If you already keep your financial records in a spreadsheet, bridging software gives you a way to continue using that setup under Making Tax Digital.
It connects your spreadsheet to HMRC, allowing you to send the required updates without moving all your records into full accounting software.
But is bridging software a permanent option, or only a short-term fix?
The simple answer is that there is currently no fixed time limit on how long you can use bridging software for MTD. It is a recognised way to meet the Making Tax Digital requirements, provided your records are kept digitally and your chosen product is compatible with HMRC’s systems.
Bridging software can be a straightforward, lower-cost option if your spreadsheet already works well. Fuller MTD software may be more useful if you want bank feeds, automatic categorisation, receipt capture and wider bookkeeping support.
Here’s how both options work and how to decide which one best fits the way you manage your records.
Can I Still Use Bridging Software for MTD?
Yes. You can still use bridging software for Making Tax Digital.
HMRC recognises software that connects to existing digital records, as well as software that creates and stores those records itself. Bridging software falls into the first category.
It allows you to maintain your business records in a spreadsheet and then transfer the required figures digitally to HMRC.
Bridging software can be used for:
● Making Tax Digital for VAT
● quarterly MTD for Income Tax updates
● your year-end MTD tax return, where supported by the product
There is no announced expiry date or planned phase-out for this type of software.
That means you do not need to switch to full accounting software after a particular number of months or tax years. You can continue using a bridging option for as long as it remains compatible with HMRC and continues to meet your needs.
Tax rules and software requirements can change overtime, so it is sensible to check that your product remains HMRC-recognised. But bridging software is not currently treated as a temporary concession.
Why Do People Think Bridging Software Is Temporary?
Some of the confusion comes from the early introduction of Making Tax Digital for VAT.
When MTD for VAT was first introduced, HMRC allowed a temporary soft-landing period for some digital-link requirements. During that period, businesses had more flexibility over how they transferred information between different software products.
That relaxation ended in 2021. It did not mean that bridging software itself was withdrawn.
VAT-registered businesses could continue using bridging software, but information needed to move between their spreadsheet and submission software using acceptable digital links.
The same basic distinction matters for MTD for Income Tax:
● bridging software is permitted
● digital record keeping is required
● transfers between separate parts of the software setup must remain digitally linked
The temporary part was the relaxation of certain digital-link rules, not the right to use bridging software.
What Does Making Tax Digital Require?
Making Tax Digital for Income Tax changes how some sole traders and landlords keep records and report information to HMRC.
MTD for Income Tax began on 6 April 2026 for people with qualifying income over £50,000.
The threshold is being reduced in stages:
● from April 2026: qualifying income over £50,000
● from April 2027: qualifying income over £30,000
● from April 2028: qualifying income over £20,000
Qualifying income is your gross income from self-employment and UK property before expenses are deducted.
If MTD applies to you, you generally need to:
- maintain digital records of your business or property income and expenses
- submit quarterly updates to HMRC
- complete your year-end MTD tax return by 31 January
You must use compatible software to complete these steps. HMRC does not provide its own MTD software, so you need to choose a product from an external provider.
That can be full bookkeeping software or a bridging tool connected to your existing spreadsheet.
How Does MTD Bridging Software Work?
Bridging software creates a digital connection between your spreadsheet and HMRC’s MTD systems.
You continue to record your income and expenses in your existing spreadsheet. When an MTD submission is due, the bridging tool takes the relevant totals and sends them to HMRC in the required format.
A typical process might look like this:
- Record your income and expenses in a spreadsheet.
- Keep that spreadsheet up to date throughout the quarter.
- Connect or upload the spreadsheet to the bridging tool.
- Select or map the cells containing the figures HMRC needs.
- Review the submission.
- Send the quarterly update through the software.
Your spreadsheet remains your main record-keeping system. The additional software handles the connection with HMRC.
Most bridging software is therefore focused on submissions rather than everyday bookkeeping. It does not necessarily replace your spreadsheet or change how you organise your records.
What Are Digital Links?
A digital link is an electronic transfer of information between different parts of your MTD software setup.
If your records are held in a spreadsheet and your submissions are made through a separate bridging product, the figures need to move between them digitally.
Depending on the software, that could involve:
● importing a CSV file
● uploading a spreadsheet
● linked cells between spreadsheets
● an automated transfer between systems
● an application programming interface, usually called an API
The main point is that you should not manually retype figures when moving data from one part of your MTD system to another.
The digital-links requirement helps reduce the risk of errors being introduced while information is transferred.
You can still type individual transactions into your original spreadsheet as part of your normal record keeping. The restriction concerns the transfer of information between different software products or parts of the submission process.
Your bridging software provider should explain how its digital-link process works and what spreadsheet formats it supports.
Why Bridging Software Works Well for Spreadsheet Users
Bridging software is a strong option if you already manage your records effectively in a spreadsheet.
It lets you keep the process you know, while adding the digital connection needed to send your MTD updates to HMRC.
That means you can:
● keep your existing spreadsheet
● avoid moving your records into a new bookkeeping system
● use a focused tool for quarterly updates and year-end filing
● keep costs lower if you do not need wider accounting features
● stay in control of how your records are organised
For sole traders and landlords with straight forward records, this can be the simplest route into Making Tax Digital.
You do not need to pay for bank feeds, invoicing or receipt capture if your spreadsheet already covers what you need. You simply need a reliable way to connect those records to HMRC.
When Full MTD Software Is the Better Fit
Full MTD software is designed for people who want more help with the bookkeeping itself.
Instead of entering and checking everything manually in a spreadsheet, you can connect your bank account, import transactions and keep your records updated more easily throughout the tax year.
This can be especially useful if you:
● have a higher number of transactions
● manage more than one income stream
● want to reduce manual data entry
● need help categorising income and expenses
● want to store receipts alongside transactions
● would find a live tax estimate useful
● prefer to keep bookkeeping and MTD filing in one place
The main advantage is not simply having more features. It is having less admin to do yourself.
If keeping a spreadsheet updated already feels easy, bridging software may be the most efficient choice. If bookkeeping takes more time than you would like, fuller software can remove more of that work.
Bridging Software or Full MTD Software?
The right choice comes down to how you want to manage your records.
Both routes can meet the Making Tax Digital requirements.
The question is not whether one is better than the other. It is whether you want software mainly for filing, or software that also helps keep your records up to date.
What to Look for in MTD Bridging Software
If you want to keep using a spreadsheet, the right bridging product should make the submission process simple.
Look for software that:
● is HMRC-recognised for MTD for Income Tax
● works with your spreadsheet format
● supports quarterly updates and the year-end tax return
● keeps the necessary digital links in place
● clearly shows which figures are being submitted
● flags formatting or connection problems
● confirms when HMRC has accepted the submission
● includes support when you need it
● has clear pricing with no unexpected extras
The best bridging software should fit around your current process rather than forcing you to rebuild it.
How Much Does MTD Bridging Software Cost?
Bridging software is usually priced lower than fuller bookkeeping software because it focuses on connecting your records to HMRC.
Providers may charge:
● monthly
● annually
● per submission
● according to the number of businesses or income sources
When comparing prices, check what is included.
A good-value product should cover the submissions you need, work with your spreadsheet and give you access to support if something goes wrong.
The cheapest option may not be the most useful if it only handles quarterly updates or does not support your year-end tax return.
Which Is the Best Bridging Software for MTD?
The best bridging software is the one that lets you keep your existing records and complete your MTD submissions with as little extra work as possible.
For most users, that means looking for:
● HMRC recognition
● simple spreadsheet uploads
● support for the full MTD process
● clear checks before submission
● helpful customer support
● straightforward pricing
There is no need to choose a large accounting package if all you want is a reliable connection between your spreadsheet and HMRC.
Equally, if you want software to take care of more of your bookkeeping, it makes sense to choose a fuller product from the start.
Choose the Coconut Setup That Matches How You Work
Coconut gives you both options, so you can choose the level of support that suits you.
Keep your spreadsheet with Coconut bridging software
Coconut bridging software is designed for people who already have a spreadsheet process they are happy with.
You can keep your existing records, connect them to Coconut and send your MTD updates to HMRC without moving everything into a new accounting system.
It is a straightforward route if you want:
● spreadsheet-based record keeping
● simple uploads
● HMRC-recognised MTD submissions
● clear pricing
● support when you need it
● no unnecessary bookkeeping features
You keep control of your records. Coconut handles the connection to HMRC.
Let Coconut handle more of the bookkeeping
If you would rather spend less time updating spreadsheets, Coconut’s full MTD software gives you more automation.
You can:
● import transactions automatically
● categorise income and expenses
● manage property and self-employment income
● see your estimated tax position
● prepare and send quarterly updates
● complete your year-end MTD tax return
● get expert help when you need it
This route is built for people who want their records, tax estimate and MTD submissions working together in one place.
Whatever your needs are, Coconut has a solution for you.
Start your 14-day free trial of Coconut bridging software today.
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