Self Assessment Software: Complete Guide for Making Tax Digital Clients
Self assessment software is any program that lets you keep digital records, calculate your tax and file with HMRC. If your qualifying income is over £50,000, you now need software that also meets the separate Making Tax Digital for Income Tax rules, not just any filing tool.
Published 23 September 2026 · Updated 23 September 2026
Self assessment software is any program that lets you record your income and expenses, work out an estimate of tax owed, and send information to HMRC. If you drive for Uber, Bolt or a private hire firm, the right choice now depends on one extra question: whether Making Tax Digital (MTD) for Income Tax applies to you yet.
This guide, checked against GOV.UK guidance in September 2026, explains what self assessment software actually needs to do, how MTD changes the requirement, and how to choose and switch software as a driver with fares, tips and vehicle costs to track.
Key takeaways
- Self assessment software ranges from simple filing tools to full digital record-keeping products; which you need depends on whether MTD for Income Tax applies to you.
- MTD for Income Tax started on 6 April 2026 for qualifying income over £50,000, falling to £30,000 from April 2027 and £20,000 from April 2028.
- Once MTD applies, a plain spreadsheet is not enough on its own; it must link to bridging software to count as a digital record.
- "HMRC-recognised" for ordinary Self Assessment filing is not the same as being listed as MTD-compatible; check the specific GOV.UK list.
- Driver-specific needs, such as importing app statements and tracking mileage, matter as much as HMRC compatibility when choosing a product.
What is self assessment software?
Self assessment software is a program that helps you record income and expenses, estimate your tax, and file with HMRC. Under Making Tax Digital for Income Tax, it must also create digital records and send quarterly updates, not just an annual return.
Do I actually need software, or can I still file by hand?
You can still file without dedicated software if Making Tax Digital for Income Tax does not yet apply to you. In that case you can use HMRC's free online Self Assessment service, or paper forms by the earlier 31 October deadline, with the online deadline and payment due by 31 January as usual, and record your figures however you like beforehand.
If MTD does apply to you, software stops being optional. According to HMRC's guidance on choosing software for Making Tax Digital for Income Tax, you must use compatible software to create, store and correct digital records, send quarterly updates and submit your return. A paper diary or an unlinked spreadsheet no longer meets the rule once you are in MTD.
Many drivers are not sure which category they fall into. Our Self Assessment vs Making Tax Digital guide sets out the full threshold and deadline picture if you need to check your position before reading on.
Does Making Tax Digital change what software must do?
Yes. Ordinary Self Assessment software only needs to help you file an annual return. MTD-compatible software must also keep digital records throughout the year and send four quarterly updates to HMRC, on top of the usual return.
The quarterly update is a summary of income and expenses by category, sent by 7 August, 7 November, 7 February and 7 May. HMRC's guidance on using Making Tax Digital for Income Tax confirms these updates are cumulative totals, not individual receipts, so the software needs to add things up correctly as you go rather than just at year end.
Am I affected by MTD for Income Tax yet?
You are affected once your qualifying income, meaning gross turnover before expenses, passes the threshold for your start date. According to HMRC's guidance on checking if you're eligible for Making Tax Digital for Income Tax, the first threshold was £50,000 from 6 April 2026. It falls to £30,000 from 6 April 2027 and £20,000 from 6 April 2028.
| Qualifying income over | You start MTD on |
|---|---|
| £50,000 | 6 April 2026 |
| £30,000 | 6 April 2027 |
| £20,000 | 6 April 2028 |
HMRC checks this using an earlier tax return you have already filed. If your gross fares are close to any of these figures, it is worth checking your own status directly on GOV.UK rather than guessing, because the software decision below only matters once you know which category applies.
How do I choose self assessment software as a driver?
Choose software by matching three things: your MTD status, the income types you need to record, and driver-specific features such as app statement imports and mileage tracking. Start from your MTD status, since that decides whether you need a full MTD product or a simpler filing tool.
- Confirm whether MTD for Income Tax applies to you yet, and from which date, using your qualifying income.
- List every income source you need the software to handle: self-employment fares, any property income, and any employment income if you also have a payslip job.
- Check the current GOV.UK compatible software list for the specific service you need, either ordinary Self Assessment filing or MTD for Income Tax.
- Shortlist products that import bank feeds or platform statements, so you are not retyping every fare and expense by hand.
- Check whether mileage and vehicle costs can be recorded separately, since these are usually a driver's largest allowable expense.
- Test any free tier's limits on transactions, income sources or quarterly updates before relying on it for a full year.
- Decide whether to keep your own spreadsheet with linked bridging software, or move fully into one product.
Self assessment software vs bridging software vs full accounting software
These three routes all satisfy Making Tax Digital in different ways: full software does everything in one product, bridging software connects your existing spreadsheet, and basic filing software only works if MTD does not yet apply to you.
| Route | How it works | Best for |
|---|---|---|
| Full self assessment / MTD software | Records income and expenses, sends quarterly updates and files the return in one product | Drivers who want one system and are comfortable moving away from a spreadsheet |
| Bridging software | Links an existing spreadsheet to HMRC's MTD service without full migration | Drivers who already keep a working spreadsheet and only need a digital link |
| Basic filing software or HMRC's free service | Files an annual return only, with no quarterly update capability | Drivers not yet in MTD, with straightforward income |
What does 'HMRC-recognised' actually mean?
HMRC-recognised means a product has been tested to connect to a specific HMRC service, either Self Assessment filing or Making Tax Digital for Income Tax. A product recognised for one is not automatically recognised for the other, so always check the list for the exact service you need.
HMRC does not build or sell this software itself. According to its guidance, taxpayers must use commercial third-party software, and more than 60 products were listed for MTD for Income Tax in early 2026, covering both paid and free options. Always check the current list on GOV.UK before choosing, since recognition and free-tier terms can change between tax years.
A mistake drivers often make
Assuming any tax app that mentions HMRC is automatically MTD-ready. Some tools handle ordinary Self Assessment filing well but cannot send MTD quarterly updates. Check the specific list for MTD for Income Tax rather than a general search result, and re-check if you are close to a threshold date.
Illustrative example: choosing software around a threshold
This is an illustrative example using an invented driver. Imagine a private hire driver whose 2024/25 tax return showed gross fares of £54,000 and profit of £31,000. Because £54,000 is over £50,000, MTD for Income Tax applied to her from 6 April 2026, regardless of her lower profit figure.
Before 2026 she recorded fares in a personal spreadsheet and filed once a year using HMRC's free online service. Once MTD applied, that spreadsheet alone no longer met the digital records rule, so she added bridging software that reads her spreadsheet totals and sends them to HMRC each quarter, by 7 August, 7 November, 7 February and 7 May, with her tax return still due by 31 January.
Her tax bill is worked out the same way as before; only her record-keeping and reporting rhythm changed. Our tax calculator can give a starting estimate of tax on a given profit figure, though it does not replace software records once MTD applies.
Common software mistakes and what they trigger
| Mistake | What it can trigger |
|---|---|
| Using a plain spreadsheet with no bridging link once MTD applies | Records may not meet the digital records rule, risking a penalty point for a late or invalid update |
| Relying on a free tier's transaction cap without checking it | Records go missing mid-year, forcing a rushed switch close to a deadline |
| Assuming Self Assessment recognition covers MTD too | Software cannot send quarterly updates when the driver needs it to |
| Not recording mileage or vehicle costs as they happen | Time-consuming reconstruction later, and a higher chance of an inaccurate return |
| Ignoring a software provider's withdrawal or compliance notice | Records fall behind, risking a missed quarterly update or return deadline |
Missed MTD deadlines carry penalty points. According to HMRC's guidance on penalties for Making Tax Digital for Income Tax, you get one point per missed quarterly update or return deadline, and reaching 4 points triggers a £200 penalty, with a further £200 for each additional miss. HMRC has said it will not apply points to late quarterly updates in the 2026/27 tax year, though the annual return deadline of 31 January 2027 is unaffected and still carries the usual penalties. Check GOV.UK for the current position before relying on this easement in a later year.
If HMRC has already raised a query or penalty over your records, professional representation is recommended rather than trying to resolve it through the software alone.
Key terms
- MTD: Making Tax Digital, HMRC's programme requiring digital records and, above a threshold, quarterly updates.
- Qualifying income: gross turnover from self-employment and property before expenses.
- Bridging software: a tool that links a spreadsheet to HMRC's MTD service without full migration.
- Digital records: income and expense records kept in a linked digital format, not paper or an unlinked spreadsheet.
- Quarterly update: a cumulative summary of income and expenses sent to HMRC every three months under MTD.
- UTR: Unique Taxpayer Reference, your ten-digit Self Assessment number.
How Uber Driver Accountant helps
Uber Driver Accountant works only with drivers, and we are independent of Uber and Bolt. Our Making Tax Digital service checks whether MTD applies to you, sets up compliant digital records and handles your quarterly updates and final return, so you are not choosing or learning software alone. Fixed fees start from £20 a month, shown on our pricing page.
If you are still working out your general MTD timeline rather than software specifically, our Making Tax Digital explained for Uber drivers guide is a good starting point, and our HMRC mileage log and record-keeping guide covers the records most drivers need software to hold.
Conclusion
Self assessment software only needs to be as complicated as your situation requires: a free filing tool if you are outside MTD, or genuinely MTD-compatible software, with or without bridging your spreadsheet, once your qualifying income is over the threshold. Check your own numbers before choosing. Contact us and we can confirm your MTD status and set your records up correctly from the start.
Last reviewed 23 September 2026 by the Uber Driver Accountant tax team.
This article is general information and is not personal tax advice. Software recognition, thresholds and penalties can change, so speak to a qualified accountant about your own circumstances. If HMRC has raised a dispute or penalty, professional representation is recommended.
Questions drivers ask about this
Would you rather not think about any of this?
That is exactly what we are for. Send us your Uber statements and we will handle the return, the quarterly updates and the deadlines — and tell you honestly if there is a better way for you to be set up.
