If you have signed up for Making Tax Digital for Income Tax and already feel unsure about your software, you are not stuck with it.
Many sole traders and landlords choose software quickly because the rules feel urgent. Later, they may realise the system is too expensive, too complicated, or not suited to the way they actually keep records.
The good news is that HMRC allows you to change compatible software at any time. The important part is not whether you can switch, but how you handle your digital records when you do.
If the switch is handled badly, you could end up with broken digital links, missing current-year records, or old records you can no longer access when you need them. If it is handled properly, changing software can be a sensible way to make MTD easier and less stressful.
Can You Change MTD Software After You Sign Up?
Yes. HMRC says you can change the software you use for Making Tax Digital for Income Tax at any time.
Signing up for MTD does not lock you into one software provider permanently. You may want to move because your current software is too expensive, too difficult to use, not suitable for landlords, or simply not working well with your bookkeeping process.
You may also be able to use different compatible software for different income sources, provided your overall setup still meets HMRC’s MTD requirements.
Changing MTD Software During the Tax Year vs After Year-End
The practical rules are different depending on whether you change software during the tax year or after the end of the tax year.
This distinction matters because HMRC still expects you to keep complete digital records and submit accurate quarterly updates and end-of-year information through compatible software.
If You Change Software After the End of a Tax Year
This is usually the simpler situation.
If the tax year has already ended, HMRC says you do not need to import your digital records from previous tax years into your new software. However, you must still keep those old digital records securely and make sure you can access them if needed.
In plain English, this means you can move to a new system for the next tax year without rebuilding old years inside it. However, you should not cancel old access or delete exported files until you are confident your historic records are complete and retrievable.
You must normally keep digital records for at least five years from the submission deadline for the relevant tax year.
If You Change Software During the Tax Year
This is where business owners are more likely to run into problems.
If you use software to create your digital records and you switch during the current tax year, HMRC says you must either import your current-year digital records into the new software or recreate those records in the new software.
The reason is simple: your quarterly updates and year-end position still need to be based on a complete current-year digital record.
If part of the year sits in one system and the rest sits in another, with no proper transfer or recreation, your records can become incomplete or unreliable. That creates extra work later and increases the risk of errors when you submit.
What If You Use Spreadsheets and Bridging Software?
If your main records are kept in spreadsheets and you use bridging software to connect them to HMRC, the process is slightly different.
HMRC says you will need to link your new software to your record-keeping software and remove the link between your old bridging software and your records.
That sounds technical, but the practical point is straightforward: the digital link still needs to work cleanly.
You should not have two different bridging setups both pointing at the same live records, and you should not rely on copy-and-paste workarounds that break the digital trail.
For example, a landlord who starts the year using spreadsheets and bridging software may later move to cloud bookkeeping software. If the first part of the year is not transferred properly, future quarterly submissions may be incomplete or difficult to check.
This is one reason many spreadsheet users benefit from an accountant-led review before switching.
What Records Must You Keep When Changing MTD Software?
Changing software does not reduce your record-keeping responsibilities.
HMRC expects you to keep digital records of your self-employment and property income and expenses using compatible software. You must also keep supporting records in the normal way for Self Assessment purposes.
If you move systems, make sure you keep:
- Current-year records in a complete and usable form
- Previous-year digital records that remain accessible
- Exports or backups if you are leaving a provider
- Evidence that your categories and source data transferred correctly
- Access to any files needed to support future queries, corrections, or amendments
A software switch is not just a subscription change. It is a record-keeping change.
Common Mistakes When Changing MTD Software
The biggest problems usually come from rushing the switch or assuming the new provider will sort everything automatically.
Common mistakes include:
- Cancelling the old software before exporting historic records
- Moving mid-year without importing or recreating current-year entries
- Forgetting to reconnect spreadsheets to the new bridging software
- Losing access to category breakdowns, attachments, or prior adjustments
- Assuming bank feeds alone are enough without checking the records are categorised properly
- Choosing a second system that does not suit the way the business actually works
For some businesses, the cheapest software ends up being the most expensive choice once you factor in cleanup time and correction work.
How to Change MTD Software Safely
A safe switch usually follows a simple process:
- Check exactly where your current records are held.
- Export or secure access to old records before cancelling anything.
- Decide whether you are moving after year-end or during the live tax year.
- If it is a mid-year move, plan how current-year records will be imported or recreated.
- Test that your new setup can produce the records and submissions you need.
- Make sure any spreadsheet or bridging links are updated properly.
- Review the first quarterly update carefully rather than assuming everything mapped correctly.
Even where HMRC’s rules are clear, the practical side can still be messy, especially if you have more than one income source or mixed bookkeeping habits.
When It Makes Sense to Get Help
Changing software can be straightforward if your records are tidy and your business is simple.
However, it is worth getting advice if:
- You are switching in the middle of the tax year
- You use more than one software product
- You keep records partly in spreadsheets
- You have both self-employment and property income
- You are not sure whether your old records will remain accessible
- You want to avoid rebuilding data twice
This is exactly the sort of job where a short review can prevent a much bigger cleanup later.
Frequently Asked Questions
Can I switch MTD software mid-year?
Yes, but you must make sure your current-year digital records are complete. This usually means importing or recreating the records from the earlier part of the year in the new software.
Do I need to tell HMRC if I change MTD software?
In most cases, you do not need to sign up for MTD again. However, your new software must be compatible and properly authorised to connect with HMRC.
Can I still use spreadsheets for MTD?
Yes, in some cases. If you use spreadsheets, you will usually need compatible bridging software to submit information to HMRC while maintaining digital links.
What happens to my old records when I change software?
You still need to keep them securely and make sure they remain accessible. Do not cancel old software access or delete exports until you are confident your records are safely stored.
How AAR Certified Accountants Can Help
If you are unsure whether your current MTD setup is right, we can help you review it before you switch.
At AAR Certified Accountants, we support sole traders, landlords, and small business owners with MTD readiness, bookkeeping processes, digital record-keeping, and practical software setup.
If you need to change software, we can help you do it in a way that keeps your records compliant and your workload manageable.
Before changing systems, it is worth checking that your records, quarterly updates, and digital links will still meet HMRC’s requirements. A short review now can prevent expensive cleanup work later.