Can I keep using spreadsheets for MTD? Bridging software explained

Written by the Quidtrail team · Facts last checked 18 October 2026

The short answer: yes. HMRC says you can keep using spreadsheets for Making Tax Digital for Income Tax, but you'll also need bridging software. That's compatible software that connects to your spreadsheet and sends your quarterly updates to HMRC, and ideally submits your tax return too. Your spreadsheet and the bridging software have to be digitally linked: no retyping, and no copying and pasting once a record has been sent to HMRC (GOV.UK; GOV.UK).

What bridging software is

HMRC describes two types of MTD software (GOV.UK):

If your bridging product doesn't submit the tax return, you'll need a second compatible product for that. You can use more than one product, but only one product for each separate submission. A landlord can't split their property updates across two products (GOV.UK).

The government has said that people using spreadsheets "can continue to do so", with bridging software, and that it will keep working with developers so there are free and low-cost products (GOV.UK impact note).

The digital link rules

If you use more than one product, for example a spreadsheet plus bridging software, your records have to be digitally linked. Set this up when you start, or at least before you send updates or submit your return (GOV.UK).

Allowed ways to link include (GOV.UK):

• linked cells in spreadsheets, such as a formula that mirrors another cell
• emailing a spreadsheet so the data can be imported
• moving records on a memory stick or pen drive for someone else to import
• XML or CSV import and export, and downloading and uploading files
• automated data transfer
• API transfer

Not allowed once a record has been sent to HMRC in a quarterly update:

• retyping it into another cell or another piece of software
• cut and paste, or copy and paste, to move it

You don't need to link:

• records of non-MTD income, such as dividends or savings
• software that isn't used to create MTD records, such as a booking system or till
• software you only use to submit the tax return, because it gets the data directly from HMRC
• your records with your co-owner's records, if you jointly let property

What your spreadsheet records need to show

Each record needs the amount, the date and the category, using the Self Assessment categories (GOV.UK). If your turnover for a business is under £90,000, sole traders can simply mark each item as income or expense. Residential landlords also have to flag restricted finance costs (GOV.UK).

Keep separate records for each sole-trader business. All your UK properties count as one business (GOV.UK).

Keep your records for at least 5 years after the 31 January deadline, along with your supporting documents (GOV.UK).

Correcting mistakes

Make the correction in your spreadsheet, then let the digital link carry it through to your bridging software. It will go in your next update. After the fourth update, you can resend that update or adjust the category total (GOV.UK).

Switching bridging software

If you change bridging software during a tax year, link the new product to your spreadsheet and remove the link to the old one (GOV.UK).

Spreadsheet or full accounting software?

These points come from HMRC's guidance, not from our own use of any product.

Bridging may suit you if you already keep tidy spreadsheets, have few transactions, or your accountant works from your spreadsheet.

Full record-keeping software may suit you if you want bank feeds or receipt capture and fewer manual entries. HMRC notes that bank feeds may still miss some transactions, and that you're responsible for checking accuracy (GOV.UK).

Checklist for any bridging product (check with the provider):

• Is it listed on HMRC's software finder? The finder has a filter for bridging software.
• Does it submit the tax return as well as quarterly updates?
• Does it support all your income types: self-employment, UK property, foreign property?
• Does it work with your spreadsheet layout, or does it need a template?
• Does it support your accounting period? Standard update periods are the default, and calendar periods are an option.
• Can your agent use it?
• What does it cost over a full year?

Bridging software options

Below is what some bridging products say about themselves on their official websites, checked on 18 October 2026. They're in alphabetical order. This isn't a ranking or a recommendation and we haven't tested them. Prices and features change, so check the provider's site and HMRC's software finder on the day you choose. The "HMRC finder" column shows what HMRC's finder said when we checked each product on 18 October 2026.

Things to notice, not rank: some free bridging tools don't yet file the year-end tax return. If yours doesn't, you'll need another compatible product for that step. HMRC says software that only submits your tax return doesn't need a digital link to your record-keeping software, because it gets the data directly from HMRC (GOV.UK).

Related: MTD for Income Tax guide · Free MTD software · MTD software costs · MTD quarterly deadlines · MTD software directory (A to Z)

Last checked against GOV.UK on 18 October 2026. Not tax advice.