MTD bridging software for Excel: the full shortlist

The MTD rules require two things: your records must be digital, and the link between your records and HMRC must also be digital. No copy-pasting figures into the HMRC portal. No re-typing. A bridging tool sits between your spreadsheet and HMRC. You tell it which cells contain the totals HMRC wants (income, expenses, by category) and it submits them via HMRC's official API. Same legal outcome as using Xero or QuickBooks — different mechanics. You still own the spreadsheet. The bridging tool doesn't restructure it, doesn't take a copy, doesn't add new sheets. It just reads and submits.

Bridging is the right call if: • You've kept your own Excel or Google Sheets for years and the workflow works • Your affairs are simple enough that you don't need bank feeds or receipt scanning • You don't want to pay £84+ per year for Xero or QuickBooks just to submit a few numbers • You're VAT-registered and already use bridging for VAT — extending it to Income Tax is trivial Bridging is the wrong call if: • You don't currently have a working spreadsheet — bridging gives you zero structure • You want bookkeeping reports, management accounts, or a chart of accounts • You have complex VAT with partial exemption or multiple schemes • You want your accountant to log in and review the books — bridging tools don't offer that

Free, forever: • **My Tax Digital** — free for both MTD Income Tax and MTD VAT, no transaction caps, browser-based • **VitalTax free tier** — free for very low volumes, runs as an Excel add-in Cheap paid: • **123 Sheets** — around £12 to £36 per year depending on plan. Cheapest paid option. Excel-based. • **Tax Optimiser** — around £30 per year. Particularly good for landlords with multiple properties. For comparison, the cheapest full accounting tools start at £7/mo (Xero Simple, £84/yr) or £19/mo (FreeAgent if you don't bank with NatWest, £228/yr). If all you need is the MTD submission step, the £15–£30/yr bridging tools win on price by a wide margin.

Bridging tools are built around Excel (.xlsx). Most accept the file format directly. • Excel native — works everywhere, VitalTax even runs inside Excel as an add-in • Google Sheets — export as .xlsx, then upload to the bridging tool. Some users automate this with a scheduled Google Apps Script • Numbers (Apple) — export as .xlsx first • LibreOffice / OpenOffice — save as .xlsx (Calc handles this natively) If you maintain your records in Google Sheets, your workflow becomes: edit in Google Sheets, download as Excel, upload to bridging tool, submit. Annoying but workable.

Bridging wins when: • You already have a spreadsheet that works • You want the cheapest possible MTD compliance • Your affairs are simple — one income source, few expense categories • You're VAT-registered and already comfortable with bridging for VAT returns Accounting software wins when: • You don't have a spreadsheet (or yours is a mess) • You'd benefit from bank feeds, receipt scanning, invoicing • You want a clean P&L and balance sheet for lenders or your accountant • You have employees, CIS deductions, or anything beyond solo trading

For most spreadsheet users, the choice is between four bridging tools: 1. **VitalTax** — runs *inside* Excel as an add-in. Free tier, paid tiers very cheap. Best if you're Excel-native. 2. **My Tax Digital** — completely free, browser-based, no caps. Best if budget is the top priority. 3. **123 Sheets** — £12–£36/yr, the best-known paid option. Good documentation and support. 4. **Tax Optimiser** — strong for landlords with multiple properties; around £30/yr. All four are HMRC-recognised for MTD Income Tax and MTD VAT.

If you've kept your own spreadsheet for years, you do not need to pay £84+ per year for Xero or QuickBooks to comply with MTD. A £15/yr bridging tool — or a free one — is the legally equivalent outcome with much less disruption. The "you must buy accounting software" framing is software-vendor marketing, not HMRC policy.