MTD bridging software explained: what it is, why spreadsheets need it, and how to choose (2026/27)
Bridging software is a small tool that reads the category totals from your spreadsheet and submits them to HMRC. If you keep records in Excel or Google Sheets and fall under Making Tax Digital, you need bridging software — or a full accounting package — to send your quarterly updates.
Making Tax Digital for Income Tax has been mandatory since 6 April 2026 for UK sole traders and landlords with combined gross income over £50,000. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. Under MTD you must keep digital records, send HMRC a quarterly update through recognised software, and file a year-end final declaration. Your spreadsheet handles the first part. Bridging software handles the second.
What is bridging software?
Bridging software does one job: it reads the totals from your spreadsheet — one figure per HMRC income and expense category — and submits them to HMRC through its API. That's it. It doesn't do your bookkeeping, categorise your transactions, or replace your spreadsheet. You tell it once which cells hold which totals (this is called field mapping), and it remembers the mapping for every future submission.
Quarterly updates only contain totals per HMRC category, not individual transactions. So the whole pipeline is: your records live in the spreadsheet, formulas add them up into category totals, and the bridging tool carries those totals to HMRC.
The digital links rule: your totals must flow from your records to HMRC by formula or software link at every step. Retyping a figure — or copying and pasting it — into the bridging tool breaks the rules. If your spreadsheet's summary totals are built with formulas, that satisfies the digital links requirement.
Why does HMRC require bridging software for spreadsheet users?
MTD has two halves: digital record-keeping and digital submission. A spreadsheet satisfies the first — spreadsheets are explicitly allowed as digital records. But a spreadsheet can't talk to HMRC's systems on its own. The quarterly update has to arrive through recognised software, and that's the gap bridging software fills. It's the recognised, HMRC-listed piece of the chain, connected to your spreadsheet by digital links.
Without it, your only route would be moving everything into a full accounting package. Bridging software exists precisely so spreadsheet users don't have to.
Can I use Excel for Making Tax Digital?
Yes. Excel — and Google Sheets — are perfectly acceptable for MTD, provided two conditions are met: your category totals are produced by formulas (digital links, not retyping), and you submit through recognised bridging software. Some tools, like VitalTax, run as an Excel add-in so the submission happens inside the spreadsheet itself. Others, like AbraTax, accept uploads including Google Sheets and CSV files.
One helpful simplification: if your turnover is under £90,000, simplified "3-line accounts" reporting may be available — an income total, an expenses total, and profit. Check HMRC's official list of recognised software on gov.uk ("Find software that works with Making Tax Digital for Income Tax") before you commit to a tool.
MTD bridging software comparison
Here are four established bridging options for spreadsheet users, plus the alternative of a full accounting subscription. Prices are as of mid-2026 — always check current pricing before buying.
| Tool | Rough cost | Best for |
|---|---|---|
| VitalTax (Excel add-in) | First submission free, then low-cost annual | Excel users who want to submit without ever leaving the spreadsheet |
| 123 Sheets | From roughly £30–50/yr | Landlords and anyone who wants an established, spreadsheet-first provider with landlord-specific options |
| Easy MTD (standalone app) | Pay-per-submission credits — cheapest entry route | Occasional filers who'd rather pay per submission than subscribe |
| AbraTax | Free tier available | Google Sheets and CSV users, and anyone starting at £0; includes live tax estimates |
| Full accounting software (the alternative) | Typically £10–30/month, i.e. £120–360/yr | People who'd rather replace the spreadsheet entirely with a cloud accounting platform |
Whichever tool you pick, it can only submit what your spreadsheet feeds it. The MTD Quarterly Kit — Landlord Edition and Sole Trader Edition (£19 one-off each) give you a workbook in Excel and Google Sheets with HMRC's exact quarterly-update categories and an automatic, cumulative Quarterly Update sheet — digital-links compliant and bridging-software-ready, with HMRC's API field names included.
How do I choose bridging software? Three questions
1. Excel or Google Sheets?
If you live in Excel, an add-in like VitalTax is the smoothest fit — mapping and submission happen in the file you already use. If you work in Google Sheets, look at tools that accept uploads, such as AbraTax (which takes Google Sheets and CSV files). Spreadsheet-first providers like 123 Sheets are built around this workflow too.
2. Do you want £0 or polish?
If cost is the deciding factor, AbraTax has a free tier, VitalTax's first submission is free, and Easy MTD's pay-per-submission credits are the cheapest entry route. If you'd rather pay a little for a more established workflow, an annual plan from around £30–50 covers it. The genuinely expensive route is a full accounting subscription at £120–360 a year — worthwhile if you want to stop using spreadsheets, unnecessary if you don't.
3. One business or several?
Property income and self-employment income each need their own quarterly updates — separate submissions. If you're a landlord with a side business (or vice versa), check the tool handles multiple income sources, and note that 123 Sheets offers landlord-specific options. Jointly owned property adds a wrinkle too: you only report your share.
How do you connect a spreadsheet to bridging software?
- Sign up for MTD for Income Tax on gov.uk ("Sign up for Making Tax Digital for Income Tax"), using the Government Gateway ID you use for Self Assessment. Some accountants sign clients up for them.
- Pick a recognised tool from HMRC's official software list on gov.uk.
- Structure your spreadsheet so each HMRC category has a formula-driven total. No retyped or pasted figures — that breaks the digital-links rule.
- Authorise the tool with HMRC. Each tool walks you through granting it permission using your Government Gateway login.
- Map your fields once. Tell the tool which cell holds which category total. It remembers this for every future quarter.
- Review and submit before the deadline. The next one is 7 November 2026, covering the quarter to 5 October.
Deadlines then follow every quarter: 7 February 2027, then 7 May 2027 for the full-year update. If you'd like them dropped straight into your calendar with two-week warnings, grab the free MTD Deadline Pack — a calendar file plus a one-page cheatsheet.
Bridging software FAQ
Is bridging software free?
It can be. As of mid-2026, AbraTax offers a free tier, VitalTax's first submission is free, and Easy MTD sells pay-per-submission credits rather than a subscription. Check current pricing before you rely on any of these.
Do quarterly updates mean paying tax quarterly?
No. Quarterly updates are information only. Tax is still paid by 31 January (plus payments on account where applicable). For the 2026/27 tax year, the final declaration and payment are due by 31 January 2028.
What if I make a mistake in a quarterly update?
Quarterly updates are cumulative — each one covers the tax year so far. So an error in a previous quarter is automatically corrected in your next update. There's no resubmission process to go through.
What happens if I miss a submission deadline?
Each late quarterly submission earns a penalty point. At four points, a £200 fine applies. Points expire after 24 months, so one slip won't cost you money — but a pattern will.
I have both rental and self-employment income — is one submission enough?
No. Property and self-employment income each need their own quarterly updates, as separate submissions. Make sure your bridging tool and your record-keeping handle the two income types separately.
Ready to file from a spreadsheet? The MTD Quarterly Kit gives you a bridging-ready workbook with HMRC's exact categories, a "Submit in 20 Minutes" guide, deadline calendar and cheatsheet — Landlord Edition or Sole Trader Edition at £19, or the Complete Bundle at £29, all with free updates for 2026/27.
This article is general information, not tax advice, and buying our kits doesn't create an accountant–client relationship. For your own situation, check gov.uk or speak to a qualified accountant. We are not affiliated with HMRC. Published by Cunniffe & Helm Ltd (England & Wales no. 08990516), trading as MTD Quarterly Kit. Full terms: mtdquarterlykit.co.uk/legal.