MTD Bridging Software: When You Need It and How It Works

Introduction

MTD bridging software connects spreadsheets to HMRC so you can submit required updates without moving all records into a new system. It is useful if you already manage your accounts in spreadsheets and want to keep that workflow.

This guide explains how bridging software works, who needs it, and its limitations.

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What is MTD bridging software?

Bridging software is a tool that takes data from your spreadsheet and submits it to HMRC through approved MTD APIs. It does not replace record keeping. It simply acts as the digital link between your spreadsheet and HMRC.

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When do you need it?

You need bridging software if:

• you keep records in spreadsheets, and
• you must submit MTD ITSA updates to HMRC

Without bridging software, a spreadsheet alone is not enough for MTD submissions.

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What does bridging software usually require?

Most bridging tools require:

• a properly formatted spreadsheet
• clear income and expense categories
• a connection to your HMRC account

Some tools offer templates, but you are responsible for accuracy.

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Pros and cons

Pros

• keeps your spreadsheet workflow
• lower cost than full accounting software
• simple for basic cases

Cons

• more manual steps
• higher risk of errors
• limited automation and insights

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When to choose full MTD software instead

Full MTD software is often better if you:

• want bank feeds and automation
• need to track multiple income sources
• prefer a guided process

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How QTax helps

QTax eliminates the need for bridging tools by keeping records digitally and submitting updates directly. It is designed for MTD ITSA from day one.

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FAQs

Can I use any spreadsheet?

You can, but it must be compatible with your bridging tool. Most providers offer a template.

Is bridging software approved by HMRC?

Only specific products are approved. Always check the HMRC list before choosing a tool.

Can I switch from bridging to full software later?

Yes. Plan the switch between submission periods to avoid missing deadlines.

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Conclusion

MTD bridging software can work if you want to keep spreadsheets, but it adds manual steps. If you want fewer errors and more automation, full MTD compatible software is usually the better choice.