MTD Bridging Software: What It Is and How It Works

If you use a spreadsheet to manage your business finances, Making Tax Digital (MTD) might seem like a threat to your workflow. HMRC requires you to submit quarterly updates digitally, but you can't just email them your Excel file.

This is where MTD bridging software comes in.

What is Bridging Software?

Bridging software is exactly what it sounds like: a bridge. It connects your digital records (like an Excel or Google Sheets spreadsheet) directly to HMRC's systems.

Instead of buying a full accounting package, you keep using your spreadsheet. When it's time to submit your quarterly update, the bridging software reads the totals from your spreadsheet and securely sends them to HMRC.

What MTD Requires

To comply with MTD, HMRC states that you must have a "digital link" from your source records to their system.

How Bridging Software Works

Using bridging software is incredibly simple:

1. Keep your records: Continue logging your income and expenses in your spreadsheet.
2. Upload your file: At the end of the quarter, upload your spreadsheet into the bridging software.
3. Submit to HMRC: The software automatically extracts the necessary totals. You review them, click submit, and you're done.

Why Choose Bridging Software?

Bridging software is the perfect fit if you:

• Are comfortable using spreadsheets.
• Don't want to learn complex new accounting software.
• Want to keep your costs low.
• Don't need advanced features like bank feeds or payroll.

At Abridge, we support Excel, Google Sheets, and simple file uploads with a modern, easy-to-use interface. You keep your spreadsheet; we handle the HMRC connection.