Can you keep using spreadsheets for Making Tax Digital?

The short answer

You can keep your spreadsheet, if it is digitally linked to HMRC-recognised software that does the filing. MTD does not outlaw spreadsheets — it outlaws manually retyping your totals into HMRC. So the spreadsheet stays; you add a piece of software that reads from it and submits.

What "bridging software" actually is

Bridging software is a small, focused tool that reads the figures from your spreadsheet and sends them to HMRC through the MTD connection. It is the "bridge" between a spreadsheet you already keep and HMRC's system. You carry on categorising income and expenses the way you do now; the bridge handles the quarterly updates and the final declaration.

The alternative is full accounting software that replaces the spreadsheet entirely (bank feeds, invoicing, the lot). Which is right for you is a genuine trade-off — we walk through it in spreadsheet vs accounting software.

The rule that catches people out: digital links

Under MTD the numbers must travel by a digital link — an unbroken digital path from your records to the submission, with no manual retyping or copy-paste of the totals in between. That is exactly why you cannot just key your quarterly totals into a website like the old Self Assessment. A spreadsheet on its own has no digital link to HMRC; the bridging (or accounting) software provides it.

Free vs paid — where the options sit

Some bridging tools advertise a free or low-cost tier; others charge a small annual fee. HMRC publishes a list of recognised software (including some free options) on GOV.UK, and "free" often means a limited tier or an introductory price — so check the current terms before you commit. For a plain-English comparison, see our free MTD software guide and the cheapest MTD software roundup.

A sensible plan if you want to keep your spreadsheet

• First, confirm you're even in scope and from when — use our does MTD apply to me? guide and deadline checker.
• Keep categorising little and often — a 10-minute weekly habit beats a quarterly scramble.
• Pick recognised bridging software from HMRC's list and set up the digital link to your sheet.
• Run one quarterly update early to prove the link works before a real deadline.

New to all of this? Start with the MTD sole trader checklist and what you actually send HMRC each quarter.

FAQ

Can I still use a spreadsheet under Making Tax Digital for Income Tax?

Yes. MTD does not ban spreadsheets. But your spreadsheet has to be digitally linked to HMRC-recognised software that files the quarterly updates and final declaration for you. A plain spreadsheet on its own cannot submit to HMRC.

What is bridging software?

Bridging software is a small tool that reads figures straight from your spreadsheet and sends them to HMRC through the MTD connection. It is the 'bridge' between a spreadsheet you already keep and HMRC's system, so you keep your spreadsheet and add filing on top rather than moving to full accounting software.

Why can't I just type my totals into HMRC's website like Self Assessment?

Under MTD the numbers must flow by a 'digital link' — an unbroken digital path from your records to the submission, with no manual retyping or copy-paste of the totals. That is the whole point of the rules, and it is why bridging software (or full accounting software) is needed rather than a manual keying-in.

Is there free MTD bridging software?

Some tools advertise a free or low-cost tier, and HMRC lists recognised software (including some free options) on GOV.UK. 'Free' often means a limited tier or an introductory price, so check the current terms and HMRC's recognised-software list before you rely on it. We keep a plain-English roundup of the cheapest and free options too.

Does a spreadsheet make me MTD compliant on its own?

No. No spreadsheet or template — including any you buy — makes you compliant by itself. Compliance comes from keeping digital records and filing through HMRC-recognised software. Treat a spreadsheet as your record-keeping habit, and the software as what actually files.