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Do I Need Accounting Software for MTD? (Keep Your Spreadsheet)

4 min2026-05-20

Quick Answer

No, you do not need accounting software for Making Tax Digital. HMRC rules allow you to keep using your existing spreadsheet, as long as you use "bridging software" to submit your totals.

If you've been reading up on Making Tax Digital (MTD), you might be panicking. Everywhere you look, big software companies are telling you that you must buy their complex, expensive accounting suites to comply with the new rules.

But here is the truth: you don't.

If you are happy with your current spreadsheet, you can keep it. Let's look at what HMRC actually requires, and how you can avoid paying for features you don't need.

What MTD Actually Requires

The rules for Making Tax Digital are surprisingly simple. HMRC requires you to do three things:

  1. Keep digital records of your income and expenses (a spreadsheet counts).
  2. Send quarterly summary updates to HMRC.
  3. Submit a final declaration at the end of the tax year.

HMRC's official guidance states: "There is no requirement for accounting software or real-time data feeds." A simple spreadsheet is a perfectly legal form of digital record-keeping.

What MTD Does NOT Require

You do not need to abandon your current workflow. MTD does not force you to:

  • Connect your bank accounts for live feeds.
  • Use complex cloud accounting suites.
  • Track your finances in real-time.
  • Pay high monthly fees for features you will never use.

The Spreadsheet Loophole: Bridging Software

So, if you can use a spreadsheet, how do you send the data to HMRC? You can't just email them an Excel file.

This is where bridging software comes in. Bridging software is a simple, low-cost tool that takes the totals from your spreadsheet and securely sends them to HMRC. It acts as a digital bridge between your records and the tax office.

How it works:

  1. You update your spreadsheet exactly as you always have.
  2. At the end of the quarter, you upload your spreadsheet to the bridging software.
  3. The software reads your totals and submits them to HMRC with one click.

Are We a Good Fit for You?

If you want to keep your spreadsheet exactly as it is, Abridge is perfect for you. We provide simple bridging software that lets you comply with MTD without changing how you work.

However, if you have dozens of employees, complex inventory to manage, or you actively want automated bank reconciliation, you might be better off with a full accounting suite.

Ready to comply with MTD?

Abridge makes it easy to submit your spreadsheet to HMRC.

Try Abridge

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Ready to comply with MTD?

Abridge makes it easy to submit your spreadsheet to HMRC.

Try Abridge