Making Tax Digital isn’t just around the corner, its already here. From 6 April 2026, sole traders and landlords earning more than £50,000 have been required to keep digital records and to submit quarterly updates of revenue and expenses to HMRC using HMRC-recognised software. From April 2027, the threshold reduces to £30,000, and in April 2028 it reduces further to £20,000. If you are above the current £50,000 threshold and have not yet signed up, your first quarterly submission deadline is 7 August 2026. It is worth getting your software in place and your records organised well before that date rather than leaving it to the last minute.
Try AbraTax for MTD Income Tax for free →
If you’re already using Excel or other spreadsheets to track your income and expenses, you might be wondering if you really need to move everything to full accounting software. The good news is, you may not have to. According to HMRC, some software can connect to existing records held in spreadsheets, and this kind of software is often called bridging software. That means there are different kinds of MTD software to choose from and you will not have to rely entirely on full accounting software, which is often expensive and too confusing.
Some are full accounting platforms with bank feeds, invoicing, and bookkeeping tools. Others are simple bridging tools to help spreadsheet users keep their existing records and submit updates to HMRC.
In this article, we review and compare 10 of the best MTD bridging software for income tax in the UK. Read on for what each tool does, who it's best for, and what you need to consider before deciding which is the best option for you.
TL;DR - Top 10 MTD Bridging Software Options in the UK
- AbraTax - A spreadsheet first MTD Income Tax tool for landlords, sole traders and agents who want templates, live tax estimates and client workflow support
- 123 Sheets - An established Excel-based MTD bridging tool for users and agents who want spreadsheet filing with client subaccounts and deadline visibility
- VitalTax - An Excel add-in for confident spreadsheet users who want to submit MTD Income Tax updates directly from Excel.
- Abridge - A simple MTD bridging tool for spreadsheet users who want Excel, Google Sheet, CSV upload, and flexible review workflows.
- GoFile - A fast MTD filing tool for agents and self-filers who want to import figures from spreadsheets, CSV files, or existing records
- TaxNav - A guided MTD Income Tax tool for sole traders, landlords, and accountants who want spreadsheet imports, client visibility, and year-end support
- TaxHeaven - A bookkeeping-style MTD tool for self-filers who want automation, bank feeds, receipt scanning, and real-time tax estimates
- 123e-Filing - A low-cost MTD bridging tool for users who want to complete an Excel template, upload it, and submit it to HMRC
- My Tax Digital - A free MTD tool for users and agents who want both spreadsheet bridging and in-platform digital record keeping
- Andica - An Excel-based MTD self-employment bridging tool from an established UK tax software provider for sole traders, landlords, and agents
What is MTD bridging software?
MTD Bridging Software links your current digital records to HMRC's Making Tax Digital system. HMRC describes this as software that connects to records already held in spreadsheets or other accounting tools.
This is handy if you already have a record-keeping system that works for you. For example, as a sole trader, you may want to track your sales, mileage expenses, and invoices in Excel. As a landlord, you can record rent, repairs, mortgage interest, and property costs in the spreadsheet. Agents reading this - you may have clients who are comfortable with maintaining records in Microsoft Excel or similar spreadsheets. Since Excel cannot connect directly to HMRC, bridging software will provide the necessary digital connection it needs to be MTD compliant.
Bridging software works very simply:
- You keep your digital records in a spreadsheet or use a template provided by AbraTax or your chosen software.
- When you prepare a quarterly update, you enter or link the relevant income and expenditure numbers into the template.
- You then upload the spreadsheet or connected data into the bridging software, review the totals, check that the figures are correct and digitally linked, and submit the update to HMRC through the bridging software.
The important thing to remember is that the software should help you keep a clear digital record trail. If you're using a template, you will want to make sure that the relevant fields are linked correctly to your records rather than retyping each figure each time.
AbraTax is especially built for those who need a simpler way to be compliant with making tax digital. AbraTax provides templates for each income source and clear instructions and guidelines for users who want to work from spreadsheets. If you're a spreadsheet person looking for a simpler and more affordable method for MTD, then bridging software might be your best option.
If you want to know how to register for MTD Income Tax using AbraTax, read this blog.
Can you use spreadsheets for MTD Income Tax?
Yes, you can use spreadsheets for MTD Income Tax as long as they are part of a digital record-keeping process and are connected to HMRC through compatible software.
HMRC guidance confirms that some MTD software can connect to existing records held in spreadsheets, and that is often called bridging software, as mentioned earlier.
This point is worth making clearly because there is a lot of confusion around it. Most people believe that spreadsheets might get banned from HMRC in future. At Accountex, one of the biggest accounting events that happens every year in London, the AbraTax team attended an HMRC talk where an HMRC official also confirmed that spreadsheets are allowed under MTD if you already use Excel or Google Sheets to track income, expenses, property costs, etc. MTD does not automatically mean you have to change the way of working.
Some messaging in the MTD software market can make it sound as if full accounting software is the only option that is really available, but in reality, spreadsheets have been part of business and record-keeping for years. They are like email, not new or flashy, but still used every day because they are simple, familiar, and useful. Even after so many new technologies, emails have never been misplaced. Similarly, for many agents, landlords, and small businesses, spreadsheets are still the place where records are easiest to understand and control, so HMRC wouldn't ban spreadsheets that easily.
The important thing is that the spreadsheets need to work properly as a digital record. You should keep the data digitally, use formulas or links when needed, prepare the figures for your quarterly update, and then connect those figures to HMRC through MTD bridging software.
Choose a software that helps you keep the spreadsheet route compliant rather than forcing you into a completely new bookkeeping system.
If you are a spreadsheet user reading this, suggest that your agent use bridging software if you feel you're more comfortable using spreadsheets.
MTD bridging software vs full accounting software
Not every taxpayer needs the same type of mtd software. HMRC recognises that and provides you with different options that you can choose from. Read through the comparison table below and choose what is comfortable for you or your practise.
| Comparison | MTD bridging software | Full accounting software |
|---|---|---|
| Best for | Sole traders, landlords and agents who already keep records in spreadsheets. | Businesses that want to manage bookkeeping, invoicing, bank feeds, and tax in one system. |
| How it works | You keep your digital records in a spreadsheet. Prepare the relevant figures, upload them to the bridging software, review the totals, and submit to HMRC. | Record income and expenses directly inside the platform. Then use the same system to prepare and send MTD updates |
| Spreadsheet friendly | Yes, this is the main reason many people choose bridging software. | Limited, some platforms allow inputs, but usually, the main workflow happens inside the software. |
| Ease of use | Low, if your spreadsheet records are already organised or if the software you choose provides templates and guidance | Usually, higher because you may need to move records, connect bank feeds, and learn new software. |
| Features | Focus on MTD submission, digital records, templates, quarterly updates, and final declaration support. | Includes broader features such as invoicing, receipt capture, bank feeds, reporting, bookkeeping automation, and AI |
| Cost | Often lower and between the range of £10 - £50 per year. | Often higher, because it includes wider accounting features, usually in the range of £20 to £50 per month |
| Main advantage | lets you keep a familiar spreadsheet-based process | Gives you a full business finance system in one place |
| Watch out for | You need clean, accurate digital records. | You may pay for features you do not need. |
How we selected the best MTD bridging software options
We assessed each provider against the following criteria:
- HMRC recognition: This means only software on the official list of compatible software supported by HMRC is included.
- Spreadsheet support: We looked to see if the software supports a spreadsheet plus a bridging route.
- Agent/accountant support: How easy is it for an agent to manage multiple clients?
- Ease of use: How fast can someone submit their first quarterly update?
- Pricing: Value for money for what you get.
- Income type: Self-employment, UK property, Foreign property.
- Customer support: Responsiveness and knowledge about Making Tax Digital.
Top 10 MTD Bridging Software Options for Income Tax in the UK
- AbraTax
AbraTax is a UK-based tax software provider which offers MTD Income Tax, MTD VAT, and self-assessment tools for individuals, landlords, sole traders, and agents managing multiple clients. AbraTax is HMRC recognised and supports quarterly updates and the final declaration for MTD Income Tax. (final declaration and other income sources built awaiting HMRC approval imminently)
Trustpilot rating: 4.0/5
What sets AbraTax apart is that it keeps the filing process very simple. Users can use templates for self-employment, UK property, and foreign property, upload their digitally linked records, check the figures, see an estimated tax position and submit updates to HMRC. It also provides filing confirmations and submission records, which are very useful for keeping a digital trail.
Try AbraTax for MTD Income Tax for free →
For agents, AbraTax lets you connect your agent services account, add clients, group them, track, file, and link progress, and manage submissions from one dashboard. Practices with teams can add multiple users, assign clients to team members, use client and partner approval workflows, and connect multiple agent services accounts where needed. White labelling is also available if requested.
Managing MTD submissions for multiple clients? Register as an agent on AbraTax →
Pros:
- Ready-made templates, demo videos and clear instructions make the process easier and stay compliant without having to learn new software.
- Does not require bank feeds - this gives users greater control over sensitive financial data.
- The agent dashboard offers client approval workflows and two-factor authentication, which are not always clearly available in simpler bridging tools.
- Handles joint landlords cleanly, which larger platforms have struggled.
- One licence includes self-employment, UK property, and foreign property with no per-property charges and unlimited submissions and amendments per quarter.
- UK-based support team
Cons:
- Does not include broader accounting functions such as invoicing, bank feeds, or receipt capture for users or agents who want an all-in-one system.
Best for: Landlords, sole traders, and agents who want to work with spreadsheets and want a simpler way to file MTD Income Tax without bank feeds or extra bookkeeping features.
Pricing: Individual pricing starts from £5 per month, £8 per month for family and groups and £20 per month for extended.
For agents, Basic starts at £4 per client per quarter, while Pro starts at £11.50 per client per quarter.
- 123 Sheets
123 Sheets is a reputable provider of MTD bridging software that focuses on spreadsheets and Excel-based filing.It is HMRC recognised for MTD Income Tax and supports self-employment, UK property, and foreign property.
Trustpilot rating: 4.9/5
For MTD Income Tax, you can continue with your own spreadsheet and insert an additional worksheet to collect the quarterly summary data. It also supports final declaration and supports Sage and QuickBooks Excel exports. If you already use any of these platforms, then you can feed that data straight into 123 Sheets without manual re-keying.
For agents, it includes client sub-accounts, quick client switching, staff access permission and a to-do page that orders all upcoming client submissions by due date.
Pros:
- To-Do page and deadline management
- support for Sage and QuickBooks Excel exports
- reducing manual data entry
- Support is available through email, contact forms, FAQs, demo videos, and help videos.
Cons:
- no direct bank feeds, reconciliation, invoicing or receipt scanning features
Best for: Accountants, sole traders, and landlords who want an established spreadsheet-based MTD tool with client sub-accounts and deadline visibility.
Pricing: £19.75 per client in year one, 50% introductory discount excluding VAT, likely £39.50 on renewal.
- VitalTax
VitalTax works as a browser-based tool and is particularly known for its Excel add-in, which allows the user to submit quarterly updates directly from within their spreadsheet without having to upload a separate file.VitalTax is HMRC recognised and supports quarterly updates, final declaration, annual submissions, and tax calculations for MTD Income Tax.
And it supports a wide range of income sources, including self-employment, UK property, foreign property, employment income, dividends, savings, interest, capital gains, pensions, allowance and reliefs.
For Agents, VitalTax also works for multiple MTD Income Tax clients. You can create an agent account, add clients, set up their income sources, and submit updates to HMRC from the same VitalTax account.
Trustpilot rating: 4.0/5
Pros:
- Excel Add-in is a genuinely convenient feature for confident Excel users.
- Phone and email support available Monday to Friday, 9 am to 5 pm with email support also available.
Cons:
- The agent experience is more functional and does not appear to offer the same level of dashboard approval workflow or team management features as some practice-focused tools.
Best for: Confident Excel users and smaller agents who want a flexible MTD Income Tax add-in with broad income coverage.
Pricing: From £30+ VAT per year for one taxpayer. Unlimited package starts from £198 + VAT, same price for individuals and agents.
- Abridge
Abridge is built for spreadsheet users who want a clear way to file quarterly updates and final declarations through HMRC. It is HMRC recognised and supports MTD filing for self-employment, UK property, and Foreign property. It supports Excel, Google Sheets, CSV upload, and web upload, so users can choose the route that best matches how they already keep their records.
The product is easy to understand. Keep their spreadsheet, select or map the relevant totals, review figures, and submit to HMRC.
For agents, Abridge offers a free practice dashboard with different workflow options. Clients can prepare and submit themselves, accountants can review before submission, or agents can manage the filing directly. This is good for companies with varied levels of client involvement.
They also offer UK based support, FAQs and demo access.
No Trustpilot Profile
Pros:
- Free practice dashboard with practice-wide visibility.
- Live tax calculation is available for users to check their position before submitting.
- 100-day money-back guarantee.
- Supports Excel, Google Sheets, CSV, and web upload.
Cons:
The wider practise features like staff roles, advanced permissions, multi-ASA support, and enterprise reporting are not available.
Best for: Spreadsheet users and agents seeking a simple MTD software with flexible client review workflows.
Pricing: Starting at £29 per year, VAT including, with a 100-day money-back guarantee
- GoFile
GoFile is HMRC recognised MTD software for Income Tax, VAT, and CT600 filing with the spreadsheet-friendly route for users who already keep records outside bookkeeping software for self-filers. It lets sole traders and landlords connect securely to HMRC, import figures from spreadsheets, CSV files, or existing records, review the update, and submit quarterly MTD Income Tax updates in a few clicks.
According to HMRC's software listing, it supports self-employment and UK property quarterly updates, with other income areas such as dividends, interest, pensions, and capital gains handled as part of the final declaration journey.
For accountants and agents, GoFile offers a practice dashboard for managing VAT, income tax, and corporation tax filings from one account. It supports multiple clients, spreadsheet and bookkeeping software exports, deadline tracking, volume-based pricing and white labelling.
It also supports income tax, MTD, and VAT with UK specialist support and offers a 30-day free trial.
Trustpilot rating: 4.2/5
Pros:
- White labelling is included free for all agent plans
- Works with Excel, Google Sheets, Sage, QuickBooks, and CSV exports.
- Self-filers can add an accountant without sharing their login.
Cons:
- Only supports sole traders and UK property. Does not support foreign property.
Best For: Agents and accountants who want a fast spreadsheet-to-HMRC-filing tool with simple pricing that scales by client volume.
Pricing: For self-filers, it starts with an introductory offer of £39.99 for the first year, then 49.99 per year +VAT after the first year. For Agents, from £4.99 + VAT per month for one client (excluding VAT).
- TaxNav
TaxNav is an HMRC-recognised MTD Income Tax software for landlords, sole traders, and accountants, with spreadsheet import, quarterly updates, and final declaration. It is browser-based and works for any device, and allows the user to import records from Excel, Google Sheets, and Apple Numbers.
One useful point is that a single licence covers self-employment, UK property, and foreign property, with no separate per-property charge.
For accountants, TaxNav HQ gives visibility across clients, so firms can monitor progress without doing every part of the data entry themselves. It also includes guided setup, client communication materials, automated reminders, supporter resources and a reseller model for practices.
TaxNav also offers UK-based support, guides, FAQs, walkthroughs, a support hub, and client communication materials.
Visit website Not yet reviewed on Trustpilot
Pros:
- One licence covers self-employment, UK property, and foreign property, with no per-property charges
- gives agents practice-wide visibility
- automated client reminders and AI error checking
- strong onboarding support, including walkthroughs, guides, navigators, support hub, and client communication materials
- real-time tax estimates after each submission
Cons:
- At £60 per year (excluding VAT), it is one of the pricier options on the list.
Best for: Sole traders and landlords with multiple income sources who want a clean, device-flexible MTD tool, and agents looking for practice-wide oversight with automated client reminders built in.
Pricing: For Self Filers, at £60 per year (excluding VAT).
- TaxHeaven
TaxHeaven is a browser-based, HMRC-recognised MTD software with both a free plan and a paid Pro plan. It is less of a pure bridging spreadsheet tool and more of a tax and bookkeeping platform, but it still supports spreadsheet imports for users who want to bring in existing records.
The free plan covers quarterly updates and the final declaration for self-employment and UK property income and foreign property income, with spreadsheet import included. It is a solid entry point for individuals with straightforward records who want to get compliant without any upfront cost.
The Pro plan steps up considerably, adding continuous bank auto sync, unlimited AI receipt and invoice scanning, automatic HMRC categorisation, real-time tax estimates, payment on account forecasts, and automatic income splitting for co-owned properties
Not yet reviewed on Trustpilot
Pros:
- Free plan available with no credit card required, with no time limit
- AI receipt scanning and automated categorisation and bank feeds on Pro
- Automatic income and expense splitting for co-owned properties at 50% partner discount
- Real-time tax estimates and payment on account forecasts
Cons:
- Free plan limits automated businesses to one, with manual entry required for additional businesses
- No downloadable MTD spreadsheet templates
- Joint owner account syncing is a Pro-only feature
- No agent-facing dashboard or multi-client management, designed purely for self-filers
- Priority support is Pro only; free plan support is limited
Best for: Self-filers who want a free entry point into MTD compliance, or sole traders and landlords willing to pay a small annual fee for a fully automated bookkeeping and tax filing experience.
Pricing: free plan available, Pro at £49 per year.
- 123 e-Filing
123 e-filing is an online MTD IT software for self-employed users and landlords. It lets users complete an Excel template, upload it to the software, review the data, and submit for quarterly updates plus a final declaration to HMRC.It supports self-employment, UK property income, and foreign property.
For self-filers, the main appeal is simplicity and price. The MTD ITSA package comprises 4 quarterly returns and a final declaration with templates for self-employment and rental income. After filing, users can also get a tax summary report to help with record keeping.
For agents, 123 e-filing offers fixed annual written packages that can be used for MTD, ITSA and VAT submissions. This might suit agents who need a low-cost filing route and are happy to manage clients' deadlines and workflows outside the software.
Trustpilot rating: 4.0/5
Pros:
- One of the lowest price points on this list for both the self-filers and agents.
- Readymade Excel templates are provided for self-employment and rental income
- Free online chat is included Monday to Friday 9 a.m. to 5 p.m., with extended hours until 10 p.m. in January.
Cons:
- No live tax calculations or live tax estimates
- No agent dashboard, client list, or deadline tracker
- No automated reminders, bank feeds, or workflow automation
Best for: Self-filers and agents looking for a low-cost, simple MTD bridging tool and are happy to manage their own deadlines and workflows externally.
Pricing: £18 including VAT for self-filers for up to 5 MTD ITSA or VAT returns. Agent packages from £40 including VAT.
- My Tax Digital
My Tax Digital is a free MTD software for VAT and Income Tax with a bridging mode that imports figures from spreadsheets and submits them to HMRC. It supports self-employment, UK property and foreign property income.
It gives users two ways to work, one, Bridging mode, where users keep their records in spreadsheets, then import the figures into My Tax Digital for submission. Two, an accounting mode where users can keep digital records inside the software, and the system calculates the VAT or Income Tax figures automatically.
Trustpilot rating: 3.2/5
Pros:
- Free to use with no hidden charges
- Offers both bridging and accounting modes available in one platform.
- Supports unlimited businesses and individuals, making it genuinely usable for agents
- E-invoicing, bank import, and CSV export included.
Cons:
- The user experience may feel more functional than polished
- Advanced agent workflow features, such as client approval workflow, deadline dashboards and practice management tools, are not available.
- Customer support details are limited. No clearly published hours or response time guarantee.
Best for: Sole traders, landlords and agents who want a free, HMRC-recognised option that supports both spreadsheet bridging and in-platform record keeping without paying for features they do not need.
Pricing: free for MTD VAT and MTD ITSA features.
- Andica
Andica MTD ITSA software is HMRC recognised and offers an Excel spreadsheet bridging tool for MTD/ITSA for sole traders and landlords, keeping the submission process familiar for users already working in spreadsheets. It supports quarterly updates for self-employment and UK property income.
The workflow uses a drag-and-drop field mapping system where you link your Excel spreadsheet to the software and map your figures to the relevant HMRC fields by dragging and dropping.
For agents, it also includes digital authorisation to handle client submissions directly with HMRC.
No Trustpilot Profile
Pros:
- A multi-user licence is available
- Sample spreadsheet templates are provided
- Backed by an established software provider with a wide product range.
Cons:
- Support details are limited
- Non-mandated income source is noted as a future edition not yet available
- Does not support the final declaration and foreign property income
- No live tax calculation or real-time tax estimates are clearly stated
Best for: Sole traders, landlords, and agents who want a low-cost Excel-based bridging tool from an established UK provider without needing practical business management features.
Pricing: From £30 per year, excluding VAT.
MTD bridging software comparison table
Here is a quick comparison of the top ten MTD bridging software options that have been reviewed in this guide. ( Last updated 21 May 2026)
| Rank | Software | Best for | Spreadsheet Support | Agent support | Income types supported | Final Declaration support | Starting Price |
|---|---|---|---|---|---|---|---|
| 1 | AbraTax | Sole traders, landlords, joint property owners, and agents managing multiple clients | ✔ Excel templates with digital linking built-in | ✔ Multi-client dashboard approval workflows, multiple ASA support | Self-employment, UK property, foreign property | ✔ Supported | Individuals from £5 per month. Agents from £4 per client per quarter. |
| 2 | 123 Sheets | Accountants managing multiple clients who use spreadsheets or Sage or QuickBooks exports | ✔ Insert worksheet into existing spreadsheet | ✔ Client Subaccounts, Deadline Management, and Staff Permissions | Self-employment, UK property, foreign property | ✔ Supported | £19.75 + VAT in year one, likely £39.50 + VAT on renewal |
| 3 | VitalTax | Excel confident users and smaller agents wanting broad income coverage | ✔ Excel Add-in- submit directly from within your spreadsheet | ✔ Agent account client setup and income source configuration | Self-employment, UK property, foreign property, and wider self-assessment income | ✔ Supported | £30 + VAT per year for one taxpayer |
| Rank | Abridge | Spreadsheet users and agents who want structured client review workflows | ✔ Excel, Google Sheets, CSV upload and web upload | ✔ Free practice dashboard with client-led review lane and practice-led workflows. | Self-employment, UK property and foreign property. | ✔ Supported | £29 per year, VAT included |
| 5 | GoFile | Agents managing clients across VAT, income tax, and corporation tax in one place. | ✔ CSV and spreadsheet upload works with Excel, Google Sheets, Sage, and QuickBooks. | ✔practice dashboard white labelling, volume discounts, deadline tracking | Self-employment and UK property listed | ✔ Supported | Self-filers from £39.99 + VAT (first year), then £49.99 + VAT per year. Agents from £4.99 + VAT per client per month. |
| 6 | TaxNav | Sole traders and landlords with multiple income sources, agents wanting practice-wide oversight | ✔ Excel, Google Sheets, and Apple Numbers import | ✔ Agents, client visibility, reminders, and support materials | Self-employment UK property, foreign property | ✔ Supported | £60 + VAT per year |
| 7 | TaxHeaven | Self-filers wanting free MTD compliance or full bookkeeping automation | ✔ Spreadsheet import on free and pro plans | Mainly built for self-filers with no agent dashboard | Self-employment UK property, foreign property with wider income on pro | ✔ Supported | Free plan available. Pro from £49 per year. |
| 8 | 123 e-Filing | Self-filers and agents needing a low-cost submission tool | ✔Readymade Excel Templates for Self-Employment and Rental Income | Return-based packages only, no agent dashboard or deadline tracking | Self-employment, UK property and foreign property | ✔ Supported | £18 including VAT for up to 5 MTD ITSA or VAT returns |
| 9 | My Tax Digital | Users wanting a completely free mtd option with both bridging and accounting modes | ✔ Bridging mode imports figures directly from spreadsheets. | Unlimited businesses and individuals supported, but no client approval workflow or practise management tools | Self-employment, UK property, foreign property. | ✔ Supported | Free |
| 10 | Andica | Sole traders and landlords wanting a familiar Excel-based bridging tool from an established provider | ✔ Excel drag and drop field mapping | Digital authorisation for agents included. No dedicated practice dashboard | Self-employment and UK property | Not currently supported. | From £30 + VAT per year |
What to look for in the MTD bridging software?
Choosing an MTD bridging software isn’t only about choosing the cheapest one on the market. The right tool should match how you already keep records, what income source you need to report, and whether you are filing for yourself or managing clients as an agent.
First, you need to check if the software is HMRC-recognised for MTD Income Tax. Other tools support parts of the process, but choosing HMRC-recognised software gives you more confidence that it can connect with HMRC and handle the required submissions.
If you plan to use a bridging tool, spreadsheet support is crucial to check. A good MTD bridging tool should clearly lay out how you can use it with Excel, Google Sheets, CSV files, or templates. Find software that displays how features and figures are linked, uploaded, verified, and submitted.
Also, check which income sources are covered for MTD Income Tax. The main ones to look for are self-employment, UK property, foreign property, and multiple income sources. Some tools also support wider self-assessment income, such as dividends, savings interest, PAYE incomes, deductions, and capital gains. If you have a complicated tax situation, review this carefully.
Check if the software supports both quarterly updates and the final declaration so you can complete the entire MTD process in one place.
Another crucial factor to check is ease of use. The finest software usually offers a clear process to help you prepare your records, upload or link your spreadsheets, review the totals, check for errors, and submit to HMRC. Features like ready-made templates, demo videos, built-in validations, reminders, tax estimates, and downloadable submission records can make the process much easier - this is especially useful when MTD Income Tax is still new for many users.
For accountants and agents, client management is particularly crucial to look for. Features like client dashboards, deadline tracking, client groups, approval workflow, staff access, and clear audit trails. Security should be verified thoroughly, as the software can contain client tax records and submission history. It also helps if the software has useful security features like two-factor authentication, role-based access and encrypted data storage. These features help firms manage clients to work more safely, especially when two or more members are involved.
Finally, make sure you compare prices. Some tools charge per taxpayer, some charge per client, and others may charge by the number of returns. If you need to manage multiple clients, multiple income sources, final declaration support, or agent workflow features then a low headline price is probably not the cheapest option.
In short, the best MTD bridging software will help you stay compliant, keep your records organised, and file to HMRC without making the process any harder than it needs to be.
FAQs about MTD bridging software
1. What is MTD bridging software?
MTD Bridging Software links your current digital records to the HMRC's Making Tax Digital system. For example, if you track your income and expenses in Excel or another spreadsheet, bridging software can link those records and send the required updates to HMRC. HMRC describes this as software that connects to records already kept in a spreadsheet or other accounting tools.
2. Can I use Excel for MTD Income Tax?
Yes, you can use spreadsheets for MTD Income Tax as long as they are part of a digital record-keeping process and are connected to HMRC through compatible software.
HMRC guidance confirms that some MTD software can connect to existing records held in spreadsheets, and that is often called bridging software.
3. What is the best MTD bridging software?
The best MTD bridging software depends on your needs and tax situation. For sole traders and landlords who already use spreadsheets and want to keep things simple, AbraTax is built for that particular route, with ready-made templates, no bank fee requirement, it gives you a simple way to submit your quarterly submission and final declaration. For agents managing multiple clients, AbraTax, 123 sheets, and Abridge all offer dedicated practice features. For confident Excel users, Vitaltax's add-in lets you submit directly from within your spreadsheet, and if you're looking for the lowest possible cost, 123e-filing and MTD 4 income tax are among the most affordable options available in the market.
4. Is bridging software allowed for MTD Income Tax?
Yes, bridging software is fully allowed and officially supported by HMRC for MTD Income Tax. It is not a workaround or temporary fix. It is a legitimate compliance route that HMRC has specifically recognised and built into its software approval process. Spreadsheets have underpinned business record keeping for decades, and bridging software exists precisely because HMRC acknowledges that reality.
5. Do I need full accounting software for MTD Income Tax?
No, full accounting software such as Zoho, QuickBooks, or Sage is just one option, but it's not the only option available in the market. HMRC recognises two valid routes:
- Full accounting software where you manage bookkeeping and submit directly through the platform
- The spreadsheet plus bridging software route where you keep your own records and use a bridging tool to submit to HMRC
If your records are already well organised in a spreadsheet and you're comfortable using it, you do not need invoicing bank feeds or automated bookkeeping. There is no reason to pay for a full accounting platform and for the extra features that you won't use. Bridging software would typically cost a fraction of the price and does everything MTD requires.
6. What is the best MTD software for sole traders?
The right software for sole traders relies on how you store your records and how much you want to invest in the software. If you already use Excel or Google Sheets, AbraTax, Vital Tax, 123 Sheets, or Abridge, we let you stay with your existing records and submit compliantly without switching systems. If you want a free option, the TaxHeavens free plan and My Tax Digital both cover quarterly updates and final declaration at no cost. If you want full automation with bank feeds and AI categorisation, TaxHeaven's Pro offers it at £49 per year. For sole traders who simply want to get their quarterly updates filed as cheaply and quickly as possible, 123 e-filing and MTD 4 Income Tax are both under £20 per year.
7. When does MTD for income tax start?
MTD for income tax has already started from 6 April 2026. Sole traders and landlords with combined qualifying income over £50,000 must keep digital records and submit quarterly updates to HMRC using recognised software. The threshold then drops to £30,000 from April 2027 and to £20,000 from April 2028, bringing significantly more people into the scope of MTD each year. If you are above the current £50,000 threshold and have not yet signed up, your first quarterly submission deadline is 7 August 2026. It is worth getting your software in place and your records organised well before that date rather than leaving it to the last minute.
Choosing the right MTD bridging software
MTD for income tax is here, and the right software is the one that works with how you already keep your records, not against it. If you use spreadsheets and want to keep it that way, you do not need to move to expensive accounting software tools like AbraTax, 123 Sheets, VitalTax, and Abridge. They are all built around the spreadsheet route and will get you compliant without changing how you work.
If you want free, My Tax Digital covers the basics at no cost. If you want automation, bank feeds, and AI categorisation, TaxHeaven and GoFile step up for that.
For agents, the difference comes down to workflow. AbraTax, 123 Sheets, and Abridge all have practice-facing features, but they vary significantly in how they handle client approvals, deadline tracking, and team access. Most of the software mentioned in the listing above gives you a free first filing or has a trial period for a certain number of days or months, so it is worth testing before committing.
Whatever you choose, do not leave it until July. The first quarterly deadline is 7th August 2026, and getting your records and software in order before that date is far easier than doing it under pressure.
Try AbraTax for MTD Income Tax for free →