HMRC compatible software checklist
Use a practical checklist to choose HMRC compatible software that supports digital records, submissions and review evidence.
MTD Income Tax is now a live planning issue for businesses comparing HMRC compatible accounting software. The phrase compatible software should mean more than a submit button; it should cover the whole evidence chain. This guide narrows the job to compatible software selection, so the business can move from annual clean-up to a repeatable quarterly review.
For wider context, use Making Tax Digital and Software . If the topic affects a filing deadline, software choice or tax treatment, confirm the live position before acting. The workflow below is designed to keep the evidence in one place so the owner, bookkeeper and accountant can all review the same record.
Official point to verify
GOV.UK says MTD Income Tax software needs to create digital records, send HMRC quarterly updates and submit the tax return. The official software finder is the place to confirm current product capability. Check the current wording in GOV.UK MTD Income Tax software guidance before making a binding filing, software or tax decision.
What to control
| Area | Control | Why it matters |
|---|---|---|
| Digital records | Confirm the system stores the required transaction detail | Submissions must come from digital records |
| Submission type | Check VAT, Income Tax or both | Different MTD regimes have different APIs |
| User roles | Set owner, bookkeeper and accountant permissions | Access control protects the file |
| Receipts | Save HMRC acknowledgements and exportable reports | A filing receipt is part of the audit trail |
Review routine
Build the routine around monthly bookkeeping rather than waiting for the quarterly deadline. Reconcile the bank, clear uncategorised transactions, review owner drawings or property transfers, then let the software produce the update totals. The accountant should review exceptions, not rebuild the ledger.
A useful review note should answer three questions: what source evidence was used, what judgement was applied, and who approved the treatment. Keep that note beside the transaction or period report rather than in a separate inbox.
Common mistakes
- Confusing bridging software with full bookkeeping control
- Choosing software without testing the accountant workflow
- Keeping critical categories in offline notes
The best prevention is a short, repeated checklist. If a control is too complicated to run every month or quarter, it will probably fail when the deadline is close.
How ReAI helps
ReAI helps by keeping invoices, bank imports, receipts, review notes and accountant access in one place. That makes quarterly MTD work a by-product of ordinary bookkeeping instead of a separate spreadsheet exercise. For hands-on help with setup, see Accounting Assistance for Small Businesses .
Summary
Treat HMRC compatible software checklist as a recurring accounting control, not a one-off admin task. Put the source data, review owner, exception list and submission evidence in the same system before the deadline arrives. That makes compliance work easier to check and much less dependent on memory.