Can You Still Use Spreadsheets Under Making Tax Digital?

One of the most common questions we hear: “Do I have to give up my spreadsheet for MTD?”. The short answer is no. The longer answer is: a standalone spreadsheet on its own is not compliant, but with the right setup, you can keep your existing workflow.

Why a Standalone Spreadsheet Isn’t Enough

Under Making Tax Digital, HMRC requires a “digital link”, an unbroken, automated connection between your financial records and HMRC’s systems. A spreadsheet by itself doesn’t have that link.

But that doesn’t mean your spreadsheet has to go.

What Is Bridging Software?

Bridging software sits between your existing spreadsheet and HMRC. It reads the data from your spreadsheet, formats it correctly, and submits it to HMRC’s MTD system via API — creating the digital link that makes you compliant.

Tools like CleanBooks are built specifically for this. Rather than forcing you onto a new platform, CleanBooks works with the spreadsheet you already have.

In practical terms:

1. You continue recording income and expenses in your spreadsheet as you do now.
2. At the end of each quarter, you open CleanBooks and point it at your spreadsheet.
3. CleanBooks reads the relevant figures and submits your quarterly update to HMRC.
4. Done.

Bridging Software vs Full Accounting Software

Bridging software is ideal if:

→ You’re comfortable with spreadsheets and have an established system → You want to minimise disruption → Your bookkeeping is relatively straightforward

Full accounting software may be better if:

→ You want automated bank feeds, receipt scanning, and invoicing → You have complex multi-source income → You’re already considering moving away from spreadsheets

For most sole traders and landlords we work with, bridging software like CleanBooks strikes the right balance — full compliance without the learning curve of an entirely new system.

Setting Up Bridging Software: What to Expect

Most bridging tools require you to structure your spreadsheet in a specific format, authorise the software to connect to your HMRC account, select the quarterly period and income source, review the figures, and submit.

With CleanBooks, initial setup takes around 15–20 minutes. After that, quarterly submissions typically take just 5–10 minutes.

Important: The Digital Link Rules

HMRC’s digital link requirement means there must be no manual re-keying at any point in the chain from your records to HMRC. Copy-paste between spreadsheets is currently accepted, but the safest approach is to work from a single source spreadsheet that your bridging software reads directly.

Don’t wait too long

HMRC has confirmed there will be no penalty points for late quarterly updates during the first year (2026/27). However, you are still expected to register and keep digital records from 6 April. The soft landing is breathing room to get your rhythm right, not a reason to delay.

→ Get registered today