Can I Use Google Sheets for Making Tax Digital?
Quick Answer
Yes, you can use Google Sheets for MTD by using web-based bridging software like Abridge to link your spreadsheet directly to HMRC.
Google Sheets is a fantastic, free tool for managing your business finances. Because it lives in the cloud, you can update your income and expenses from your phone, tablet, or laptop.
But with Making Tax Digital (MTD) approaching, you might be wondering if your Google Sheets setup is still allowed. The answer is yes, but you cannot just email your spreadsheet to HMRC. You need to use bridging software.
The Challenge with Google Sheets and MTD
HMRC's MTD rules state that you must submit your tax updates using a "digital link." You cannot manually type your spreadsheet totals into the HMRC website.
To solve this, you need bridging software. However, there is a catch for Google Sheets users: many bridging software products on the market were built exclusively for Microsoft Excel. They often come as Excel "add-ins" that simply do not work with Google Sheets.
How to Connect Google Sheets to HMRC
To use Google Sheets for MTD, you need modern, cloud-based bridging software.
Instead of installing an add-in, cloud-based bridging software connects directly to your Google account. Here is how it works:
- Maintain your Google Sheet: Keep tracking your income and expenses in Google Sheets as usual.
- Log into your bridging software: Open your web-based bridging tool.
- Connect your Google account: Grant the bridging software secure permission to read your Google Sheet.
- Map your totals: Select the specific cells in your Google Sheet that contain your quarterly totals.
- Submit: The bridging software securely pulls the numbers from those cells and sends them to HMRC.
Abridge is built for the cloud. Unlike older Excel-only tools, Abridge connects seamlessly with Google Sheets, allowing you to submit your MTD updates in just a few clicks.
Why Stick with Google Sheets?
If you are already comfortable with Google Sheets, there is no need to pay monthly fees for complex accounting software. Google Sheets is free, highly customizable, and easy to share with your accountant if you have one.
By pairing Google Sheets with the right bridging software, you get the best of both worlds: the flexibility of spreadsheets and full compliance with HMRC's Making Tax Digital rules.
Ready to comply with MTD?
Abridge makes it easy to submit your spreadsheet to HMRC.
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Ready to comply with MTD?
Abridge makes it easy to submit your spreadsheet to HMRC.