What is MTD Bridging Software?
30-second answer
Bridging software helps connect existing digital records to another digital system.
For Making Tax Digital, bridging software usually means software that connects records held in spreadsheets or other digital tools to HMRC's MTD system for submission.
It is often used by people who already keep financial records in Excel or Google Sheets and don't want to move everything into a full accounting package.
The key thing to remember is that bridging software is one route into MTD. Some people use an accountant, some use full accounting software, and some use bridging software that works alongside their existing records.
This guide is most relevant if you are:
- A sole trader or landlord
- Currently use Excel or Google Sheets
- Trying to understand MTD software options
- Looking for an alternative to full bookkeeping software
- Wondering whether bridging software is for you
This guide covers
This guide is provided for general information only and is based on HMRC guidance available at the time of writing.
HMRC says people using Making Tax Digital for Income Tax need software that works with MTD.
Software can either create digital records itself or connect to existing records, such as records held in spreadsheets. HMRC describes this second option as bridging software.
People can use one software product that does everything, or more than one software product that works together to meet the MTD requirements.
In short
HMRC recognises that some people will keep records in spreadsheets or other tools and use bridging software to connect those records for MTD submissions.
Bridging software is software that connects one set of digital records to another software system.
The term is not only used for tax. In general, bridging software means software that acts as a bridge between two systems that do not otherwise connect directly.
In Making Tax Digital, bridging software usually connects existing records, such as spreadsheets, to HMRC's MTD system.
In short
Bridging software helps move information from your records into HMRC's MTD system without manually typing the same figures again.
Many people already keep perfectly usable digital records before they ever thought about MTD.
Some use Excel. Some use Google Sheets. Some use other tools, simple systems or records managed by an accountant.
Bridging software exists because not everyone wants, or needs, to move all of those records into a full accounting platform.
Instead, bridging software links existing digital records to HMRC's MTD submission process.
In short
Bridging software gives people a way to keep using existing digital records while still meeting the MTD digital process requirements.
The exact process depends on the software, but the basic idea is simple.
- Keep digital records - You keep records of income and expenses digitally. This might be in Excel, Google Sheets, accounting software or another digital system.
- Prepare the figures - The figures need to be organised into the categories needed for MTD submissions.
- Connect the records to the software - Bridging software reads or receives the relevant figures from your records.
- Review and submit - The software shows the figures for review, then sends the required information to HMRC once confirmed.
In short
Bridging software connects existing digital records to the MTD submission process.
This is one of the most common sources of confusion.
Full accounting software
Full accounting software is usually built around a complete bookkeeping workflow.
- Bank feeds
- Invoicing
- Expense categorisation
- Reports
- MTD submissions
Bridging software
Bridging software usually works alongside records you already keep elsewhere.
- Connects existing records
- Works with spreadsheets or other digital records
- Prepares figures for submission
- Connects to HMRC
In short
Accounting software is often an automated record keeping system. Bridging software links the records you already keep to HMRC.
Not everyone needs bridging software.
Some people use an accountant. Some use full accounting software. Some use another MTD-compatible product that handles everything they need.
Bridging software is most relevant if you already keep digital records and want to connect those records to HMRC without moving everything into a full accounting platform.
In short
Bridging software can be a good option if your records are already digital and you want a simple way to connect them to MTD submissions.
This is one of the most common reasons people look for bridging software.
HMRC guidance says people can continue to use spreadsheets for their records, but they still need software that links to those spreadsheets to send quarterly updates and submit their tax return.
That software is called bridging software.
In short
You can use Excel or Google Sheets as part of an MTD process, but your spreadsheet must connect to bridging software that can send the required information to HMRC.
suiteSheets is MTD-compatible bridging software designed for sole traders and landlords who prefer a spreadsheet-based approach to Making Tax Digital.
Instead of moving everything into a bookkeeping platform, you can work with a full suiteSheets template or simply add the Overview sheet to your existing spreadsheet.
When a submission is due, you upload your spreadsheet to your suiteSheets account. The system reads the totals directly from your Overview sheet, shows them clearly on screen, and asks you to confirm that everything looks correct.
Once you're happy, you can submit the figures to HMRC.
Full suiteSheets template
Ideal if you want a clean, fresh start to your record keeping.
- Income and expense sheets
- Overview sheet built in
- Quarterly profit/loss totals ready to review and submit
- Works in Excel and Google Sheets
- HMRC recognised categories
Overview sheet only
Ideal if you already have a spreadsheet set up and want to keep it.
- Add the Overview sheet to your current spreadsheet
- Link your existing totals
- Works in Excel and Google Sheets
- HMRC recognised categories
Bridging software connects existing digital records to another software system. For MTD, it usually connects records such as spreadsheets to HMRC's MTD system.
No. Accounting software often keeps and submits your records to HMRC in one place. Bridging software connects your existing digital records to HMRC.
Yes. Many people use Excel for digital records and bridging software to submit the required information to HMRC.
Yes. Many people use Google Sheets for digital records and bridging software to submit the required information to HMRC.
HMRC recognises bridging software as an MTD solution that allows spreadsheet users to submit information directly from their digital records.
HMRC also provides a tool to find software that works with Making Tax Digital for Income Tax.
Not necessarily. You may use an accountant, full accounting software or another MTD-compatible option.
Bridging software is most relevant if you want to keep existing digital records and connect them to HMRC.
This guide is provided for general information only and is based on HMRC guidance available at the time of writing.
suiteSheets is software for spreadsheet users. 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 adviser.
These HMRC pages provide further context on Making Tax Digital for Income Tax, eligibility, digital records, compatible software and signing up.
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suiteSheets is MTD-compatible software designed for sole traders and landlords who prefer a spreadsheet-based approach to Making Tax Digital.
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