What is bridging software and do you need it
Bridging software is the digital link between a spreadsheet and HMRC's systems, letting you keep recording income and expenses in a spreadsheet while still meeting MTD's digital records requirement. You don't need to abandon spreadsheets. You need a bridge.
What it actually does
Bridging software takes the totals from your spreadsheet and submits them to HMRC in the format MTD requires, without you re-entering anything by hand. Your spreadsheet stays exactly as it is; the bridge handles the connection.
Examples
123 Sheets (£39.50/yr +VAT) , AbraTax (£5/mo +VAT) and GoFile (£49.99/yr +VAT) are current examples. Conditions and exact coverage vary by product. Check the Software Chooser for details before picking one.
Common questions
Do I only need bridging software if I use spreadsheets?
Yes. If you already use a full accounting app that connects to HMRC directly, you don't need a separate bridging product.
Is bridging software expensive?
Not usually. 123 Sheets, for example, is £39.50/yr +VAT, well below most full accounting apps.
Does bridging software replace my spreadsheet?
No. It sits alongside it, taking the totals you already record and submitting them to HMRC in the format MTD requires.
Does bridging software file the Final Declaration too, not just quarterly updates?
That depends on the product. Check each option's own coverage on the Software Chooser before relying on it for your Final Declaration.