Guide
Bridging software, explained
Keep your spreadsheet and let a small tool do the HMRC bit.
Short answer: Bridging software connects to records you already keep, such as spreadsheets, and makes your MTD submissions to HMRC. Source: HMRC.
Two types of MTD software
HMRC describes two types: software that creates digital records (bank feeds, receipt scanning or manual entry) and software that connects to your records, sometimes called bridging software. HMRC.
Does bridging software file my tax return?
Some do. HMRC notes that some bridging products let you both send quarterly updates and submit your tax return. HMRC. Use the Bridging and Files tax return filters in the finder.
When it suits you
- You're comfortable keeping a tidy spreadsheet.
- You have simple income and few transactions.
- You want to keep costs low. HMRC notes free products exist for simple affairs, but they may have limits. HMRC.
Frequently asked
Can I keep using Excel for MTD?
Yes, with bridging software that connects your spreadsheet to HMRC. HMRC.
Can I use two products?
Yes, but only one product for each separate submission, so make sure they work together. HMRC.