My Tax Digital – What You Need to Know
An in-depth look at My Tax Digital — features, strengths, limitations, and who it's best for.
At a Glance
Key facts about My Tax Digital at a glance.
| Feature | My Tax Digital |
|---|---|
| Software Type | Bridging & Accounting Compliance Tool |
| Target Users | Businesses, Sole Traders, Landlords, Agents |
| Income Sources Supported | Sole Trader + UK Property + Foreign Property |
| Free MTD Software Plan | Yes |
| MTD Quarterly Updates to HMRC | Yes |
| Final Declaration | Yes |
| Bank Reconciliation | Yes |
| Automated Bank Feeds | No |
| Invoice Creation | Yes |
| Receipt Capture (OCR) | No |
| Expense Auto-Categorisation | Yes |
| Property Portfolio Management | No |
| Tenant Management | No |
| Joint Ownership & Profit Sharing | No |
| Payroll | No |
| HMO Unit-Level Tracking | No |
| HMRC SA105 Box Pre-Mapping | Yes |
| Spreadsheet Import/Export | Yes |
| Platform | Web browser only |
| GDPR Compliant | Yes |
What Is My Tax Digital ?
What Is My Tax Digital ?
Trusted by tens of thousands to submit billions in returns since 2019
My Tax Digital (mytaxdigital.co.uk) is a free UK tax portal built and maintained by Open Answers Ltd — a company with over 35 years of experience in specialist Open Systems and Open Source services. Launched in 2019 as both a technical showcase and a social good, My Tax Digital was created on a founding principle: that forcing sole traders and landlords to pay a subscription just to fulfil their legal tax obligations is an unfair financial burden. Since launch, the platform has supported tens of thousands of businesses in submitting their MTD VAT returns, and has now extended this to full MTD for Income Tax Self Assessment support.
My Tax Digital operates in two modes. Bridging mode allows users who keep records in spreadsheets to upload their figures directly for submission to HMRC, establishing the required digital link without requiring them to change their existing workflows. Accounting mode allows users to maintain full digital records of income and expenses within the platform itself, with HMRC categorisation for self-employment (SA103S/F), UK property (SA105), and foreign property (SA106) built in. The platform also includes E-Invoicing, CSV data import and export, an AIsha AI assistant for help and guidance, and a Share Access feature allowing agents and accountants to manage filings on behalf of clients.
Strengths
- Completely and permanently free — no hidden charges or subscriptions
- Supports UK property (SA105), foreign property (SA106), and self-employment (SA103)
- Both bridging software and full accounting modes available
- MTD for VAT also included and free
- Agent and accountant filing on behalf supported
- ISO 27001:2022 certified data security
- Royal Warrant holder — By Appointment to HM The King
- Trusted by tens of thousands of users since 2019
- UK data centres — GDPR compliant
- AIsha AI assistant for guidance within the platform
Limitations
- No dedicated native mobile app (web browser only)
- No property management features
- No automated open banking / bank feeds
- No AI-powered receipt capture or expense automation
- No joint ownership or profit-splitting support
- No landlord-specific chart of accounts or P&L reporting
- No per-property income and expense tracking
- Manual data entry required without bank feed automation
- Limited to compliance filing; no property portfolio tools
- No portfolio-level financial reporting or dashboards
Making Tax Digital Compliance
How My Tax Digital Handles MTD Compliance
My Tax Digital supports all three qualifying income categories — self-employment (SA103S/F), UK property (SA105), and foreign property (SA106) — across both its Bridging and Accounting modes. In Bridging mode, users import their figures from spreadsheets via CSV or Excel and submit directly to HMRC. In Accounting mode, users record digital transactions within the platform, and My Tax Digital handles the categorisation and submission. Quarterly updates are submitted cumulatively — each update shows income and expenses from the start of the tax year up to the end of that quarter. The Final Declaration, which replaces the old Self Assessment return, is also supported.
| Feature | My Tax Digital |
|---|---|
| HMRC Recognised (MTD ITSA) | Yes |
| MTD Quarterly Updates | Yes |
| Final Declaration | Yes |
| Digital Record Keeping | Yes |
| Digital Links Compliant | Yes |
| Sole Trader Income | Yes |
| UK Property Income | Yes |
| Foreign Property Income | Yes |
| Multiple Income Streams | Yes |
| Agent Filing on Behalf | Yes |
Property Management
My Tax Digital: No Property Management Capability
My Tax Digital was designed as a compliance and filing tool, not a property management platform. It does not include property portfolio tracking, tenant management, rent tracking per property, joint ownership or profit-splitting, compliance document alerts, HMO support, or mortgage tracking. Its strength lies entirely in MTD compliance — keeping digital records and submitting returns to HMRC — rather than the operational management of a property business.
| Feature | My Tax Digital |
|---|---|
| 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
My Tax Digital: Simple, Category-Based Digital Record Keeping
My Tax Digital's Accounting mode provides digital record keeping for income and expenses, correctly categorised against SA103, SA105, and SA106 HMRC categories. Users can import bank transactions via CSV, manually add transactions, and categorise them within the platform. The categorisation ensures quarterly updates and the Final Declaration contain the figures HMRC expects. However, My Tax Digital does not offer a formal chart of accounts, journal entries, double-entry bookkeeping, or property-level P&L reporting. It is designed to satisfy the digital record-keeping requirement as simply as possible — not to replace a full accounting package.
| Feature | My Tax Digital |
|---|---|
| Cash Basis Accounting | Yes |
| Chart of Accounts (Pre-built, Landlord-Tailored) | No |
| Journal Entries | No |
| Bank Reconciliation | Yes |
| Automated Bank Feeds | No |
| Open Banking Integration | No |
| Double-Entry Bookkeeping | No |
| HMRC Box Pre-Mapping | Yes |
| Xero Integration | No |
| Spreadsheet Import/Export | Yes |
| Digital Record Storage | Yes |
Invoicing, Expense Tracking
My Tax Digital: E-Invoicing and Manual Record Entry
My Tax Digital includes a basic E-Invoicing feature allowing users to create, preview, download, and reconcile invoices — helping ensure digital records remain complete and MTD-compliant. Expense tracking is manual: users enter or import transactions via CSV, and the platform handles categorisation against the correct HMRC category. There is no OCR receipt capture, no automated bank feeds via open banking, and no AI automation. My Tax Digital's AIsha AI assistant is available to provide guidance and answer questions about using the platform, but it does not automate data entry or categorisation.
| Feature | My Tax Digital |
|---|---|
| Invoice Creation & Sending | Yes |
| Invoice Customisation/Branding | Yes |
| Online Payment Collection | No |
| Payment Tracking/Reminders | No |
| Expense Tracking | Yes |
| Receipt Capture (OCR/Photo) | No |
| Expense Categorisation | Yes |
| Automated Transaction Matching | No |
| Mileage Tracking | No |
| AI Auto-Categorisation | No |
Reporting & Tax Forecasting
My Tax Digital: Compliance-Focused, No Financial Reporting
My Tax Digital does not produce profit & loss statements, balance sheets, or financial reports in the traditional accounting sense. Its output is structured for MTD compliance: it shows submitted quarterly figures and running cumulative totals per income category as required by HMRC. It does not provide portfolio-level reporting, per-property analysis, or any investment analytics. Landlords who need financial reports beyond their MTD submissions — for example for mortgage applications, accountant reviews, or business planning — would need to maintain those records separately.
| Feature | My Tax Digital |
|---|---|
| Profit & Loss Report | No |
| Balance Sheet | No |
| Trial Balance | No |
| Dashboard/Overview | Yes |
| Real-Time Financial Data | Yes |
| Cash Flow Reporting | No |
| Tax Estimate/Forecast | No |
| AI-Powered Features | No |
Collaboration & Mobile Apps
My Tax Digital: Share Access, Agent Accounts, and Web-Based Mobile Use
My Tax Digital supports accountant and agent access through its Share Access feature — users share access with their accountant using the accountant's registered My Tax Digital email address. Agents and accountants can manage unlimited businesses and individuals from a single account, switching between client profiles seamlessly. This makes My Tax Digital a genuinely practical tool for accountants managing many clients at zero cost. My Tax Digital is a web app and does not have a dedicated native mobile app for iOS or Android; however, it is optimised for use in mobile web browsers.
| Feature | My Tax Digital |
|---|---|
| Accountant/Advisor Portal | Yes |
| Multi-User Access | Yes |
| Agent Filing on Behalf | Yes |
| Bank Integration | Yes |
| Platform | Web browser only |
| Web Browser Access | Yes |
| FCA Regulated | No |
| GDPR Compliant | Yes |
Ease of Use, Support & Security
My Tax Digital: Ease of Use
My Tax Digital is a web-based application requiring no download. Its interface is deliberately simple, reflecting its focus on compliance rather than comprehensive accounting. The platform includes a detailed documentation hub with step-by-step guides and video walkthroughs on YouTube. Customer support is provided by email (mytaxdigital@openanswers.co.uk). The AIsha AI assistant is available within the platform for immediate guidance.
| Feature | My Tax Digital |
|---|---|
| Phone Support | No |
| Chat Support | No |
| Email Support | Yes |
| Help Centre/Knowledge Base | Yes |
| FCA Regulated | No |
| Enterprise-Grade Security | Yes |
Unique Features Only My Tax Digital Offers
Completely and Permanently Free — No Subscriptions, No Hidden Charges
My Tax Digital is entirely free for both MTD for VAT and MTD for Income Tax Self Assessment. There are no premium tiers, no feature paywalls, and no hidden fees. My Tax Digital is free for everyone, with no expiry date and no property limit.
MTD for VAT — Free
My Tax Digital covers all MTD for VAT submissions at no cost, supporting Standard Accounting, Cash Accounting, Flat Rate, and Margin Scheme. For VAT-registered landlords or sole traders who need both MTD for VAT and MTD for Income Tax from one free platform, My Tax Digital is a good option.
Bridging Software Mode
My Tax Digital's Bridging mode allows users to continue keeping records in their existing spreadsheets and submit those figures to HMRC directly — establishing the required digital link without migrating to a new system. It accepts .xlsx, .xls, .ods, .csv, and .numbers files.
Enterprise-Grade Security Credentials
Open Answers, the company behind My Tax Digital, holds ISO 27001:2022 certification for information security management, Cyber Essentials Plus certification, and a Royal Warrant as Supplier of Information Technology Services By Appointment to HM The King. All data is stored in secure UK-based data centres. These credentials are exceptional for a free tool and reflect Open Answers' 35+ years of enterprise IT services experience.
AIsha AI Assistant
My Tax Digital includes AIsha — an AI assistant embedded in the platform to answer questions and guide users through the MTD filing process. AIsha helps users navigate the platform, resolve common issues, and understand their HMRC obligations, making the platform more accessible for users with limited accounting knowledge.
No Property Limit on Free Plan
My Tax Digital's free plan has no property limit. Landlords with multiple properties can use My Tax Digital entirely for free — they would need to manage per-property records manually, but the platform imposes no restriction on the number of properties or individuals managed.
Who Should Choose My Tax Digital?
My Tax Digital is the better MTD software choice for:
Landlords and Sole Traders Who Want Zero Cost with No Restrictions
For users who need MTD compliance and nothing else, and for whom cost is the primary consideration, My Tax Digital is the only platform in this comparison that is genuinely and permanently free with no property limit and no expiry date.
Landlords Who Are Comfortable with Spreadsheets
My Tax Digital's Bridging mode is ideal for landlords who already keep accounts in Excel or another spreadsheet and want to continue doing so. Submit your figures to HMRC via My Tax Digital without migrating to new software or changing existing workflows.
VAT-Registered Landlords and Sole Traders
For users who need both MTD for VAT and MTD for Income Tax from a single free platform, My Tax Digital is uniquely positioned — it handles both at no cost.
Accountants Managing Many Straightforward Clients at Zero Cost
My Tax Digital's unlimited individuals/businesses on a free plan makes it an extremely cost-effective tool for accountants whose clients have straightforward income and do not need property management, AI automation, or detailed reporting.
Users Who Prioritise Enterprise-Grade Security Credentials
ISO 27001:2022 certification, Cyber Essentials Plus, and a Royal Warrant from HM The King provide a level of independent security assurance that is remarkable for a free tool — and may matter to users handling sensitive financial data.
Users with Simple, Single-Source Income
Sole traders or landlords with one income stream and limited transaction volumes who simply need to keep digital records and file quarterly updates will find My Tax Digital's straightforward interface more than sufficient.