Updated on 12 October 2026

Unrepresented taxpayers face a ‘minefield’ of Making Tax Digital software choices

Press release

The Low Incomes Tax Reform Group (LITRG), part of the Chartered Institute of Taxation, has warned that unrepresented taxpayers face a minefield when it comes to choosing the software they need to comply with Making Tax Digital for Income Tax (MTD). LITRG has called on HMRC to enhance its software finder tool to make it easier for taxpayers to find the package that best meets their needs.

a signpost with vasious signs leading off in all directions, every sign reads the word 'CHOICE'
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In a blog published on its website, LITRG added that it has received feedback from some taxpayers who have described the process as “overwhelming.”1

LITRG testing of HMRC’s software finder2 found some improvements compared with when the tool was first launched, including features and options for filtering search results3. But the research also found that the search tool lacks filters that could improve the search process for users, such as the ability to know which products are easy to use, represent good value for money, or offer ongoing customer support4.

LITRG is recommending that HMRC consider enhancements to its software search tool ahead of the extension of MTD to more taxpayers from next April5.

These would include:

  • Providing clearer information on the customer support options offered by providers (i.e. do they offer phone, email, and/or webchat support).
  • The ability to better understand the costs and pricing structures of software packages, so customers better understand the value of free software packages and can understand more about the services they are paying for.
  • Knowing whether customers can backup the information they provide to prevent data loss, which may impact their ability to meet their filing obligations and change software in the future.

Laura Cumins, Technical Officer at LITRG, said:

“HMRC has made some useful improvements to its software finder tool, but we think more is needed to support unrepresented taxpayers. 

“Today, there are more than 150 software choices available, and there is no single solution that will be right for every taxpayer. Although our view remains that HMRC should provide their own free software for MTD,6 it is important that the software finder tool gives these taxpayers the best chance of finding the commercial software that suits their individual circumstances.

“The proposals we are suggesting will benefit all taxpayers and agents in MTD, but they will be especially useful for unrepresented taxpayers. They are being left to negotiate a bit of a minefield when trying to choose the package that works best and some will find the process daunting.

“These enhancements would mean HMRC can better support taxpayers on their MTD journey, giving them greater confidence that they are meeting their responsibilities."

LITRG has published a dedicated Making Tax Digital Hub on its website providing free, clear and practical guidance for taxpayers to help them understand the new rules. It can be found at https://www.litrg.org.uk/making-tax-digital-income-tax.

Notes for editors

  1. Making Tax Digital Software – Where are we now? (LITRG blog, 7 October 2026).
  2. Taxpayers who are required to take part in Making Tax Digital are required to use free or paid-for third-party commercial software to keep digital records, submit quarterly updates, and file an annual tax return. Unlike self assessment, HMRC does not provide its own, free software for taxpayers to use. (See: Find software that works with Making Tax Digital for Income Tax, HMRC)
  3. The improvements include the ability for taxpayers to view a complete list of all available MTD software or being able to find software based on answers to questions about their individual circumstances. The tool also allows taxpayers to check if their existing accounting software is compatible (if they were using accounting software before being legally required to join MTD.).
  4. To highlight the limitations of the search and filtering functionality, LITRG used the tool to search for software options for a self-employed sole trader with no other sources of income for a tax year ending 5 April. The search tool returned 131 out of 140 options available at the time the research was undertaken.
  5. From April 2027, the threshold for sole traders and landlords taking part in MTD for Income Tax will be reduced from £50,000 of qualifying income to £30,000. HMRC estimates that this will bring a further 1,077,000 people into scope (see: Sole traders and landlords earning more than £30,000 urged to act now, HMRC). 
  6. HMRC to require tax returns through third party software for all those in Making Tax Digital  (LITRG press release, 26 March 2025). 
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