software remains compliant with HMRC's quarterly update requirements.
• Cross-Platform Compatibility: Accessible via web browsers on both Microsoft Windows and Mac OS.

For more details, visit the CCH iFirm product page.

5. Digita Personal Tax

Digita Personal Tax offers a comprehensive solution for accountants dealing with diverse income sources:

• Digital Record-Keeping: Supports the creation and maintenance of digital records for MTD compliance.
• Bridging Software: Connects to existing records, facilitating seamless data transfer to HMRC.
• Tax Return Capabilities: Enables the preparation and submission of tax returns directly to HMRC.
• Comprehensive Income Source Support: Includes support for sole trader, UK property, foreign property, and various other income sources.
• Quarterly Updates: Keeps the software aligned with HMRC's quarterly update requirements.
• Web Browser Compatibility: Accessible via Microsoft Windows, offering flexibility for users.

For more information, refer to the Digita MTD page.

MTD Accounting Software in Development: What’s Coming Next?

HMRC also maintains a list of software in development for MTD. These are tools that will soon be recognised and may bring new features.

You can check the current list of in-development providers here.

Final Thoughts

Selecting the right MTD software is crucial for accountants to ensure success for the practice and it’s clients satisfaction. Each of the above solutions offers unique features tailored to different practice needs. Consider factors such as client base, preferred platforms, integrations, and specific feature requirements when making your choice.

All we know is the automation revolution has accelerated with the introduction of MTD. Choosing to use a software that plays well with everyone like Practice Gateway is your opportunity for uncapped efficiencies… so seize it!