Software and MTD
Pick your software, then your accountant
Making Tax Digital for Income Tax is built around software. From your start date you need digital records of your income and expenses, and your quarterly updates must be sent to HMRC from a compatible product, by you or by your accountant. HMRC does not make its own product for this and does not recommend any; it publishes a software finder on GOV.UK instead.
The software you choose shapes which firms suit you and what they charge, so it is worth deciding first. There are four broad routes.
Spreadsheet plus bridging software
Suits you if: You already keep a tidy spreadsheet and want to carry on.
Bridging software reads the totals from your spreadsheet and sends the update. Cheapest change; relies on you keeping the spreadsheet accurate.
A full bookkeeping app
Suits you if: You want bank feeds, receipt scanning and less typing.
The app pulls in transactions from your business bank account. More to learn at first, less work each quarter, and most accountants can log in alongside you.
A free product
Suits you if: Your affairs are simple: one business or one property, few transactions.
GOV.UK says free products exist for simple tax affairs, but they may cap transactions. Check you will not outgrow it mid-year.
Hand it to the firm
Suits you if: You would rather not touch software at all.
Send receipts and statements each quarter; the firm keeps the records and files. Usually the dearest option, but the least of your time.
What Bolton firms work with
On the websites of the Bolton practices we checked, Xero is the name that comes up most often, then QuickBooks and Sage. That is a good reason to tell firms up front what you use. If you are on Xero already, a Xero-partner practice can usually log in to your file the day you sign up. If you are on a spreadsheet, ask whether the firm uses bridging software or will want you to move to an app, and whether moving would cost extra.
Two questions save arguments later. First, who pays for the software: some firms include a licence in a monthly fee, others expect you to pay the provider directly. Second, who presses send: GOV.UK notes that each submission can only use one product, so agree whether you or the firm will send each quarterly update. If you will have a bookkeeper and an accountant, check the product lets more than one agent work on your records.
Bolton has already had its MTD briefing
On 25 March 2026, GM Business Growth Hub, the council’s Business Bolton service and The Wellsprings, the council’s innovation hub on Howell Croft Street, opposite the Central Library, ran a session called “Making Tax Digital: What You Need to Know”, aimed at sole traders, landlords and small business owners. The Wellsprings is run by Oxford Innovation Space for Bolton Council and offers flexible offices, co-working and start-up support. If another session is announced, it is a useful free hour before you pay anyone for advice.
Free business support in the borough
GM Business Growth Hub is publicly funded and free to businesses; its EnterprisingYou programme is aimed at the self-employed. Business Bolton is the council’s own business support service, with one-to-one advice and help for people starting out. The University of Greater Manchester, formerly the University of Bolton, on Deane Road, runs business engagement and enterprise support too. None of these replace an accountant, but they can help you set up well before your first update.
Questions to ask about software
- Which products do you support, and can I keep the one I use now?
- Is the licence in your fee or separate, and what does it cost?
- Who sends each quarterly update, me or you?
- Will you set it up for me and connect my bank feed?
- What happens if I add a rental property or a second business later?