When Making Tax Digital arrived on the scene, many landlords and small business owners rushed to choose their accounting software. It seemed straightforward: pick an HMRC-compliant platform, and you’re good to go. But not all HMRC-approved MTD software is created equal, and selecting without testing can create headaches you didn’t anticipate.
The first pitfall is assuming that every approved software fits your workflow. Many platforms advertise the same core features, but subtle differences like how they categorise transactions or integrate with bank feeds can have a huge impact. What seems like a minor inconvenience at the start can become a daily frustration, slowing down bookkeeping and increasing the risk of mistakes.
Another trap is the hidden learning curve. Some software looks simple but has complex menus, rigid reporting formats or quirky processes for entering expenses. Landlords or business owners who don’t try the software before committing often realise too late that basic tasks take much longer than expected. Hours spent navigating unnecessary complexity could have been avoided with a trial period or sandbox testing.
Pricing traps also lurk beneath the surface. Many platforms offer tiered subscriptions with essential features hidden behind premium plans. Without testing, you might commit to a package that appears suitable but ends up costing more once you realise you need the features necessary for your workflow.
The solution is simple. Test before committing. Most HMRC-approved MTD software offers free trials or demo versions. Take the time to explore them, enter real transactions and see how the software handles your specific situation. Pay attention to how it deals with recurring transactions, multiple income streams or any quirks unique to your property or business.
Finally, don’t underestimate support. A platform that offers excellent customer service can save you hours when questions or issues arise. Trialling software gives you a sense of how responsive and helpful support teams really are — a crucial factor when deadlines loom.
In conclusion, picking HMRC-approved MTD software without testing is a trap that can cost time, money and frustration. By experimenting first, checking integrations and ensuring the software fits your workflow, landlords and small business owners can avoid these pitfalls. Choosing carefully ensures your digital record-keeping is not just compliant, but genuinely efficient and stress-free.
