Making Tax Digital (MTD) requires businesses and individuals to keep their tax records digitally and submit information to the HMRC through compatible software.
For some, that may mean moving to a full accounting platform. For others, it means keeping the spreadsheets or digital records they already use and adding bridging software to connect them to the HMRC.
That’s what MTD bridging software is for. The important part is making sure it actually supports the type of MTD reporting you need.
Related: Making Tax Digital Explained
Key Points
- MTD bridging software lets you continue using existing digital records, such as spreadsheets, while sending required information to the HMRC through compatible software.
- Bridging software can be a sensible option if your digital records are already organized and you don’t want to move everything into a full accounting system.
- MTD for VAT and MTD for Income Tax have different requirements. Before choosing software, make sure it supports the specific reporting you need to complete.
- Software only solves part of the problem. Your underlying records, including business expenses and mileage, still need to be accurate and kept up-to-date.
What Is Making Tax Digital Bridging Software?
MTD bridging software is a tool that connects digital records kept somewhere else, often in a spreadsheet, to the HMRC’s systems.
Instead of entering your records into an entirely new accounting platform, you continue keeping them in your existing system. The bridging software then helps submit the required information digitally.
This can be useful for businesses, sole traders, landlords, and accountants who already have a recordkeeping process that works for them but need a way to meet Making Tax digital submission requirements.
Related: How To Keep Track of Business Expenses for Taxes
Bridging Software vs. Accounting Software
Bridging software is generally a lighter solution. It helps connect records you already maintain to the HMRC.
Full accounting software does more. It can help you record income and expenses, manage invoices, categorize transactions, prepare reports, and submit information to the HMRC from one system.
Neither option is necessarily better than the other. It’ll depend on how organized your current records are and how much help you want from the software itself.
Who is Bridging Software For?
Bridging software is a good fit if you already keep good digital records and mainly need a way to submit them to the HMRC.
For example, a VAT-registered business that already maintains its VAT records in spreadsheets may not want to change its entire accounting process just to make an MTD submission.
The same idea can apply to MTD for Income Tax, but the requirements are broader. Affected sole traders and landlords need software that can support digital records of their self-employment or property and income taxes, send quarterly updates, and submit their tax returns.
If your records are scattered, incomplete, or mostly paper-based, bridging software probably won’t be enough. In that case, switching to a fuller accounting or bookkeeping system may be easier than trying to connect a process that’s already difficult to manage.
Top 4 MTD Bridging Software Options
MTD Bridging Software #1: Vital Tax
VitalTax is designed for people who want to keep using Excel while submitting MTD information to the HMRC. It supports MTD for Income Tax and lets users submit quarterly updates from their existing spreadsheets.
Price: First quarterly submission is free, but a paid license is required after that.
MTD Bridging Software #2: My Tax Digital
My Tax Digital offers both bridging and accounting modes for VAT and Income Tax. Its bridging mode can import figures and spreadsheets for submission to the HMRC, while its accounting mode helps users keep digital records of income and expenses on their platform.
Price: Completely free for both MTD VAT and MTD Income Tax
MTD Bridging Software #3: GoFile
GoFile positions itself as MTD software for sole traders, landlords, businesses, and accountants. It offers bridging-style filing for users who want to keep their existing records rather than move everything into their full accounting platform.
Price: Their personal plan is listed at £24.99 + VAT for the first year, then £49.99 + VAT per year per active service.
MTD Briding Software #4: AbraTax
AbraTax offers Excel-based MTD bridging software for businesses that want to keep their current spreadsheet process while submitting VAT Returns digitally. AbraTax also offers MTD Income Tax bridging for self-employed people and landlords using spreadsheets.
Price: VAT pricing starts at £10/month for 1 VAT registration. AbraTax also advertises a free first VAT filing and a free first MTD Income Tax return.
Related: HMRC Mileage Allowance Relief Explained
MTD for VAT vs. MTD for Income Tax
Not all MTD software does the same thing.
MTD for VAT has already been in place for VAT-registered businesses for a while. For those businesses, bridging software is used to submit VAT Return information from spreadsheets or existing digital records to the HMRC.
MTD for Income Tax began on April 6, 2026 for sole traders and landlords with qualifying income above £50,000. That threshold drops to £30,000 from April 2027 and £20,000 from April 2028 (some people may be exempt from MTD for Income Tax - double-check with a tax professional if you’re not sure about your own situation).
For Income Tax, your software needs to submit records, quarterly updates, and the end-of-the-year tax return process. Before choosing bridging software, check whether it supports MTD for VAT or MTD for Income Tax, or both, if both apply to you.
Don’t choose software just because it says it’s MTD compatible. Confirm which part of MTD it supports and whether it’ll meet your requirements.
A VAT-only bridging tool won’t cover what a sole trader or landlord, for instance, would need for MTD for Income Tax.
How TripLog Fits Into Your MTD Process
TripLog isn’t Making Tax Digital bridging software, but it does help with tracking your mileage and expense records digitally.
If you drive for work, those trips need to be tracked accurately and stored digitally. The same goes for receipts, travel costs, and other business expenses.
TripLog helps by automatically tracking your mileage, capturing your expenses, and generating reports you can use for reimbursement or taxes, all while keeping your records digital from the start.
Related: UK Mileage Allowance Guide | What Is the HMRC Mileage Rate?
FAQ
Can I use spreadsheets with Making Tax Digital?
Yes, spreadsheets can still be part of your process, but they generally need to be digitally linked to compatible software that can submit the required information to the HRMC.
Is bridging software required for MTD?
No. You need compatible software, but that could be bridging software or a fuller accounting platform.
Does bridging software work for both VAT and Income Tax?
Not always. Some tools support VAT only, while others support Income Tax or multiple MTD requirements. Make sure you check before choosing one.
Conclusion
MTD bridging software can be a practical option if you already keep organized digital records and don’t want to move all of your records into a new accounting platform.
Just make sure that you choose software that supports MTD’s rules and fits the way you keep your records.
For sole traders and businesses with employees who drive for work, TripLog is a great way to track your mileage and expense records digitally. You can download TripLog on iOS or Android today, or you can schedule a call with our sales team if you’re evaluating for your team.
