What is MTD compatible, MTD approved or MTD ready software?
If you’re VAT registered, or fall within the scope of Making Tax Digital (MTD) for Income Tax, HMRC legally requires you use software that is compatible with MTD.
This is accounting or record-keeping software that can connect directly to HMRC’s systems to meet the legal requirements of Making Tax Digital (MTD).
To make finding MTD software easier, HMRC provides a recognition process where it checks if the software is capable. However, it adds that this not mean it endorses or recommends any software over any other.
Sage Accounting is recognised in this way for both MTD for VAT, and MTD for Income Tax.
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