Making Tax Digital explained

HMRC-recognised software: what it means for UK sole traders.

From April 2026, HMRC will only accept quarterly updates and final declarations from software that meets the Making Tax Digital specification. Ovaro is not on HMRC's recognised list and does not submit to HMRC. It keeps your invoices, expenses and mileage as digital records, so you or your accountant have the figures ready to file.

What HMRC requires

The MTD checklist — and how Ovaro covers it.

Digital record keeping

HMRC says

Every income and expense item kept in digital form.

Ovaro does

Every invoice, receipt, mileage trip and payment is digital the moment it's captured — voice, photo or tap.

HMRC expense categories

HMRC says

Records tagged to HMRC's Self Assessment categories.

Ovaro does

Built-in HMRC categories on every expense, with smart suggestions so nothing ends up in 'misc'.

Quarterly updates

HMRC says

Income and expense totals submitted to HMRC every quarter.

Ovaro does

Quarterly summaries roll up automatically — ready to review. You submit through HMRC or recognised software.

Final declaration

HMRC says

An end-of-year declaration replacing Self Assessment.

Ovaro does

Year-end position calculated continuously, with a clean export your accountant (or you) can file.

VAT support

HMRC says

MTD for VAT for VAT-registered businesses.

Ovaro does

VAT at 0%, 5% and 20% on invoices and expenses, plus VAT-period summaries.

Audit trail

HMRC says

Records preserved for at least 5 years after the 31 January deadline.

Ovaro does

Encrypted cloud storage with full edit history on every record — no lost receipts, no rebuilds.

UK-registered

Invoice Ovaro Ltd · Companies House 15979982 · registered in England & Wales.

MTD specification

Built end-to-end against HMRC's published Making Tax Digital for Income Tax spec.

Accountant-friendly

Clean CSV export, HMRC categories, full audit trail — your accountant will thank you.

FAQ

HMRC recognition, answered.

What does 'HMRC recognised' invoicing software mean?

HMRC publishes a list of software products that meet its technical specification for Making Tax Digital (MTD). Recognised software keeps digital records, applies the correct categories, and supports the quarterly update and final declaration workflow HMRC requires from April 2026.

Is Ovaro HMRC-recognised?

No. Ovaro is not on HMRC's list of recognised software and does not submit anything to HMRC. It keeps digital records of your invoices, expenses and mileage so you, or your accountant, have the figures for your tax return.

Will I be able to file my Self Assessment from Ovaro?

No. Ovaro does not file with HMRC. You can export your records so you or your accountant can file your Self Assessment on the HMRC website or through recognised software.

Do I have to use HMRC-recognised software?

Once you're inside the MTD for Income Tax threshold (£50,000 from April 2026, £30,000 from 2027, £20,000 from 2028), yes — HMRC will only accept quarterly updates and final declarations from software on its recognised list, or from bridging software linked to spreadsheets.

What about VAT under MTD?

MTD for VAT is already mandatory for all VAT-registered businesses. Ovaro tracks VAT at 0%, 5% and 20% on invoices and expenses, and produces VAT-period summaries ready for filing.

Can my accountant use Ovaro with me?

Yes. Ovaro exports clean CSV at any point, organised by HMRC's expense categories, so your accountant can review, reconcile and file without rebuilding your books from receipts.

Be ready the day HMRC switches MTD on.

Start now, capture every job and expense the HMRC way, and walk into April 2026 with quarterly updates already done.