You may be able to keep your spreadsheet.
Making Tax Digital does not ban spreadsheets. It asks that your spreadsheet is digitally linked to software that can send your figures to HMRC. That software is called bridging software. This page explains the rules, the real cost of a full year, and when a bridge is the wrong choice.
Last checked 23rd September 2026.
What bridging software does
Bridging software sits between your spreadsheet and HMRC. You keep your records in the spreadsheet as you do now. The bridge reads the totals, or the individual records, and sends your quarterly updates and, in most cases, your year-end tax return to HMRC. HMRC describes it as software that will connect to existing records kept in spreadsheets or other accounting tools
, and says it is sometimes referred to as 'bridging software'
.
For someone whose spreadsheet already works, a bridge is often the cheapest and least disruptive way to meet Making Tax Digital. You do not have to learn a new accounting system or move years of records.
The rules your spreadsheet must follow
HMRC's guidance on digital records sets out three things that matter for spreadsheet users.
Each record needs the basics. For every item of income or expense, you record the amount, the date, and a category.
Links must be digital. HMRC gives examples of acceptable digital links, including using linked cells in spreadsheets
, and importing or exporting files, for example by emailing a spreadsheet so the information can be imported into another product.
Your spreadsheet and bridging software must be digitally linked. HMRC says that if you use more than one product, You need to digitally link your record-keeping software and software that uses your records to make submissions to HMRC.
Do not retype or copy and paste records between them. HMRC's examples of what you must not do include copy information by writing it out in another cell or in other software
and use 'cut and paste' or 'copy and paste' to move records
.
In practice. Set your spreadsheet up so that summary figures are formulas that point at your records, and let the bridging software read the file. Avoid retyping totals into a separate sheet or into the software.
Bridging routes we have checked
| Route | Cost for a complete year | What the price covers | Main catch |
|---|---|---|---|
| My Tax Digital | £0 | Quarterly updates and the year-end return, for self-employment and UK property | Browser-based; check any wider accounting needs separately |
| ANNA | £0 in the 2026 to 2027 tax year | Quarterly filings and one final update for 2026 to 2027, from ANNA's spreadsheet template | The free offer is stated for the 2026 to 2027 tax year only; later years' price not stated |
| Coconut MTD Bridging | £99.98 | £49.99 for the quarterly bridge, plus £49.99 for the annual submission | The headline £49.99 does not include the year-end submission |
Provider pages checked 22nd and 23rd September 2026. Other bridging products are listed on HMRC's software finder; we add them to our database once we have checked their full-year price. Prices change, so check the provider's own page before you sign up.
Compare the cost of a whole year
The most common trap with bridging software is the headline price. Some products charge one price for the quarterly updates and a second price for the year-end submission. Coconut is a clear example: its bridging is £49.99, and the annual submission is another £49.99, so a complete year costs £99.98. We always add the pieces together before we rank a route, because you cannot meet Making Tax Digital with the quarterly updates alone.
When a bridge is a good fit
A bridge makes sense if your spreadsheet is already accurate and up to date, you are comfortable keeping it that way, and you do not need invoicing, bank feeds or receipt capture. Landlords with a small number of properties, and sole traders with simple income and expenses, often fall into this group. If that is you, start with the free routes above.
When it may be the wrong fit
If keeping your spreadsheet up to date is already a struggle, a bridge will not fix that; it only sends what the spreadsheet contains. Bookkeeping software that pulls in bank transactions and sorts them may save you more time, and several options are free. Our free MTD software page compares them. A bridge may also be the wrong fit if you are VAT registered and want one product for everything, or if you want your accountant to work alongside you in the same software.
Remember too that HMRC says you can only use one product for each separate submission. For example, a landlord cannot use more than one product to send quarterly updates of property income.
Questions people ask
Can I still use a spreadsheet for Making Tax Digital?
Yes, as long as your spreadsheet is linked to software that can send your quarterly updates and tax return to HMRC. HMRC describes software that connects to records kept in spreadsheets, sometimes called bridging software.
Can I copy and paste figures into bridging software?
No, not as the way you transfer digital records from your spreadsheet to the bridging software. HMRC requires the products to be digitally linked before you make submissions. Acceptable links include linked spreadsheet cells and importing or uploading files.
Is there free MTD bridging software?
Yes. In our checked data, My Tax Digital offers a free bridging mode that covers quarterly updates and the year-end return, and ANNA offers a spreadsheet route with a free offer stated for the 2026 to 2027 tax year.
Does bridging software do the year-end tax return?
Not always. Some bridging products charge separately for the year-end submission. Coconut, for example, charges £49.99 for quarterly bridging and another £49.99 for the annual submission. Always compare the cost of a complete year.
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Sources
- GOV.UK, Create digital records, checked 23rd September 2026.
- GOV.UK, Choose the right software for Making Tax Digital for Income Tax, checked 23rd September 2026.
- My Tax Digital, ANNA and Coconut's own pages, checked 22nd and 23rd September 2026. The address for each is in our comparison database.