Yes, you can keep using Excel or Google Sheets for Making Tax Digital for Income Tax. You need MTD bridging software, which reads the figures from your spreadsheet and sends them to HMRC. We found seven bridging tools that support Income Tax on 5 October 2026, from free to about £50 a year.
What is MTD bridging software?
Bridging software connects records you keep somewhere else, such as a spreadsheet, to HMRC. You carry on recording income and expenses in your spreadsheet. Each quarter, the bridging tool picks up your totals and submits them.
GOV.UK’s software guidance covers this route. It says bridging software can connect to spreadsheets you use for income and expenses and make your submissions to HMRC.
HMRC’s rules for spreadsheets
A spreadsheet is allowed, but it has to follow the digital record rules:
- Record each transaction. Every record needs the amount, the date and a category. You can’t just type in a quarterly total.
- No copy and paste between programs. HMRC wants a digital link from your spreadsheet to the bridging software. Linked cells, formulas, and importing or uploading a file all count. Retyping figures or using copy and paste doesn’t.
- Record things promptly. Create each record as close to the date as you can, and before you send that quarter’s update.
There are three exceptions where a total is allowed. Retailers can record daily gross takings. Joint owners of a let property can record one figure per quarter for their share. And you can adjust a category total for expenses that aren’t allowable.
If your turnover is under £90,000, sole traders only need to mark each transaction as income or an expense. Landlords also mark any restricted finance costs, such as mortgage interest.
MTD bridging software for Income Tax compared
| Software | Price | Works with | Quarterly updates | Tax return |
|---|---|---|---|---|
| My Tax Digital | Free | Excel, OpenDocument and CSV files, using its templates | Yes | Yes |
| 123 Sheets | £19.75 a year plus VAT, per taxpayer | Excel, Google Sheets, Numbers, LibreOffice | Yes | Not confirmed |
| TaxCalc MTD Quarterly Filer | From £24 a year | Excel, Google Sheets and CSV | Yes | No, needs TaxCalc’s separate tax return product |
| Price Bailey Tax Optimiser | Free for the first year, then £30 a year plus VAT | Excel | Yes | Yes |
| Absolute Excel Income Tax Filer | From £40 a tax year plus VAT, for up to 5 people | Excel | Yes | Not confirmed |
| GoFile | £49.99 plus VAT a year | Excel, Google Sheets, Numbers, CSV | Yes | Yes |
| Coconut MTD Bridging | £49.99 a year | Excel, Google Sheets, CSV | Yes | £49.99 add-on |
Six of the seven say they cover self-employment and UK property. We couldn’t confirm which income types Absolute covers. 123 Sheets, My Tax Digital and TaxCalc also list overseas property. Every entry comes from the provider’s own website, checked on 5 October 2026. 123 Sheets shows a half-price offer for the first year.
How to choose
- Check it sends the tax return as well. Quarterly updates are only part of the job. If a bridging tool can’t send your end-of-year tax return, you’ll need a second product for that.
- Check it reads your kind of spreadsheet. Some tools take Excel only. If you use Google Sheets, you may have to download your sheet as an Excel or CSV file first.
- Check your income types. If you have overseas property, fewer tools cover it.
- Add up the real yearly cost. Look for add-ons, VAT, and prices that rise after the first year.
- Check HMRC lists it. Search for the product in HMRC’s software finder before you pay.
Is a spreadsheet still the right choice?
It can be, if your records are simple and your spreadsheet already works. Bear in mind that several full MTD apps are free, do the record keeping for you and connect to your bank. Our free MTD software comparison lists them, and the MTD software picker can suggest a match.
What we left out
Easy MTD says its Income Tax feature isn’t available yet because it is waiting for HMRC approval. We couldn’t confirm that VitalTax supports Income Tax. Neither is in the table.
Sources: each provider link in the table, and GOV.UK’s guides to choosing software and creating digital records. Checked 5 October 2026. MTD HQ is independent, and this page has no affiliate links. It is general information, not tax advice.