MTD bridging software reads the figures in the spreadsheet you already keep and sends them to HMRC as quarterly updates, so you do not have to move to accounting software. The one rule: records must be linked digitally, never copied or retyped.
HMRC describes bridging software as software that connects to records you already keep, for example spreadsheets, and submits them to HMRC.
Source: Find software that's compatible with Making Tax Digital for Income Tax — gov.uk (opens in a new tab)A spreadsheet can be part of your digital records. HMRC lists linked cells in spreadsheets as one accepted digital link.
Source: Keep digital records — Use Making Tax Digital for Income Tax — gov.uk (opens in a new tab)Your record-keeping software and the software that submits to HMRC must be linked digitally. Copy and paste, cut and paste, or writing figures out again in another cell all break the link.
Source: Keep digital records — Use Making Tax Digital for Income Tax — gov.uk (opens in a new tab)A quarterly update is a summary of income and expense totals by category for each self-employment and property business. You do not send individual invoices or receipts.
Source: Send quarterly updates — Use Making Tax Digital for Income Tax — gov.uk (opens in a new tab)Keep digital records of self-employment and property income and expenses, plus supporting documents such as bank statements and invoices, for at least five years after the 31 January submission deadline.
Source: Keep digital records — Use Making Tax Digital for Income Tax — gov.uk (opens in a new tab)MTD for Income Tax needs two things from you: digital records of your income and expenses, and quarterly updates sent to HMRC through compatible software. A spreadsheet can hold the records, but it cannot talk to HMRC. Bridging software is the missing piece: it takes the totals from your spreadsheet and makes the submission.
In practice you keep your spreadsheet up to date as you do today, upload or link it to the bridging tool at each quarter, check the category totals it shows you, and approve the update. The tool sends it to HMRC and, at the end of the year, helps with the final declaration.
HMRC accepts several kinds of digital link: linked spreadsheet cells, emailed spreadsheets, transfer on a portable drive, XML or CSV files, automated transfers and APIs. What it rules out is moving a record by hand.
The most common way to break the link is a summary sheet that you fill in by copying figures from your transaction sheet. Build that summary with formulas that point at the source cells instead, so changing the source changes the summary.
A spreadsheet plus bridging software suits a sole trader or landlord with one or two income sources, simple records and the discipline to update them every month. It is usually the cheapest route.
It gets harder when you have several businesses or properties, joint ownership to split, bank transactions to match against receipts, or more than one person editing the file. Then the work is the bookkeeping, not the submission, and software that records transactions from your bank for you removes the part that keeps going wrong.
ac-co Income Tax (MTD) does not take a spreadsheet upload for quarterly updates. It works the other way round: it records income and expenses from your connected bank and books, keeps the cumulative position straight and drafts each update for you to review. If you want to keep your spreadsheet as your system of record, a bridging product is the right choice and our free MTD software comparison shows what a few of them say about pricing.
If you would rather stop maintaining the spreadsheet, ac-co is built for that. It is in open beta and live filing to HMRC is not open yet; join the waitlist and we will tell you when it is.
HMRC does not recommend any product. Its software finder lists software that has been through HMRC's recognition process, and lets you filter by what you need. Start there, then ask each provider:
Bridging software connects the records you already keep, such as a spreadsheet, to HMRC so you can send MTD for Income Tax quarterly updates without moving to full accounting software. It reads your category totals and submits them for you to approve.
Yes, as your record. HMRC accepts a spreadsheet as part of your digital records if the cells are linked. You still need compatible software to send the updates, which is where bridging software comes in.
No, not for moving records between software. HMRC's guidance rules out copy and paste, cut and paste, and writing figures out again in another cell. Use linked cells, a file import or an API instead.
Usually not. Bridging software exists for people who keep records in spreadsheets. If your accounting software is compatible with MTD for Income Tax it submits the updates itself.
No. ac-co Income Tax (MTD) records income and expenses from your bank and books rather than reading a spreadsheet. It is in open beta and live filing to HMRC is not open yet.
It varies by provider and changes often, so check each provider's own page. Our free MTD software comparison shows what a few providers say, with the date each page was read.
Read on 12 October 2026. HMRC changes its guidance; check the page itself for anything that may have moved since.
ac-co Income Tax (MTD) records from your bank and books instead. It is in open beta; join the waitlist and we will tell you when live filing opens.