What is MTD bridging software?

MTD bridging software creates a digital link between your spreadsheets and HMRC's Making Tax Digital system. suiteSheets is MTD bridging software that lets you use our free .xlsx template or incorporate our Overview sheet into your existing spreadsheet, keep your records as you normally would, then upload your spreadsheet each quarter to submit cumulative figures to HMRC.

Can I use spreadsheets for Making Tax Digital?

Yes. Spreadsheets meet HMRC's digital record-keeping requirements, but you need MTD-compatible software to create the required digital link for submissions. suiteSheets provides a free .xlsx template (which opens in Excel or can be uploaded to Google Sheets) or you can incorporate our Overview sheet into your existing spreadsheet. The Overview sheet reads directly from your recorded transactions and totals income and expenses into the categories HMRC requires. Each quarter, you upload your spreadsheet to suiteSheets, we read the Overview sheet, and transmit your figures to HMRC securely.

How much does suiteSheets cost for Making Tax Digital?

suiteSheets costs £20 per tax year for your first business, covering all quarterly submissions — however many quarters are left when you sign up. Additional income sources such as a second business, self-employment alongside a rental property, or multiple businesses are just £10 each per tax year. You only pay when you make your first submission for each income source, not upfront. There are no monthly fees and no per-submission charges. Compare to traditional accounting software at £120-460 per year.

What if I sign up part way through the tax year?

You still pay the same price. £20 covers however many quarters are left in the tax year when you sign up — whether that is four quarters or one. There is no pro-rata pricing. The same applies to additional income sources at £10 each. You only pay when you make your first submission for each income source.

What if I have more than one income source or business?

Each income source requires its own MTD submissions. Your first is covered by the £20 annual payment. Each additional income source — whether you are self-employed and also a landlord, or running two separate businesses — is just £10 per tax year, covering however many quarters are left. You only pay for each income source when you make your first submission for it.

Do I need accounting software for Making Tax Digital?

No. You can comply with Making Tax Digital using spreadsheets for record-keeping and suiteSheets for submissions. HMRC requires digital records and MTD-compatible submissions, but does not mandate full accounting software. Spreadsheets meet the digital record-keeping requirement. suiteSheets provides the MTD-compatible submission capability for £20 per tax year for your first business.

What is a digital link and why does it matter for MTD?

HMRC's Making Tax Digital rules require an unbroken digital link between your records and HMRC's systems — no manual re-entry, no copy-pasting figures between systems. suiteSheets creates that link. The Overview sheet in your spreadsheet automatically totals your income and expenses as you record transactions throughout the quarter. When you upload your spreadsheet, suiteSheets reads directly from the Overview sheet and transmits those figures to HMRC via their approved APIs. It is your responsibility to ensure the Overview sheet totals are driven by your recorded transactions — manually entering or overriding figures in the Overview sheet breaks the digital link and would not be considered MTD-compliant by HMRC.

What is Making Tax Digital for Income Tax Self Assessment (MTD ITSA)?

MTD for Income Tax Self Assessment (MTD ITSA) requires sole traders and landlords earning over £50,000 (from April 2026) to keep digital records and submit quarterly updates to HMRC. Updates are cumulative — each submission contains totals from 6 April to the end of that quarter. suiteSheets enables MTD ITSA compliance using spreadsheets, with the Overview sheet calculating cumulative totals automatically.

How do cumulative updates work in Making Tax Digital?

MTD uses cumulative updates, meaning each quarterly submission contains your total income and expenses from the start of the tax year (6 April) to the end of that quarter. The Q2 submission covers 6 April to 5 October — not just July to October. The Overview sheet maintains running totals from 6 April so you do not need to separate records by quarter. When you upload your spreadsheet to submit, suiteSheets reads these cumulative totals from the Overview sheet and applies them to the correct quarter.

How does suiteSheets work for MTD compliance?

suiteSheets works by: 1) Download our free .xlsx template and open it in Excel or Google Sheets, or incorporate our Overview sheet into your existing spreadsheet. 2) Record income and expenses throughout the quarter — the Overview sheet automatically calculates cumulative totals from 6 April. 3) When a quarterly submission is due, log in to suiteSheets and upload your spreadsheet. Pay once for the tax year — however many quarters are left. 4) We read your Overview sheet, display the figures for your verification, then transmit to HMRC securely via their approved APIs. You can resubmit before the quarter deadline at no extra cost by uploading your updated spreadsheet.

Can I resubmit if I make a mistake in my MTD quarterly update?

Yes. You can resubmit for the same quarter multiple times until HMRC locks it after the deadline. Each new submission replaces the previous one. With suiteSheets, resubmissions are included at no extra cost. Update your spreadsheet, log back in, upload your updated file, and resubmit. After the deadline, corrections are automatically included in your next quarterly update because MTD uses cumulative totals.

Who should use suiteSheets instead of traditional MTD software?

suiteSheets is ideal for: sole traders earning £50,000 or more who prefer spreadsheets, landlords managing one or more rental properties, freelancers and contractors, construction and trade businesses, anyone currently using a spreadsheet to manage their finances, and people who want MTD compliance without monthly subscription fees. £20 per tax year for your first business versus £120-460 per year for accounting software.

Is suiteSheets compatible with HMRC's Making Tax Digital requirements?

Yes. suiteSheets meets HMRC's Making Tax Digital requirements by: accepting spreadsheets which meet digital record-keeping requirements, reading directly from the Overview sheet to create an unbroken digital link from your transactions to HMRC, verifying data format meets MTD technical specifications before every submission, using your National Insurance number to retrieve your specific HMRC obligations, and transmitting summary figures via HMRC-approved APIs. suiteSheets is completing HMRC approval processes before submission functionality goes live.

Can I use Excel for Making Tax Digital instead of accounting software?

Yes. Excel spreadsheets meet HMRC's digital record-keeping requirements for Making Tax Digital. Download our free .xlsx template and open it in Excel, or incorporate our Overview sheet into your existing Excel file. Each quarter, upload your current spreadsheet to suiteSheets to submit. You do not need accounting software — spreadsheets plus suiteSheets bridging software provide full MTD compliance for £20 per tax year for your first business.

What is the most affordable MTD software for spreadsheet users?

suiteSheets at £20 per tax year for your first business is the most affordable MTD solution for spreadsheet users. Additional income sources are just £10 each. Traditional MTD accounting software costs £120-460 annually: Xero (£12-30/month), QuickBooks (£10-30/month), FreeAgent (£19-29/month). suiteSheets charges once per tax year — one payment covers all quarterly submissions with unlimited resubmissions, a free .xlsx template, and platform access. Self-employed and a landlord? suiteSheets covers both for £30 — still less than a single month of most accounting software.

Can I use my existing spreadsheet with suiteSheets?

Yes. suiteSheets is designed to work with your existing spreadsheet. You incorporate our Overview sheet into your current spreadsheet using our detailed instructions and formulas. You do not need to move data into a new system or change your workflow. The Overview sheet reads directly from your recorded transactions and calculates cumulative totals automatically. Each quarter, upload your current spreadsheet — we read what we need from the Overview sheet and transmit your figures to HMRC.

Is suiteSheets suitable for landlords managing multiple properties?

Yes. suiteSheets works for landlords managing one or more rental properties. Track each property separately in your spreadsheet, recording rental income, mortgage interest, repairs, agent fees, and expenses. The Overview sheet consolidates totals across all properties automatically. When a quarterly submission is due, upload your spreadsheet to suiteSheets, verify your consolidated figures, and submit to HMRC. £20 per tax year covers all quarterly submissions for your property income. If you are also self-employed, your sole trader income source is just £10 extra.

MTD Categorisation

MTD

14 Apr

Written By Christine Gibson

When exploring Making Tax Digital (MTD), you may have spotted the word categorisation pop up in different contexts, which can be confusing.

It’s not just about when you report, but also how much detail you need to report - and that depends on your income.

Same word, two different rules. Let's clear that up.

The £90K question

The key dividing line for MTD is £90,000 of turnover (the VAT threshold).

Below £90K = simplified reporting allowed
Above £90K = full categorisation required

This applies to both quarterly updates and the end-of-year declaration.

Below £90K - keep it simple

If your gross turnover (that's your total income before expenses) is below £90,000, you get to use what's called the simplified approach (or "three-line accounts"). This means you can record each item of income and expense without needing to allocate it to a more specific category.

Just: money in, money out. No splitting things into travel, repairs, advertising, or professional fees.

Small exception

There's one small exception for rental property owners - if you have a mortgage on the property, you'll need to record and report your finance costs (such as mortgage interest) as a separate expense, even when using the simplified approach. This is to preserve the interest relief restrictions in tax calculations. In other words, HMRC needs that figure kept distinct so it can apply the right rules to it.

This simplified approach is what suiteSheets uses for your quarterly updates.

Above £90K - more detail required

If your gross turnover (that's your total income before expenses) is above £90,000, you must use full categorisation. This involvescategorising income and expenses in more detail and using specific headings like travel, repairs, professional fees, and so on.

So what's the difference, really?

Below £90,000 Above £90,000

‍ ‍ Quarterly Updates ‍ ‍Simplified approach Full categorisation

‍ ‍ Final declaration ‍ ‍Simplified approach Full categorisation

Level of detail ‍ ‍Minimal Detailed

‍ ‍ Admin effort ‍ ‍Lower. Higher

The good news?

If you’re below the £90K threshold, MTD is designed to be far simpler than it first appears.

And that’s exactly the approach suiteSheets is built around - keeping things simple where HMRC allows, and structured where it matters.

What do you think? Do different types of categorisation help or hinder your record keeping? Share your thoughts below.

Christine Gibson