123 e-Filing – What You Need to Know
An in-depth look at 123 e-Filing — features, strengths, limitations, and who it's best for.
At a Glance
Key facts about 123 e-Filing at a glance.
| Feature | 123 e-Filing |
|---|---|
| Software Type | Web-Based Tax Filing & MTD Bridging Tool |
| Target Users | Individuals, Sole Traders, Landlords, Expats |
| Income Sources Supported | Sole Trader + UK Property (via Excel bridging) |
| Free MTD Software Plan | Free to register and test; charge per submission |
| MTD Quarterly Updates to HMRC | Yes |
| Final Declaration | Yes |
| Bank Reconciliation | No |
| Automated Bank Feeds | No |
| Invoice Creation | No |
| Receipt Capture (OCR) | No |
| Expense Auto-Categorisation | No |
| Property Portfolio Management | No |
| Tenant Management | No |
| Joint Ownership & Profit Sharing | No |
| Payroll | No |
| HMO Unit-Level Tracking | No |
| HMRC SA105 Box Pre-Mapping | No |
| Spreadsheet Import/Export | Yes |
| Platform | Web browser only |
| GDPR Compliant | Yes |
What Is 123 e-Filing?
What Is 123 e-Filing?
123 e-Filing (123efiling.co.uk) is a UK-based online tax filing service registered in England and Wales (Company Registration No. 10252005), based in Bolton, Greater Manchester. It is HMRC-recognised for Self Assessment personal tax returns (SA100), partnership tax returns (SA800), and Making Tax Digital for VAT. The platform also provides an MTD ITSA bridging tool for self-employed individuals and landlords. Its core differentiator from other bridging tools is its broader tax return offering: users who need to file Self Assessment returns alongside MTD obligations can do both from the same platform.
123 e-Filing operates on a pay-per-submission model, with no annual subscription. Users register for free and can test the software before paying, with charges applied at the point of submission from £2.99 + VAT. Self Assessment returns are charged separately, from approximately £14.99 + VAT per return, with an assisted service option available for those who want an accountant to review or complete their filing. For MTD ITSA, users extract their income and expense data from an Excel spreadsheet (2010 or later) and upload it via the 123 e-Filing website for quarterly submission to HMRC.
Strengths
- HMRC-recognised for SA100, SA800, MTD VAT and MTD ITSA
- Pay-per-submission — no annual subscription commitment
- Self Assessment returns supported — a feature most bridging tools lack
- Assisted filing service available for expats and complex returns
- Supports all SA100 supplementary forms including foreign income
- Free to register and test before paying
- No setup, monthly, or hidden charges
- Online chat support available
Limitations
- Bridging only for MTD — does not create or maintain digital records
- No property management, tenant management, or rent tracking
- No bank feeds, AI categorisation, or receipt capture
- Charges apply per submission, including failed ones in some cases
- Amendments require a separate paid submission (approx. £15+)
- Excel 2010+ required; does not support Google Sheets or older Excel
- Mixed Trustpilot reviews (~3.5 stars, 113 reviews)
- No phone support; chat and email only
- No mobile app; browser-based only
- No formal accounting reports, balance sheet, or P&L
Making Tax Digital Compliance
How 123 e-Filing Handles MTD Compliance
123 e-Filing is HMRC-recognised for MTD ITSA as a bridging tool for self-employed individuals and landlords. The MTD ITSA workflow requires users to extract their income and expenses from an Excel spreadsheet (version 2010 or later) and upload that file to the 123 e-Filing platform for quarterly submission to HMRC. The platform does not create or maintain the underlying digital records — that remains the user's responsibility. 123 e-Filing also supports MTD VAT via the same spreadsheet upload mechanism, and its Self Assessment tax return filing (SA100 and SA800) is its most established and widely reviewed product. The MTD ITSA offering is newer and less documented in third-party reviews than its SA100 product.
| Feature | 123 e-Filing |
|---|---|
| HMRC Recognised (MTD ITSA) | Yes |
| MTD Quarterly Updates | Yes |
| Final Declaration | Yes |
| Digital Record Keeping | No |
| Digital Links Compliant | Yes |
| Sole Trader Income | Yes |
| UK Property Income | Yes |
| Foreign Property Income | No |
| Multiple Income Streams | No |
| Agent Filing on Behalf | Yes |
Property Management
123 e-Filing: No Property Management Features
123 e-Filing has no property management functionality whatsoever. It is a tax filing and bridging submission interface only. It does not track tenancies, manage rent, record compliance document deadlines, allocate expenses to individual properties, or provide any landlord-specific workflows. All property administration must be managed in separate software or spreadsheets. For landlords who already use dedicated property management software and simply need a submission tool, this may be acceptable — but it means 123 e-Filing cannot serve as a single platform for a landlord's digital needs.
| Feature | 123 e-Filing |
|---|---|
| Property Portfolio Management | No |
| Tenant Management | No |
| Rent Tracking | No |
| Property Expense Allocation | No |
| Multiple Property Support | No |
| HMO Property Support | No |
| Joint Ownership/Profit Sharing | No |
| Maintenance Tracking | No |
| Tenant Screening | No |
| Compliance Document Alerts | No |
| Arrears Tracking | No |
Bookkeeping, Accounting & Digital Record Keeping
123 e-Filing: No Bookkeeping — Submission Interface Only
123 e-Filing performs no bookkeeping functions. It is a web interface for submitting tax data to HMRC. For MTD ITSA, the user's Excel spreadsheet is their digital record — 123 e-Filing's sole MTD function is to provide the submission channel for that data. For Self Assessment returns, users enter data directly into the online forms, which mirror the structure of HMRC's own SA100 and SA800 forms. There are no bank feeds, no chart of accounts, no journal entries, and no ongoing digital record management of any kind.
| Feature | 123 e-Filing |
|---|---|
| Cash Basis Accounting | No |
| Chart of Accounts (Pre-built, Landlord-Tailored) | No |
| Journal Entries | No |
| Bank Reconciliation | No |
| Automated Bank Feeds | No |
| Open Banking Integration | No |
| Double-Entry Bookkeeping | No |
| HMRC Box Pre-Mapping | No |
| Xero Integration | No |
| Spreadsheet Import/Export | No |
| Digital Record Storage | No |
Invoicing, Expense Tracking
123 e-Filing: No Expense Tracking or Invoicing Features
123 e-Filing has no expense tracking, receipt capture, invoice creation, or automation features of any kind. It is a submission interface, not a bookkeeping tool. For MTD ITSA purposes, all expense recording and categorisation takes place in the user's own Excel spreadsheet before the file is uploaded for submission. 123 e-Filing does not assist in maximising allowable deductions, flagging uncategorised expenses, or reducing manual data entry time. Users are responsible for the accuracy and completeness of their records entirely independently of the platform.
| Feature | 123 e-Filing |
|---|---|
| Invoice Creation & Sending | No |
| Invoice Customisation/Branding | No |
| Online Payment Collection | No |
| Payment Tracking/Reminders | No |
| Expense Tracking | No |
| Receipt Capture (OCR/Photo) | No |
| Expense Categorisation | No |
| Automated Transaction Matching | No |
| Mileage Tracking | No |
| AI Auto-Categorisation | No |
Reporting & Tax Forecasting
123 e-Filing: No Reporting Features
123 e-Filing produces no financial reports. Once a return or quarterly update has been submitted, the platform's function is complete. There is no dashboard showing portfolio performance, no profit and loss output, no tax estimate, and no financial overview. Users can download a PDF copy of their submitted return for their own records, but this is a record of submission rather than a financial report. All analysis, reporting, and tax planning must take place outside the 123 e-Filing platform, in the user's own spreadsheet or with their accountant.
| Feature | 123 e-Filing |
|---|---|
| Profit & Loss Report | No |
| Balance Sheet | No |
| Trial Balance | No |
| Dashboard/Overview | No |
| Real-Time Financial Data | No |
| Cash Flow Reporting | No |
| Tax Estimate/Forecast | No |
| AI-Powered Features | No |
Collaboration & Mobile Apps
123 e-Filing: Agent Packages and Assisted Service, Limited Collaboration
123 e-Filing offers agent packages for accountants who file on behalf of clients, and an assisted service option where users can pay for their return to be reviewed or completed by a 123 e-Filing tax professional — a feature that goes beyond what most bridging tools offer. However, the platform does not provide real-time shared access between a landlord and their external accountant in the way that a cloud platform would. The MTD ITSA workflow is account-based and submission-focused rather than collaborative. The platform is web-based and browser-accessible on any device, but there is no dedicated mobile app, and the MTD ITSA bridging workflow requires Excel 2010 or later, which limits mobile use for submissions.
| Feature | 123 e-Filing |
|---|---|
| Accountant/Advisor Portal | Yes |
| Multi-User Access | Limited (agent account-based) |
| Agent Filing on Behalf | Yes |
| Bank Integration | No |
| Platform | Web browser only |
| Web Browser Access | Yes |
| FCA Regulated | No |
| GDPR Compliant | No |
Ease of Use, Support & Security
123 e-Filing: Simple Forms with Mixed Customer Service Feedback
123 e-Filing's user interface is built around the structure of HMRC's own tax forms — familiar to anyone who has filed a Self Assessment return before. For straightforward returns and MTD bridging, users consistently report a quick and simple experience. However, Trustpilot reviews reveal recurring concerns about the platform's customer service approach, particularly around charges applied to failed or amended submissions. Some reviewers report difficulty resolving HMRC gateway credential issues with chat support, and note that amendments require paying the full submission fee again. Support is provided via live chat and email; there is no phone support. Overall the Trustpilot rating sits around 3.5 stars from approximately 113 reviews — notably lower than comparable HMRC-recognised bridging tools. 123 e-Filing is GDPR-compliant and its systems meet HMRC's technical requirements as a recognised software provider.
| Feature | 123 e-Filing |
|---|---|
| Phone Support | No |
| Chat Support | Yes |
| Email Support | Yes |
| Help Centre/Knowledge Base | Basic guidance notes |
| FCA Regulated | No |
| Enterprise-Grade Security | No |
Unique Features Only 123 e-Filing Offers
Self Assessment tax return filing (SA100 and SA800)
123 e-Filing is HMRC-recognised for personal and partnership Self Assessment returns — its most established and widely reviewed product. This is a genuine advantage for individuals who want a single provider for both MTD quarterly updates and year-end filing.
Pay-per-submission model — no annual subscription
From approximately £2.99 + VAT per MTD submission and £14.99 + VAT per Self Assessment return, 123 e-Filing charges only when you file. For individuals who file infrequently or want to avoid recurring subscription costs, this model offers predictable, low minimum spend.
Assisted filing service for complex returns
Users can pay for a tax professional at 123 e-Filing to review or complete their Self Assessment return — particularly useful for expats, non-residents, and individuals with complex supplementary pages.
Support for all SA100 supplementary forms including foreign income
123 e-Filing supports the full range of Self Assessment supplementary pages, including those for individuals living abroad or with trust income — covering filing scenarios that go beyond standard landlord or sole trader returns.
MTD for VAT alongside ITSA from a single account
Both MTD VAT and MTD ITSA bridging can be handled within the same 123 e-Filing account. RentalBux does not currently support MTD for VAT.
Who Should Choose 123 e-Filing?
123 e-Filing is the better choice for:
Individuals who need Self Assessment returns filed alongside MTD
123 e-Filing's strongest use case is for people who want to file SA100 or SA800 returns and MTD quarterly updates from the same platform. For expats, non-residents, and those with complex supplementary pages, the assisted service is a further advantage.
Users who want pay-per-submission with no annual commitment
For individuals who are infrequent filers, dislike ongoing subscriptions, or want to pay only when they actually submit, 123 e-Filing's per-submission model eliminates the risk of paying for unused software.
Landlords and sole traders who need MTD VAT alongside ITSA
123 e-Filing covers both MTD VAT and MTD ITSA bridging from a single account. RentalBux does not currently support MTD for VAT.
Individuals with overseas tax filing needs
123 e-Filing supports all SA100 supplementary forms including foreign income pages, and has a user base that includes non-residents filing UK returns from abroad. The assisted service is particularly useful in this context.
Users who already have well-organised Excel records and want the simplest possible filing route
If your bookkeeping is done and you simply need to upload your figures to HMRC without committing to a new platform, 123 e-Filing provides a pay-as-you-go option — though users should be aware of the amendment charge policy before proceeding.