MTD Bridging Software: Can I Still Use Excel?

Short answer: yes. Making Tax Digital (MTD) doesn't ban spreadsheets. It does, however, require a digital link between your records and the data submitted to HMRC. That's where bridging software comes in.

What MTD actually requires

Under MTD for VAT (and MTD for Income Tax from April 2026), you must:

1. Keep digital records of income and expenses.
2. Use MTD-compatible software to submit returns to HMRC.
3. Maintain a digital link between the source records and the submission — no manual retyping or copy-paste of figures.

Spreadsheets count as digital records. The question is just how you get them to HMRC.

What bridging software does

Bridging software is a small connector that:

• Reads numbers directly from a defined cell range in your spreadsheet.
• Maps them to the boxes on the VAT return (or quarterly update).
• Submits to HMRC over the MTD API.

Because the connection is automated, the digital link rule is satisfied.

What counts as a digital link?

HMRC accepts:

• Cell formulas (=A1+B1).
• CSV imports.
• API calls between systems.
• Linked spreadsheets (='Sheet2'!A1).
• Email of CSVs followed by import (acceptable, with care).

What doesn't count:

• Retyping a figure into a different system.
• Copy-paste of values (without paste link).
• Manual rounding adjustments outside the digital chain.

When bridging makes sense

• You already have a working spreadsheet system you trust.
• Your bookkeeping is simple — a few dozen transactions a quarter.
• You're a landlord with one or two properties.
• You don't want to migrate to a full accounting package.

When it doesn't

• You need invoicing, payroll or bank feeds — a full accounting package will save more time than bridging.
• Your business is growing fast and the spreadsheet is becoming unwieldy.
• You'd rather not maintain the macros / formulas yourself.

How Unfiled fits in

Unfiled imports and categorises transactions. Check current in-app VAT filing availability and connection requirements before relying on it for a deadline. Check the supported import and filing workflow for your records. Do not assume VAT support also covers MTD Income Tax updates.

Summary

Excel is fine under MTD as long as the figures travel to HMRC over a digital link. Bridging software provides that link. Choose a workflow that preserves digital links and supports the tax service you need.