One of the most common questions from sole traders and landlords entering MTD is: “Can I keep my spreadsheet?” The answer is yes — if you use bridging software. Here is how it works.
What is bridging software?
Bridging software sits between your spreadsheet and HMRC’s MTD API. It takes the data from your spreadsheet, formats it correctly, and submits it to HMRC on your behalf. Without bridging, a spreadsheet alone cannot submit to HMRC — you need recognised software that talks to the MTD API.
How does bridging work?
- You continue recording income and expenses in your spreadsheet (Excel, Google Sheets, etc.).
- The bridging software reads your spreadsheet data (usually via CSV upload or API).
- It maps your spreadsheet columns to the correct MTD fields.
- It submits quarterly updates and the final declaration to HMRC via the MTD API.
The cost of bridging vs full software
| Approach | Typical cost | Complexity |
|---|---|---|
| Full MTD software (e.g. Xero Simple) | £7/month | Low — everything in one place |
| Spreadsheet + bridging software | £10-30/month (bridging) | Medium — two systems to maintain |
| FreeAgent (with NatWest/RBS) | Free | Low — best value if eligible |
For most sole traders and landlords, switching to full MTD software is cheaper and simpler than maintaining spreadsheets plus bridging. The only reason to use bridging is if you have complex existing spreadsheet workflows you cannot easily replicate.
Popular bridging options
- EasyBooks — MTD bridging software that connects spreadsheets to HMRC. Suitable for sole traders and landlords.
- Gbooks MTD — another bridging option for spreadsheet users.
- Built-in bridging — some MTD platforms (Xero, Sage) offer limited spreadsheet import features.
Our recommendation
Unless you have a compelling reason to keep your spreadsheet, switch to full MTD software. It is cheaper, simpler, and less error-prone. Xero Simple at £7/month is the cheapest full option. FreeAgent is free with NatWest/RBS. Both handle quarterly submissions without any bridging complexity.
FAQ
Can I use Google Sheets for MTD?
Not directly. Google Sheets cannot submit to HMRC’s MTD API. You need bridging software to connect Google Sheets to HMRC, or switch to full MTD software.
What if I only have a paper ledger?
Paper records are not acceptable for MTD. You must digitise your records — either by entering them into MTD software directly, or by scanning/importing into a spreadsheet with bridging.
Can my accountant handle bridging for me?
Yes. Many accountants offer bridging services or can recommend bridging software. If you already work with an accountant, ask them what they recommend.