Question · MTD ITSA

Cheapest way to comply with MTD using spreadsheets

The cheapest MTD route is often keeping a spreadsheet and using bridging software. The spreadsheet must keep digital records and connect to HMRC through compatible software.

By Mehmet Demir · Last reviewed: 2 May 2026 · Source: HMRC · Methodology

Bottom line

You can usually keep Excel or Google Sheets if you maintain digital links and use bridging software that submits through HMRC's MTD APIs. The cheap option still needs discipline: no end-of-year paper reconstruction.

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What bridging software does

Bridging software takes figures from your spreadsheet and submits them to HMRC digitally. It does not usually replace bookkeeping, receipt storage, bank feeds, or categorisation.

When cheap is not best

If you have multiple properties, foreign income, VAT, staff, stock, or frequent transactions, full bookkeeping software may be worth the monthly cost because it reduces mistakes.

FAQs

Can spreadsheets comply with MTD?

Yes, if paired with compatible bridging software and maintained with digital links.

Is bridging software cheaper than full accounting software?

Often yes, especially for simple landlords or sole traders with a stable spreadsheet.

Can I type totals into HMRC manually?

MTD requires compatible software submissions, not normal manual entry into the old Self Assessment flow.

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This guide is general information, not professional tax advice. Always verify against HMRC's official guidance or speak to a qualified accountant.