Answers to Your TaxNav & Making Tax Digital Questions

Will HMRC provide free software?

No. You need to use software from HMRC’s recognised list. TaxNav is one such option, built specifically for landlords and the self-employed.

What happens if my income fluctuates?

Once you’ve joined MTD IT, you only leave if your income stays below the threshold for three consecutive years.

Can my accountant manage this for me?

Yes. They can sign you up and submit returns on your behalf, but you remain responsible for keeping digital records and submitting them on time.

Do I have to abandon my spreadsheets?

No. Spreadsheets remain valid if they’re linked to HMRC using recognised bridging software such as TaxNav. Manual entry or copy-and-paste submissions aren’t allowed.

Will I still need to do a Self-Assessment return?

No. MTD IT replaces the annual Self Assessment for those within its scope. Quarterly updates and a final declaration cover the same ground but with a new structure.

Do I need to scan all receipts?

Physical receipts are acceptable and scanning isn’t required, but you must enter the transaction details into your digital records.

What if I make a mistake in my quarterly return?

You can amend data in your final quarterly return or include missing information in the next submission, as long as it applies to the same tax year. Each update is cumulative and invalidates the previous one because all periods start from the beginning of the tax year.

Can I update more often than quarterly?

Yes. You may update records monthly or weekly if you want more frequent insight into your tax position.

How long does HMRC take to process submissions?

Typically, updates are acknowledged within an hour, much quicker than the current Self Assessment system.

Is there help available for transitioning?

Yes. HMRC provides webinars, articles and a dedicated team to help you adapt to the new system.

Pricing / Free Version

TaxNav offers a free version during this tax year for individuals with simple tax affairs. It includes all features (direct input and spreadsheet imports) for users who sign up and enrol in the HMRC public pilot programme before the end of 2025. Subscription plans start in April 2026 for the 2026/27 tax year at £5 per month (excluding VAT).

Accuracy and Timing

During the pilot scheme, quarterly returns don’t need to be 100 % accurate. HMRC only sees summary totals for each quarter. You can add income and expenses daily, weekly, monthly or at quarter-end; updates can be cumulative or separate.

For Self-Employed People

TaxNav supports HMRC submissions for any trade, including CIS. Income and expenses can be entered manually or imported from spreadsheets; transactions can be amended before submission.

For the Self-Employed and Landlords

One TaxNav licence supports both trade and property income submissions, so separate licences aren’t needed.

Bridging Software

If you prefer spreadsheets, TaxNav’s bridging software lets you continue using Excel while meeting MTD requirements. You import your spreadsheet quarterly and can edit transactions in TaxNav afterward.

Simplicity

TaxNav is designed for non-accountants, with a straightforward interface, step-by-step guidance, video tutorials, email support and a help centre. Most users can start using it in under ten minutes; it works on iPad and smartphones. Further features will be added based on user feedback.

Security

TaxNav uses bank-level encryption, regular security audits and is fully GDPR-compliant. It connects to HMRC via their secure API and doesn’t store HMRC login credentials. If you change providers, HMRC retains your summary data for use with any approved product or accountant.

Future Features

Based on demand, TaxNav plans to add features such as bank feeds and receipt capture using AI tools without increasing prices unnecessarily.

For Joint Property Owners

Joint property owners can either keep full digital records of their share of income and expenses or record single totals for quarterly income and yearly expenses. They may report totals each quarter or report income quarterly and expenses in the end-of-year finalisation.

Final Year-End Submission

At year-end, you can add the usual items (e.g., bank interest, capital gains/losses, pension contributions) to finalise your tax return.