MTD for Income Tax: how Dext Solo handles the hard work for you

Making Tax Digital for Income Tax is coming, and for most practices the question isn't whether to act but how to make the quarterly submission process manageable at scale. Dext Solo was built specifically to answer that question: covering everything from collecting client documents to submitting quarterly updates directly to HMRC.

Here's what the end-to-end workflow looks like.

Who Solo is designed for

Solo is built for self-employed individuals and private landlords who are unincorporated, not VAT-registered, and not currently using integrated accounting software. Within a single licence, a client can have up to five income streams, covering both trading income (SA103F) and property income (SA105). That includes scenarios like a client with two self-employment businesses and a rental property, all managed in one place.

Dext is officially recognised by HMRC as an MTD for IT solution and is currently part of HMRC's beta programme, which means quarterly updates can already be submitted through Solo today.

Getting data in: multiple routes for different clients

One of the first practical challenges with MTD is getting clients to submit their records consistently throughout the year rather than handing over a carrier bag of receipts in January. Solo offers several ways to get documents in, and the right method depends on how hands-on each client wants to be.

For practices managing the work themselves, drag and drop and email-in are the most efficient options. For clients uploading their own documents, the Dext mobile app lets them photograph receipts the moment they receive them, whether they're in a van, on site, or at a coffee shop. The image is uploaded and extracted immediately, building a real-time record throughout the quarter.

The WhatsApp upload method is a recent addition and is likely to be particularly useful for sole trader clients. Many of them are already in the habit of messaging their accountant with photos of receipts or screenshots. WhatsApp submission simply channels that same behaviour directly into Solo, removing any friction in the process and keeping a full audit trail. Bank feeds and PDF bank statement extraction round out the options for transaction data.

All income sources now sit in a single workspace rather than separate areas, so there is no confusion about where to upload documents for different income streams. Clients have one login, one cost and sales workspace, and one bank space.

Connecting to HMRC

Connecting an agent account to HMRC is a short process: enter your agent credentials and agent reference number, and Solo confirms the authorisation. From there, existing clients can be connected by selecting them and linking their HMRC business record. For new clients, you add their name and National Insurance number, select their income sources, and the setup is complete.

Importantly, you do not need to connect to HMRC immediately. If you want to get a client set up in Solo and start collecting documents before you are ready to submit, you can do that and add the HMRC connection later.

The automation tools

Once documents are coming in, Solo's automation tools are designed to take the repetitive work off your hands.

Supplier rules work in the same way as the main Dext platform. Setting up rules for regular suppliers means recurring transactions are categorised automatically, without anyone having to come in and process them each time.

Bank rules do the same for bank transactions. For clients who use the bank feed or upload statements, rules can be set up for recurring payments so that categorisation happens automatically and consistently.

Duplicate detection flags when the same item appears more than once — for example, if a client has uploaded both a card receipt and the actual receipt for the same purchase.

Disallowable expenditure is handled through a category mapping system. If a client uses their car for both business and personal purposes, for example, you can create a category with the appropriate split and map it directly to the correct tax return box. Solo then calculates the disallowable element automatically rather than requiring manual adjustments.

Category restrictions give you control over what clients can see and select when they are uploading their own documents. Rather than leaving all categories visible and risking miscategorisation that needs correcting later, you can limit the list to only the categories that are relevant to that client.

Mileage tracking is built in, with GPS tracking available through the mobile app for clients who need to log business journeys.

Sales invoice creation has recently been added, which is useful for clients who are currently sending invoices via Word documents or email. They can create and send branded invoices directly from Solo, and those invoices are automatically captured as income.

Advanced search reads the full text of every uploaded document, not just the key fields. If HMRC ever queries a transaction, you can search by any word that appears on a receipt to locate the relevant paperwork quickly.

Reports and submission

Solo includes two reports: a transaction summary and a financial report. The transaction summary shows everything that has come into Solo and allows you to drill down by income stream, check for anything that may have been missed, and export the report to share with clients if needed. The financial report maps categorised transactions to their tax return boxes, giving you a clean view of the data before submission.

When everything looks correct, the HMRC submissions dashboard shows outstanding obligations and anything already submitted. Clicking into a period brings up a summary of turnover, other business income, and expenditure. Once reviewed and confirmed, the quarterly update is submitted directly to HMRC.

The quarterly side is entirely handled within Solo. For year-end finalisation, Dext integrates with HMRC directly rather than with third-party tax software, which means the quarterly submissions flow into HMRC and you can then complete the final return in whichever compliance software you normally use (see our MTD IT FAQs on mixing software), whether that is Iris, Digital, or another provider. If a client has no additional year-end adjustments such as dividends, capital gains, or pension contributions, the finalisation can be completed within Solo.

How to access a trial

New to Dext: go to for accountants and bookkeepers at the top of the page, and navigate to Solo MTD software. A free 14-day trial is available with no card details required.

Already a Dext partner? Contact your account manager directly to get a trial set up.