MTD bridging software: keep your spreadsheet, file with HMRC
Last updated: · Prices checked on vendor sites on 31 October 2026
MTD bridging software lets you keep your existing spreadsheet and still meet Making Tax Digital for Income Tax (MTD for ITSA). It reads your totals and sends quarterly updates to HMRC. On 31 October 2026 My Tax Digital was free, 123 Sheets cost £19.75 a year and VitalTax £30 + VAT.
What bridging software does
GOV.UK splits MTD for ITSA software into two kinds: software that creates digital records, and software that connects to your records, which is what most people call bridging software. A spreadsheet on its own cannot talk to HMRC, so you either move to record-keeping software or add a bridge.
Bridging suits you if you already keep a tidy Excel or Google Sheets record of income and expenses, if your accountant gives you a template, or if your bookkeeping app is not on HMRC's list and can export to a spreadsheet.
How it works, step by step
- Keep recording each transaction in your spreadsheet, as GOV.UK requires digital records.
- Choose a bridging product listed on HMRC's software finder that supports your income sources.
- Sign up for MTD for ITSA and authorise the software to connect to your HMRC account.
- Each quarter, link or upload the spreadsheet. The software maps your categories and sends a summary covering the tax year so far.
- After the tax year ends, submit your tax return through software by 31 January. Check your bridge supports the tax return, not only quarterly updates.
MTD bridging software compared
All five products below are listed on HMRC's finder as connecting to records, with quarterly updates and the tax return at product level. Check the plan, too: Coconut's bridging plan lists quarterly updates only. 27 of the 103 products on the finder only sent quarterly updates.
| Software | How it connects to your records | Income sources | MTD for VAT | Price (vendor site) | Visit |
|---|---|---|---|---|---|
| My Tax Digital | Bridging mode imports your figures from a spreadsheet; Accounting mode keeps records in the web app | Sole trader, UK property, Foreign property | Yes | Free (£0)Price source: mytaxdigital.co.uk, checked 31 Oct 2026 | Visit |
| 123 Sheets | Insert 123 Sheets' worksheet into your own spreadsheet (or use theirs, £40 + VAT extra), then upload the file to the 123 Sheets website, which sends the summary to HMRC | Sole trader, UK property, Foreign property | Yes | £19.75/yearex. VAT · First-year price, including the 50% discount on the vendor page. No later-year price is published there.Price source: 123sheets.com, checked 31 Oct 2026 | Visit |
| VitalTax | Excel add-in from the Microsoft Office Store; select cells and VitalTax maps them into the quarterly update | Sole trader, UK property, Foreign property | Yes | £30/year+ VAT · First submission freePrice source: www.vitaltax.co.uk, checked 31 Oct 2026 | Visit |
| Coconut | Download Coconut's MTD spreadsheet template, then one-click upload of the completed sheet. The £49.99 bridging plan lists quarterly updates only; the year-end submission is on the MTD filing plan | Sole trader, UK property, Foreign property | Yes | £49.99/yearAnnual onlyPrice source: www.getcoconut.com, checked 31 Oct 2026 | Visit |
| Hammock | Also listed by HMRC as bridging software | UK property, Foreign property | No | Basic, 1–3 properties: £8/month · £76.80/year+VAT · Annual billing saves 20%Standard, 4–10 properties: £15/month · £144/year+VAT · Annual = 12 × monthly less 20%Plus, 11–20 properties: £25/month · £240/year+VAT · Annual = 12 × monthly less 20%Beyond, 21+ properties: From £31.50/mo ex VAT (£302.40/yr), confirmed by property countPrice source: www.usehammock.com, checked 31 Oct 2026 | Visit |
Income-source and VAT statuses are copied from each product's HMRC finder page, checked 31 October 2026.Prices are list prices from each vendor pricing page on the same date, before introductory discounts. A pricing-page link is the source for the price only.
The short answer
- Cheapest: My Tax Digital. Free bridging mode that imports figures from your spreadsheet.Visit My Tax Digital
- Best for landlords: 123 Sheets. Dedicated landlord spreadsheet with profit per property, £19.75 a year first year.Visit 123 Sheets
- Best for sole traders in Excel: VitalTax. Excel add-in that works with your own layout, £30 + VAT a year with the first submission free.Visit VitalTax
Bridging or full accounting software?
Bridging keeps costs low and changes nothing about how you record. Full software such as FreeAgent or Xero adds bank feeds, invoices and automatic categorising, which saves time if you have many transactions. See the FreeAgent vs Xero comparison or the full list of HMRC-recognised software.
Not sure you need MTD for ITSA yet? Check the thresholds in our MTD for ITSA guide.
Sources (GOV.UK)
- Choose the right software for Making Tax Digital for Income TaxSource: GOV.UK, published , updated
- Find software that works with Making Tax Digital for Income TaxSource: GOV.UK, published , updated
- Use Making Tax Digital for Income Tax: send quarterly updatesSource: GOV.UK, published , updated
- Sign up for Making Tax Digital for Income TaxSource: GOV.UK, published , updated
- HMRC software finder: Find software that works with Making Tax Digital for Income TaxSource: HMRC service on GOV.UK, checked
Frequently asked questions
What is MTD bridging software?
MTD bridging software connects to records you already keep, such as an Excel or Google Sheets spreadsheet, and sends the totals to HMRC. GOV.UK describes it as software that connects to your records rather than software that creates them.
Is bridging software accepted by HMRC?
Yes, if the product is listed on HMRC's software finder. On 31 October 2026 the finder listed 123 Sheets, VitalTax, My Tax Digital and Coconut as bridging software for sole traders and landlords.
Can bridging software submit my tax return as well as quarterly updates?
Some can. HMRC's finder showed 123 Sheets, VitalTax and My Tax Digital supporting both quarterly updates and the tax return. Coconut's £49.99 bridging plan lists quarterly updates only, and some other products only send quarterly updates. Check before you buy.
Can I use one product for quarterly updates and another for the tax return?
Yes. GOV.UK allows more than one software product, but only one product for each separate submission, and you must make sure the products work together.
What is the cheapest MTD bridging software?
My Tax Digital was free on 31 October 2026. Among paid options, 123 Sheets advertised £19.75 per taxpayer for the first year (ex. VAT) and VitalTax charged £30 + VAT per year for one National Insurance number.