When Bridging Software Makes Sense
Bridging software suits businesses and landlords who already manage VAT or income records in spreadsheets, do not want a monthly bookkeeping subscription, or rely on custom Excel models that a full package cannot replicate.
The Digital Links Rule You Must Follow
Bridging software is only compliant if data flows from your source records to the bridging tool through digital links — formulas, cell references, CSV imports, or API calls. Manually retyping figures from one sheet to another breaks the rule and risks a compliance penalty.
Bridging Software for VAT
For MTD for VAT, bridging software reads your nine VAT return boxes from a designated cell range and submits them to HMRC. Examples on HMRC's recognised list include Absolute Excel VAT Filer, VitalTax, 123 Sheets, Tax Optimiser, and several free or low-cost tiers.
Bridging Software for MTD for Income Tax
MTD for Income Tax bridging tools take quarterly summaries from your spreadsheet and submit them to HMRC. Several developers — including 123 Sheets and others — appear on HMRC's MTD ITSA recognised software list. Expect more entries as the April 2026 mandation date approaches.
How to Choose Bridging Software
- Confirm it appears on HMRC's recognised software list for the tax you need (VAT or Income Tax).
- Check whether it is one-off, per-submission, or subscription pricing.
- Make sure it works with your spreadsheet platform (Excel desktop, Microsoft 365, Google Sheets).
- Verify it supports your VAT scheme or income types (rental, self-employment).
- Look for UK telephone or email support around the deadline window.