Quick answer
Bridging software connects a spreadsheet to HMRC so you can keep your records in Excel or Google Sheets and still meet MTD for Income Tax. The spreadsheet must be digitally linked to the bridging software, and records included in an update mustn’t be manually edited or moved.
How it works
You keep your income and expenses in a spreadsheet.
The bridging software reads the totals from the spreadsheet through a digital link.
It sends your quarterly updates and final declaration to HMRC.
The rules
Each record still needs the amount, date and category.
The link between your spreadsheet and the bridging software must be digital, not retyped.
Once a record has been included in a quarterly update, you mustn’t manually edit it or move it.
Who it suits
People with simple books who are comfortable in spreadsheets
Landlords with a few properties and predictable income
Anyone who already has a well-built spreadsheet and doesn’t want to change
When an app is better
If you have lots of transactions, a bookkeeping app with bank feeds usually saves time, because transactions arrive automatically instead of being typed in.
Compare the options in our MTD software comparison.