The Short Answer: Spreadsheets Alone Are Not MTD-Compliant
A plain Excel or Google Sheets spreadsheet does not meet HMRC’s MTD ITSA requirements by itself. To be compliant, your records must be held in a digital system that can submit data directly to HMRC via the MTD API — and standard spreadsheets have no such connection.
MTD ITSA requires digital record-keeping and direct API submission to HMRC. A spreadsheet handles the first part but not the second. Bridging software fills the gap.
What is Bridging Software?
Bridging software is a third-party tool that reads data from your spreadsheet and submits it to HMRC via the MTD API. You maintain your records in your spreadsheet as normal; the bridging software reads the relevant totals and handles the technical submission.
How a Spreadsheet + Bridging Software Setup Works
- Maintain your income and expense records in your spreadsheet throughout the quarter
- At the end of the quarter, ensure totals are in the format required by the bridging software
- Import or link your spreadsheet to the bridging software
- The bridging software submits your quarterly totals to HMRC via the MTD API
- HMRC acknowledges receipt and updates your estimated tax position
Bridging Software Options for Landlords
| Software | Works With | Monthly Cost | Best For |
|---|---|---|---|
| Absolute Tax MTD Bridge | Excel, Google Sheets | ~£10/month | Landlords with established spreadsheets |
| BTCSoftware | Excel | £12–20/month | Accountant-managed spreadsheets |
| DataDear | Excel | ~£10/month | Excel power users |
| GoSimpleTax MTD | CSV upload | ~£7/month | Simple income structures |
Spreadsheet + Bridge vs Purpose-Built Software — Comparison
| Spreadsheet + Bridge | Purpose-Built Software (Xero) | |
|---|---|---|
| MTD-compliant | ✅ Yes (with bridge) | ✅ Yes |
| Bank feed automation | ❌ Manual entry | ✅ Automatic |
| Per-property tracking | ⚠️ Manual setup | ✅ Built in |
| Receipt capture on mobile | ❌ No | ✅ Yes |
| HMRC real-time tax estimate | ✅ Via bridge | ✅ Direct |
| Total monthly cost | £10–20 bridge + spreadsheet time | £15–32 (included with AccTek) |
| Risk of submission errors | Medium — manual data linking | Low — automated categorisation |
When Using a Spreadsheet Makes Sense
A spreadsheet-based approach may be appropriate if you have a highly customised existing spreadsheet model that would be costly to recreate in new software, you are very comfortable with Excel and find cloud software unintuitive, or your income structure is simple (one property, standard expenses) and you are willing to manage bridging submission manually each quarter.
When You Should Switch to Dedicated Software
- You own multiple properties and need per-property income tracking
- You want bank feeds to reduce manual data entry
- Your accountant uses Xero (working from the same platform eliminates duplication)
- You want real-time tax estimates without additional manual steps
- You want receipt capture on your phone
Common Mistakes With Spreadsheet-Based MTD
Using the Wrong Cell References in the Bridge
Bridging software reads specific cells from your spreadsheet. If your spreadsheet layout changes between quarters, the cell references may break — submitting incorrect totals to HMRC without any warning. Regular testing of the bridge connection is essential.
Not Keeping the Spreadsheet Updated Digitally
Entering handwritten notes in a paper diary and then transferring them to a spreadsheet every few months does not satisfy MTD’s digital record-keeping requirement. Records must be captured digitally at or near the time of the transaction.
Frequently Asked Questions
Skip the complexity — AccTek includes Xero
Your Xero subscription is included in all AccTek plans. No spreadsheet wrangling, no bridging software — just clean, automated MTD compliance from £19.99/month.
Godwin Pinto ACA is a chartered accountant and founder of AccTek with 20+ years of experience accounting and tax for contractors, startup and SME .
Sources & Official Guidance
- ›Using bridging software for MTD for Income Tax — HMRC bridging software requirements
- ›Find software compatible with MTD — HMRC recognised software list including bridging tools
- ›How to keep digital records for MTD — HMRC digital record-keeping standards
All links verified as at July 2026. AccTek is not affiliated with HMRC.