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Clear Books Becomes the First Fully HMRC-recognised MTD for Income Tax Software

By Dominic Sow · 16 October 2025

Clear Books becomes the first HMRC-recognised software for Making Tax Digital (MTD) for Income Tax, approved for both quarterly and end-of-year submissions, empowering UK sole traders, landlords, and accountants with full digital compliance.
Clear Books today announced that it is the first Making Tax Digital (MTD) for Income Tax software to be fully recognised by HMRC for both quarterly updates and end-of-year MTD submissions. This milestone confirms Clear Books’ position as a frontrunner in the government’s digital tax transformation - giving UK sole traders, landlords, and tax agents confidence that they can keep digital records and file all required MTD submissions using Clear Books’ HMRC-recognised system. Why it matters From April 2026, MTD for Income Tax will be mandatory for self-employed individuals and landlords earning over £50,000, extending to £30,000 in April 2027. HMRC recognition confirms that Clear Books has passed all functional and technical standards for both quarterly and annual submissions - a critical assurance for accountants and bookkeepers preparing clients for compliance. “Clear Books is proud to be the first software fully recognised by HMRC for MTD for Income Tax,” said David Carr, Head of Product at Clear Books. “This gives accountants, bookkeepers and taxpayers confidence that they can meet all MTD obligations - from quarterly updates to the end-of-year submission - with one trusted platform.” What’s included Clear Books supports:
  • Quarterly updates and end-of-year MTD Income Tax returns
  • Digital record keeping with bank feeds
  • Agent access for accountants and bookkeepers
  • AI-powered transaction coding
  • Browser and mobile app access
Clear Books offers both free and paid plans, giving users flexibility to remain compliant at no cost or upgrade to advanced accounting tools as their needs grow. Availability

Companies in this story: Clear Books

People in this story: David Carr

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