Software guide
Can you keep using spreadsheets with Making Tax Digital?
You may not need to abandon a spreadsheet that already works well. Compatible bridging software can connect existing digital records to HMRC, provided the complete setup meets the MTD requirements.
What bridging software does
Bridging software connects records held in a spreadsheet or another accounting tool to the MTD service. Depending on the product, it can create quarterly updates and support the final tax return.
HMRC’s finder asks whether you want to create new records or connect existing ones, so it is the safest starting point for comparing current compatible products.
When a spreadsheet route makes sense
A spreadsheet may suit a small business with straightforward transactions and an established record-keeping routine. It can also avoid the disruption of moving historic data into a new bookkeeping system.
The trade-off is that you remain responsible for maintaining accurate records, consistent categories and a reliable connection between the spreadsheet and submission software.
When full accounting software may be easier
Bookkeeping software may be more useful when you want bank feeds, invoicing, receipt capture, collaboration with an accountant or more automation.
Compare the full annual cost and make sure the particular plan—not just the software brand—supports every MTD function and income source you need.
Common questions
Quick answers
Does HMRC provide free MTD software?
HMRC provides a finder for compatible commercial products, some of which may offer free plans for certain users. Check eligibility, supported income sources and final-return features carefully.
Can I copy and paste between spreadsheets?
Your overall record-keeping process must preserve the required digital connections. Ask the software provider or your accountant whether your exact workflow complies before relying on manual transfers.
Official sources
Rules can change. Use these HMRC pages to confirm the position for your circumstances.