What is bridging software and do you need it
Bridging software is the digital link between a spreadsheet and HMRC's systems, letting you keep recording income and expenses in a spreadsheet while still meeting the Making Tax Digital for Income Tax digital records requirement. You don't need to abandon spreadsheets. You need a bridge.
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What it actually does
Bridging software takes the totals from your spreadsheet and submits them to HMRC in the format MTD requires, without you re-entering anything by hand. Your spreadsheet stays exactly as it is; the bridge handles the connection.
Examples
123 Sheets (£39.50/yr +VAT) , AbraTax (£5/mo +VAT) and GoFile (£49.99/yr +VAT) are current examples. Conditions and exact coverage vary by product. Our comparison of the main options lines them up on price, or the Software Chooser ranks them against your answers.
Keeping the digital link intact
Because a spreadsheet and a separate bridging tool are two products, HMRC expects a digital link between them. The figures must move across as a digital link, through a formula-linked cell or a file import, not by you retyping them and not by copy and paste. Once a figure has gone to HMRC in a quarterly update, you correct it in the spreadsheet and let the link carry it over again. Our guide to digital links: what HMRC actually requires lists every acceptable method.
Common questions
Do I only need bridging software if I use spreadsheets?
Yes. If you already use a full accounting app that connects to HMRC directly, you don't need a separate bridging product.
Is bridging software expensive?
Not usually. 123 Sheets, for example, is £39.50/yr +VAT, well below most full accounting apps.
Does bridging software replace my spreadsheet?
No. It sits alongside it, taking the totals you already record and submitting them to HMRC in the format MTD requires.
Does bridging software file the Final Declaration too, not just quarterly updates?
That depends on the product. Check each option's own coverage on the Software Chooser before relying on it for your Final Declaration.