Updated on 17 September 2026
123 Sheets review (2026): the spreadsheet-based MTD tool used by a third of UK sole traders
Prices and features last verified on 20 September 2026. Sources: 123 Sheets website, HMRC MTD software list.
123 Sheets is a bridging tool that lets you keep using Excel while becoming MTD-compliant. It costs from £18/year and has a 4.4/5 rating.
Quick facts
| Pricing | From £18/year (Self Employed) |
| Best for | Spreadsheet users who want to keep using Excel |
| Rating | 4.4/5 |
| MTD recognised | Yes — HMRC-recognised for MTD ITSA |
| Free tier | No |
| Bank feeds | Yes (limited) |
| Invoicing | No (bridging tool) |
| Mobile app | No |
Overview
123 Sheets is a bridging tool that lets you keep using your existing Excel spreadsheets while becoming MTD-compliant. It works by linking your spreadsheet to HMRC’s systems, so you can submit quarterly updates directly from your familiar Excel interface. It’s the single most-used MTD tool in the UK, handling 33% of all HMRC Q3 2024/25 quarterly submissions.
Pros
- HMRC-recognised for MTD ITSA from day one
- Keep using your existing Excel spreadsheets
- Very affordable — from just £18/year
- Used by 33% of all HMRC Q3 2024/25 quarterly submissions
- Simple, familiar spreadsheet interface
Cons
- Requires some spreadsheet knowledge
- No built-in invoicing or receipt scanning
- Limited automation compared to full accounting software
- No mobile app
Who should use 123 Sheets?
123 Sheets is best for spreadsheet users who want to keep using Excel while becoming MTD-compliant. If you’re comfortable with spreadsheets and want the cheapest route to MTD compliance, it’s a solid choice. If you need invoicing, receipt scanning, or a mobile app, consider a full accounting package instead.
FAQ
Is 123 Sheets HMRC-recognised for MTD?
Yes. 123 Sheets is fully HMRC-recognised for MTD Income Tax Self Assessment (MTD ITSA). You can submit quarterly updates and your End of Period Statement directly through the platform.
Does 123 Sheets work with Excel?
Yes. 123 Sheets is designed to work with your existing Excel spreadsheets. You don’t need to change how you work — just link your spreadsheet to HMRC via 123 Sheets.
Is 123 Sheets suitable for limited companies?
Yes. 123 Sheets offers plans for both sole traders and limited companies. Check their website for the latest pricing and features.
Can I try 123 Sheets before buying?
No — 123 Sheets does not offer a free trial, but it is very affordable at from £18/year.