Can I use a spreadsheet for Making Tax Digital? Bridging software explained

Checked against GOV.UK · Updated 27 October 2026

Yes, you can keep your Making Tax Digital records in a spreadsheet, but a spreadsheet cannot talk to HMRC, so you also need bridging software that connects to it and sends your quarterly updates. Figures must pass from the spreadsheet to the bridging software through a digital link, such as a file import, not by retyping them or using copy and paste.

How spreadsheets fit into MTD

HMRC describes two types of software: one creates digital records itself, from bank feeds, scanned receipts or manual entry, and the other connects to records you already keep, such as a spreadsheet, and makes the submissions to HMRC. That second type is what HMRC calls bridging software.

HMRC's MTD campaign site says sticking with spreadsheets is fine as long as you use bridging software, while pointing out that spreadsheets lack some of the time-saving features of all-in-one apps. Not sure if MTD applies to you yet? Try the MTD checker.

What your spreadsheet needs to hold

Your spreadsheet is where the digital records live, so each line needs the amount, the date, and a category using the Self Assessment categories. Keep a separate set for each self-employment, and one for your UK property business. The full list is in HMRC expense categories.

If a business turns over under £90,000, a column saying income or expense is enough, although residential landlords must still separate mortgage interest and other residential finance costs.

Digital links: the key rule

When you use more than one product, HMRC requires them to be digitally linked. Its guidance says that once a record has been created and sent in a quarterly update, you must not move it by hand within your record-keeping software or into other software. The examples it gives are retyping figures into another cell or product, and using cut and paste or copy and paste.

HMRC lists these as acceptable ways to link:

• linked cells or formulas in a spreadsheet that pull values from the source cells
• emailing a spreadsheet so someone can import it into other software
• passing records on a memory stick or similar for import
• importing and exporting XML or CSV files, or downloading and uploading files
• automated data transfers and API connections

In practice, let formulas and imports carry every figure from your transaction rows to the totals your bridging software reads.

When you do not need a link

• If one product does everything, there is nothing to link.
• Records of other income, such as dividends or savings interest, do not need linking.
• Tools that do not create your self-employment or property records, such as a booking system or a till, are outside the rule.
• Software used only to file your tax return does not need linking to your record-keeping software, because it gets the data from HMRC.

HMRC's current Income Tax guidance does not mention any grace period or soft landing for digital links. Separately, HMRC will not give penalty points for late quarterly updates in the 2026 to 2027 tax year, but that does not change the record keeping rules. See MTD penalties.

Correcting a spreadsheet record

If you find a mistake, fix it in the spreadsheet, then let the corrected figures flow through the digital link to your bridging software. The correction is picked up in your next quarterly update, because each update covers the tax year so far.

Excel, Google Sheets and other programs

HMRC's guidance talks about spreadsheets in general and does not name any program. Whether you can use Excel, Google Sheets, LibreOffice or Numbers depends on which file types and connections a bridging product supports, so check with the provider before you commit.

Finding bridging software, including free options

HMRC's software finder on GOV.UK lists products that have been through its recognition process. You answer a few questions to get a personalised list, or search for your existing software to check whether it works with Making Tax Digital for Income Tax.

HMRC does not recommend any product. It says free products are available for people with simple tax affairs, but they may come with limits, such as a cap on the number of transactions.

Check the submission type on each listing. Some bridging products send quarterly updates but not the tax return, and you will still need software that can file your return by 31 January. You can use different products for different jobs, but only one product for each separate submission.

Before you choose

• Does it support all your MTD income sources, such as self-employment, UK property and foreign property?
• Can it send quarterly updates and submit your tax return, or will you need a second product?
• Can you report your other income, such as savings or pensions, on the return?
• Does it handle your accounting period, standard or calendar update periods?
• If you have an accountant, can they work with it? See do I need an accountant for MTD.

Keeping the records with Snapfile

Snapfile records receipts, invoices and texts you send on WhatsApp, assigns HMRC expense categories, tracks the tax year and quarter, and exports a CSV. CSV import is one of the linking methods HMRC lists, but whether a particular bridging product accepts a given file is for that product to confirm. Snapfile does not submit to HMRC and is free during early access.

Common questions

Sources: GOV.UK: Create digital records (Making Tax Digital for Income Tax); GOV.UK: Choose the right software for Making Tax Digital for Income Tax; GOV.UK: Find software that works with Making Tax Digital for Income Tax; GOV.UK: Send quarterly updates; GOV.UK (campaign): Making Tax Digital software. This is general information, not tax advice; check GOV.UK or an accountant for your situation.

Related guides

• What records sole traders and landlords need to keep
• Business mileage for sole traders: the simplified rates
• Allowable expenses for sole traders: the full list
• HMRC expense categories for Making Tax Digital
• All guides