If your business still relies on spreadsheets for bookkeeping, you may not need to change everything to comply with Making Tax Digital (MTD) at least not right away. With bridging software for MTD, you can still use spreadsheets while meeting HMRC’s digital submission requirements.
This guide explains what bridging software is, who needs it, and how to choose the right tool.
Bridging software is a digital tool that connects your spreadsheets to HMRC’s Making Tax Digital (MTD) system. It enables businesses that still keep records in spreadsheets to remain compliant by creating a secure digital link with HMRC.
With bridging software, you can:
In short, bridging software “bridges” the gap between your manual records and HMRC’s digital gateway.
Important: While bridging software can keep you compliant in the short term, HMRC strongly encourages businesses to move towards fully integrated cloud accounting systems. These provide better automation, fewer errors, and real-time visibility of your finances.
Bridging software can be a useful short-term solution for businesses that are not yet ready to move fully into cloud accounting. It works best in situations such as:
Note: Bridging software should generally be viewed as a temporary solution. Over time, moving to fully integrated cloud accounting software offers greater efficiency, fewer risks, and full compliance without manual workarounds.
To comply with Making Tax Digital (MTD), HMRC has strict rules on how records are kept and submitted. Bridging software must ensure that:
By meeting these requirements, bridging software allows you to stay compliant with HMRC while keeping your existing spreadsheet-based workflows in place.
Important: While bridging software helps with compliance, HMRC’s long-term expectation is that businesses move towards fully integrated cloud accounting systems for better accuracy and efficiency.
Bridging software is designed to help businesses stay compliant with HMRC’s Making Tax Digital rules while still using spreadsheets. It is most commonly used for:
Important: While bridging software can keep you compliant in the short term, HMRC’s long-term direction is clear: businesses should move to fully integrated MTD-compatible accounting software for smoother reporting, fewer errors, and future-proof compliance.
Here are some of the most widely used tools for bridging:
VitalTax (by BTCSoftware)
Absolute Excel VAT Filer
TaxCalc Bridging Software
Andica MTD VAT Bridging
All tools must be on HMRC’s official MTD software list.
Bridging software is useful for easing into MTD but it’s not a permanent solution. You should consider upgrading to full MTD software if:
See our MTD Compliant Software Guide for help choosing a long-term solution.
No bridging software is designed to help businesses comply with Making Tax Digital, not avoid it. Using bridging tools keeps you within HMRC’s digital record-keeping rules, but it does not qualify as an exemption.
If you cannot use digital tools at all for example, due to age, disability, religious grounds, or lack of internet access you must apply directly to HMRC for an official exemption or deferral.
For more details, see our MTD Exemptions and Deferrals Guide.
We support clients who:
Whether you stick with spreadsheets or move to full software, bridging software for MTD can keep you compliant with minimal disruption.
Contact us today to get set up with the right bridging tool or explore the benefits of going fully digital.
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https://a-wise.co.uk/wp-content/uploads/2025/11/Accounting-Wise-managing-VAT-as-a-Sole-Trader.webp 423 1600 Daniel Greenaway https://a-wise.co.uk/wp-content/uploads/2024/11/Accounting-Wise-Logo-Uk-Online-Accountant.webp Daniel Greenaway2025-11-10 09:38:082025-11-10 09:38:08How to Manage VAT as a Sole Trader in the UK
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https://a-wise.co.uk/wp-content/uploads/2025/10/Accounting-Wise-hiring-a-remote-bookkeeper.webp 423 1600 Daniel Greenaway https://a-wise.co.uk/wp-content/uploads/2024/11/Accounting-Wise-Logo-Uk-Online-Accountant.webp Daniel Greenaway2025-10-31 07:57:192025-10-20 14:22:43Hiring a Remote Bookkeeper: What You Need to KnowWhat is MTD bridging software?
MTD bridging software is a tool that links spreadsheets or non-compliant accounting systems to HMRC’s digital systems. It acts as a “bridge” by converting your spreadsheet data into the correct digital format and submitting it directly to HMRC through a secure API connection.
When do I need bridging software for Making Tax Digital?
You need bridging software if:
Bridging software ensures you can still meet MTD requirements without immediately changing your record-keeping system.
Is bridging software allowed by HMRC?
Yes. HMRC recognises bridging software as a valid way of complying with MTD rules. However, you must ensure the software you choose is HMRC-approved and compatible with the type of MTD submission you need (VAT or, in the future, Income Tax).
Can I use bridging software for MTD for VAT?
Yes. Many businesses use bridging software to connect VAT spreadsheets to HMRC and submit VAT returns digitally. This is one of the most common uses for bridging software under MTD.
Will I be able to use bridging software for MTD for Income Tax?
HMRC has not yet confirmed the full rules for bridging software under MTD for Income Tax (ITSA). While it may be possible, the expectation is that most landlords and sole traders will eventually need to adopt full MTD-compliant software for quarterly reporting, as spreadsheets are less practical for frequent submissions.
What are the pros and cons of using bridging software?
Pros:
Cons:
Is bridging software a long-term solution?
For some businesses, yes – particularly those with simple records or who prefer spreadsheets. However, as HMRC expands MTD, full cloud accounting software is likely to become the more practical, future-proof choice. Bridging software works best as a transitional option.
How can Accounting Wise help with bridging software?
At Accounting Wise, we can:
This ensures you stay compliant with MTD in the way that best suits your business.
1 Choose Your Package
Select the accounting services that best suit your needs. Choose from our ready-made packages or build your own to see exactly how much you’ll be paying each month.
2 Sign up with Us
Once you’ve chosen your service level, just send over a few details using our quick sign-up form or give us a call to get started.
3 You’re ready to go
That’s it! We’ll get your accounting services set up, contact your previous accountant if needed, and begin the authorisation process with HMRC.
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