Yes — spreadsheets can potentially continue to form part of a Making Tax Digital for Income Tax setup. The key is that your spreadsheet needs to work with compatible software so the required information can be sent digitally to HMRC.
This is commonly achieved using bridging software. HMRC lists compatible products but does not recommend one particular provider.
Independent guide from MTD Together • Not HMRC • Always check GOV.UK for the definitive rules
Bridging software is a tool that sits between your spreadsheet and HMRC. It takes the relevant figures from your digital records and submits them to HMRC in the format required for Making Tax Digital.
Not every spreadsheet or every bridging product automatically meets HMRC requirements. You need to use software that HMRC recognises as compatible with Making Tax Digital for Income Tax, and your records must be appropriate for the submission.
No. MTD for Income Tax does not automatically mean abandoning Excel and signing up to a large accounting package. The right setup depends on how you currently keep your records and what compatible software you choose.
If you're weighing up the broader software options, our Which Making Tax Digital software should I use? guide walks through the decision in more detail.
MTD for Income Tax requires digital records of your relevant self-employment and property income and expenses. HMRC says a digital record includes the amount, date and category of each income or expense item. In practice, this means:
Your relevant self-employment and property income, together with the expenses you want to claim, should be recorded digitally so they can be submitted correctly through compatible software.
HMRC says a digital record should normally include the amount, the date, and the category of each income or expense item. The exact format depends on the compatible software you use.
MTD does not mean every document has to exist only digitally. Normal Self Assessment record-keeping requirements still apply to supporting documents such as invoices, bank statements and receipts.
For the full rules, see HMRC's official Making Tax Digital for Income Tax guidance.
Here's a simple illustration of how a sole trader might keep using Excel with MTD:
You continue recording your income and expenses in Excel or another spreadsheet, making sure the records are organised and complete.
You pick software that is recognised as compatible with Making Tax Digital for Income Tax and that works with your spreadsheet setup.
The bridging software sends your quarterly updates and end-of-year information to HMRC in the correct digital format.
This is an illustrative example, not individual tax advice. Your own setup should match your circumstances and use software that HMRC recognises as compatible.
Not necessarily. Excel with bridging software can suit some people very well, while others may prefer full accounting software. Here's how to think about it:
Neither approach is universally better. The right choice is the one that fits your records, your confidence with technology, and your budget.
Use this checklist to compare bridging software options without getting overwhelmed.
Yes, potentially. A spreadsheet on its own cannot send information to HMRC, but it can form part of an MTD for Income Tax setup when used with suitable compatible or bridging software. The bridging software handles the digital submission.
Bridging software is a tool that connects your existing digital records — such as a spreadsheet — to HMRC's Making Tax Digital system. It takes the relevant figures and submits them in the format HMRC requires.
Not necessarily. If your records are straightforward and you are happy using a spreadsheet, bridging software may be enough. Full accounting software can be useful if you want extra features, but it is not a requirement for MTD.
A spreadsheet can hold your digital records, but MTD for Income Tax also requires the information to be sent to HMRC using compatible software. So Excel alone is not enough — it needs to be paired with a suitable submission tool.
Yes, landlords can potentially use spreadsheets as part of their MTD setup, provided the spreadsheet is used with compatible bridging software that can submit the required property income information to HMRC.
Yes, sole traders can potentially use spreadsheets, as long as they are paired with compatible software that sends the required quarterly updates and end-of-year information to HMRC.
No, it doesn't usually send the spreadsheet file itself. It sends the required income and expense figures from your records to HMRC in the correct digital format.
Prices vary. Some products may be free for certain users or circumstances, while others charge a subscription or per-submission fee. Check the provider's website or HMRC's official software finder for current pricing.
These answers are general guidance, not tax advice. For the definitive rules, always refer to the official Making Tax Digital for Income Tax guidance on GOV.UK.
MTD Together can help you understand whether your existing record-keeping approach can form part of your MTD setup, identify suitable compatible software options, and get the practical setup ready with you.
Book a free 15-minute readiness call, or arrange a £99 one-to-one Digital Setup Session for hands-on help. The £99 session covers setup and guidance; it does not include any third-party software costs.
Independent support service • Not HMRC • No obligation