Last checked 19 October 2026
Quick answer
Yes. GOV.UK says that if you use spreadsheets for your records, you can keep using them for Making Tax Digital (MTD) for Income Tax. But a spreadsheet can’t send anything to HMRC on its own, so you’ll also need software that links to it, sometimes called bridging software, to send your quarterly updates and submit your tax return.
This is general information, not tax advice. Check GOV.UK or speak to an accountant about your situation. Why we say this.
Plenty of sole traders have a spreadsheet that works for them: a tab for income, a tab for expenses, a few formulas. MTD doesn’t make you throw that away. It does add some rules about how the spreadsheet connects to the software that talks to HMRC.
What GOV.UK says about spreadsheets
GOV.UK’s guide for first-time MTD users says: “if you use spreadsheets for your records, you can continue to use them. But you’ll still need software that links to your spreadsheets (sometimes called bridging software). This is how you’ll send quarterly updates and submit your tax return.”
HMRC doesn’t provide the software itself. GOV.UK’s Choose the right software page describes two types:
- Software that creates digital records. You link a business bank account, scan receipts and invoices, or type in your income and expenses. These products usually let you send quarterly updates and submit your tax return.
- Software that connects to your records. This connects to records you already keep in spreadsheets or other accounting tools and makes your submissions to HMRC. GOV.UK says this is sometimes called bridging software.
How bridging software works
Think of it as two jobs done by two tools:
- Your spreadsheet keeps the records. Each income or expense entry is a digital record.
- The bridging software reads the totals and submits them. It connects to your spreadsheet, works out your quarterly update and sends it to HMRC. Later, it can be used for your tax return, if the product supports that.
Quarterly updates are summaries of your income and expenses, not tax returns. GOV.UK says HMRC won’t receive details of individual receipts or invoices in them.
The digital link rules
This is the part spreadsheet users most need to get right. GOV.UK’s Create digital records guidance says that if you use more than one product, you need to digitally link your record-keeping software and the software that makes submissions to HMRC.
GOV.UK lists ways to digitally link records, including:
- linked cells in spreadsheets, for example a formula in one sheet that mirrors a value in another
- emailing a spreadsheet so the information can be imported into another product
- moving records on a memory stick or similar device for someone to import
- XML or CSV import and export, and downloading and uploading files
- automated data transfer
- an API transfer
And it gives clear examples of what you must not do once a digital record has been sent to HMRC in a quarterly update:
- copy information by writing it out again in another cell or in other software
- use “cut and paste” or “copy and paste” to move records
If you find a mistake, GOV.UK says to correct it in the spreadsheet and then digitally link your records to your bridging software again, rather than retyping figures somewhere else.
What each record needs
A digital record, in GOV.UK’s words, needs the:
- amount
- date the income was received or the expense was incurred
- category, using the same categories as Self Assessment
GOV.UK also explains when you may be able to use simpler categories. If your turnover from a self-employment source is under £90,000, GOV.UK says that as a sole trader you only need to record whether each transaction is income or an expense. If your turnover reaches £90,000, you’ll need to categorise those records in full. The full rules, including how this works when you have more than one income source, are on the Create digital records page.
If you’re a retailer, GOV.UK says you can choose to record your daily gross takings instead of each individual sale.
You still keep your original records or copies, such as bank statements and invoices. GOV.UK says digital records must be kept for at least 5 years after the 31 January submission deadline for a tax year.
What you don’t need to link
According to GOV.UK, you don’t need to digitally link:
- records of income that isn’t self-employment or property income, such as dividends or savings
- software that isn’t used to create digital records of your self-employment or property income and expenses, such as booking software or a till system that records sales receipts
- software used only to submit your tax return, when it gets its data directly from HMRC
Can I use more than one product?
Yes. GOV.UK says you can use more than one software product, but only one product for each separate submission to HMRC. For example, one product could create records and send quarterly updates, and another could submit your tax return. If you do this, GOV.UK says you need to make sure the products work together.
GOV.UK notes that “there are some bridging software products available” that let you send quarterly updates and submit your tax return. Not every product does both, so check before you choose.
What to check before you choose
GOV.UK’s Choose the right software page says the software you choose will need to:
- support all your income sources for MTD
- send quarterly updates and submit your tax return
- let you report all your other income sources to complete your tax return
- work with your accounting period (standard tax year, calendar update periods or neither)
For spreadsheet users, it’s also worth asking each provider which spreadsheet formats it connects to and how it handles corrections. GOV.UK says free products exist for people with simple tax affairs, but may have limits, for example on the number of transactions.
HMRC’s software finder asks whether you want to create new digital records or connect to existing ones. It also has an option to check whether your current software is compatible, which the finder says includes using spreadsheets. GOV.UK says all software listed has been through HMRC’s recognition process, and HMRC does not recommend any product or software provider.
Frequently asked questions
Can I keep using Excel or another spreadsheet for MTD?
GOV.UK says you can continue to use spreadsheets for your records, but you’ll need software that links to them (sometimes called bridging software) to send quarterly updates and submit your tax return.
What is bridging software?
GOV.UK describes it as software that connects to your existing records, such as spreadsheets, and makes your submissions to HMRC.
Can I copy and paste figures into my bridging software?
GOV.UK says that once a digital record has been sent to HMRC in a quarterly update, you must not move it by retyping it or by copying and pasting. Records need to be digitally linked.
Does my booking app or till system need to be linked?
GOV.UK says you don’t need to digitally link software that isn’t used to create digital records of your self-employment or property income and expenses, such as booking software or a till system that records sales receipts.
Is there free bridging software?
GOV.UK says free products are available for those with simple tax affairs, but they may have limits, for example on the number of transactions. Check what each provider’s free version includes, and check the product is on HMRC’s software finder.
Does HMRC recommend a bridging product?
No. GOV.UK says all software on its finder has been through HMRC’s recognition process, and HMRC does not recommend any product or software provider.
Sources
All checked on GOV.UK on 19 October 2026.
- Using Making Tax Digital for Income Tax for the first time (updated 16 October 2026)
- Choose the right software for Making Tax Digital for Income Tax (updated 13 July 2026)
- Create digital records (updated 16 July 2026)
- Send quarterly updates (updated 16 October 2026)
- Find software that works with Making Tax Digital for Income Tax
Where to check
What changed. : . 19 October 2026: First published.
