Can I Use Excel For Making Tax Digital?
Yes. You can continue using Excel for Making Tax Digital record keeping.
However, Excel on its own cannot submit quarterly updates or tax information directly to HMRC.
Most spreadsheet users continue keeping their records in Excel and use compatible software to submit the required information to HMRC.
The 30-second answer
Yes, you can use Excel for Making Tax Digital.
HMRC allows spreadsheet-based record keeping.
However, Excel cannot submit MTD information directly to HMRC on its own.
Spreadsheet users typically keep their records in Excel and use compatible software to submit the required updates to HMRC.
What HMRC says about Excel and spreadsheets
HMRC states that businesses and landlords within Making Tax Digital must keep digital records and use software that works with Making Tax Digital.
What that means in practice
HMRC does not require you to abandon Excel.
You can continue using spreadsheets to record income and expenses, provided the information can be submitted to HMRC using compatible software.
Why Excel alone isn't enough
Excel is excellent for recording income, expenses and other financial information.
What Excel cannot do by itself is:
- Connect to HMRC
- Retrieve filing periods
- Retrieve obligations
- Submit quarterly updates
- Submit final declarations
For those actions you need software that can communicate with HMRC's Making Tax Digital systems.
How spreadsheet users typically comply with MTD
Step 1
Keep records in Excel.
Step 2
Review and update records throughout the year.
Step 3
Connect compatible software to HMRC.
Step 4
Submit quarterly updates and end-of-year information.
Do I still need software if I use Excel?
Usually, yes.
While Excel can be used for record keeping, submissions must be sent using software that works with Making Tax Digital.
This is why many spreadsheet users choose software designed specifically to work alongside Excel rather than moving to a full bookkeeping platform.
Can I keep my existing spreadsheet?
In many cases, yes.
Many sole traders and landlords already have spreadsheets they understand and trust.
Rather than rebuilding years of records inside a bookkeeping platform, many people prefer to continue using their existing spreadsheet and simply use software to handle submissions.
Excel vs accounting software for MTD
Excel
- Flexible
- Familiar
- Low cost
- Works for many spreadsheet users
Accounting Software
- Additional bookkeeping features
- Bank feeds
- Invoicing tools
- Usually requires monthly subscriptions
Frequently Asked Questions
Excel can be used for digital record keeping, but submissions must be made using software that works with Making Tax Digital.
Excel alone cannot submit information directly to HMRC. Spreadsheet users typically use compatible software to send updates.
Yes. Many landlords use spreadsheets to record rental income and expenses.
Yes. Many sole traders continue to use spreadsheets as part of their digital record keeping process.
Important
This guide is provided for general information only and is based on HMRC guidance available at the time of writing.
suiteSheets is software designed to help spreadsheet users meet Making Tax Digital requirements. We do not provide tax advice, accounting advice or legal advice.
If you are unsure how Making Tax Digital applies to your circumstances, contact HMRC or a qualified professional adviser.
Designed for spreadsheet users
suiteSheets is built for people who want to keep using Excel or Google Sheets rather than moving to a full bookkeeping platform.
- Keep your spreadsheet
- No monthly subscription
- Free templates available
- Simple MTD submissions