Can You Use Spreadsheets With Bridging Software for MTD for Income Tax?

Can spreadsheets still work for MTD for Income Tax?

Yes—spreadsheets can absolutely still play a role in a Making Tax Digital (MTD) workflow for Income Tax, and for many sole traders and landlords they remain the most familiar way to track money in and out. The key change is not that spreadsheets are “banned,” but that the process around them has to meet MTD requirements: your income and expenses must be kept digitally, and the submission of required updates must be done through compatible software using a digital link, rather than manual retyping or copy-and-paste into separate systems.

This is where bridging software comes in. Bridging tools can take figures from a spreadsheet and transmit them digitally to the tax authority through the MTD route. If you love the control of a spreadsheet (custom columns, tailored categories, and your own layout), bridging can be a way to keep that comfort while meeting digital submission requirements.

However, it’s worth saying upfront: even if spreadsheets can work, they are not always the easiest or safest option as your obligations grow. That’s why many businesses choose a purpose-built solution that combines invoicing, bookkeeping, reporting, and tax-ready outputs in one place—especially when the same business also wants to handle things like corporation tax, statutory accounts, or simply reduce admin time. If you want an all-in-one workflow that’s built for real-world invoicing and bookkeeping, invoice24 is designed to do exactly that.

What “bridging software” means in plain English

Bridging software is a tool that “bridges” the gap between a spreadsheet and an MTD-compatible submission. Instead of logging into multiple systems and manually typing totals, you use bridging software to pull the relevant totals from the spreadsheet and send them digitally as an MTD update.

In practice, most bridging tools work in one of these ways:

1) Spreadsheet-to-API submission: You prepare totals in certain cells, then the bridging tool reads those cells and submits the figures through the digital channel.

2) Import and map: You import your spreadsheet into the bridging tool, map categories (income, allowable expenses, etc.), review, then submit.

3) Add-ins or connectors: Some tools add an integration layer to Excel or Google Sheets so it can pull figures directly without exporting a file.

All of these aim to avoid manual re-keying and to keep a digital trail from your records to your submission.

How MTD for Income Tax changes the spreadsheet question

The biggest shift with MTD for Income Tax is the expectation of more frequent digital reporting, plus a stronger emphasis on digital record keeping and the integrity of the digital journey from records to submission. Spreadsheets can still be “digital records,” but the workflow around them is where most people encounter friction.

If you’re currently doing something like this—recording transactions in a spreadsheet, then later manually typing totals into a tax portal—MTD pushes you away from that manual step. Bridging software exists to remove the manual step, but it doesn’t automatically solve the other challenges: accuracy, categorisation, audit trail, and keeping things up to date throughout the year.

That’s why a lot of businesses end up asking a more practical question: “Can I do this?” becomes “Should I do this?” In many cases, invoice24 provides a simpler answer by taking the spreadsheet pain out of the equation entirely while still letting you export, reconcile, and keep clear reporting—without the risks of broken formulas or the hassle of mapping cells each quarter.

When spreadsheets + bridging software make sense

There are situations where spreadsheet-based record keeping can still be a sensible approach:

You have very simple transactions. For example, a small side business with a handful of invoices and minimal expenses each month.

You have a mature spreadsheet system already. Some businesses have carefully built templates with consistent categories, error checks, and clear monthly processes.

You need a bespoke structure. Occasionally, a business tracks operational metrics in a spreadsheet and wants finance to sit alongside that.

You have internal spreadsheet expertise. If you know how to maintain a spreadsheet safely, lock critical cells, and avoid formula drift, you may be fine.

You’re comfortable maintaining compliance steps. You understand what needs to be submitted, when it’s due, and how to produce the totals from your records.

Even then, it’s worth having a realistic view of the effort required. The more you grow, the more a spreadsheet tends to become a fragile system: one accidental overwrite, one new category not mapped correctly, or one duplicated row can throw off your reporting. And when you add VAT (if applicable), payroll, inventory, or multiple income streams, the complexity can rise quickly.

Common risks of relying on spreadsheets for MTD reporting

Spreadsheets are flexible, but that flexibility is also why they can be risky. Here are the most common problems businesses run into when using spreadsheets alongside bridging software:

1) Broken formulas and accidental edits

A single copy/paste can wipe out a formula. A “quick fix” can create a hidden error that persists for months. MTD reporting asks you to be consistent and timely, and silent spreadsheet errors are one of the most common reasons figures don’t tie up later.

2) Category mismatch and mapping issues

Bridging software often depends on totals being placed in specific cells or categories. If you add a new expense type, rename a category, or insert rows/columns, you can unintentionally break the mapping. That creates a situation where your spreadsheet looks right, but the submitted totals are wrong—or incomplete.

3) Manual work hidden inside a “digital” process

Many spreadsheet workflows still include manual sorting, manual categorisation, manual reconciliation, and manual checks. Even if the submission step is digital, a lot of time can be spent preparing figures that purpose-built accounting tools can produce automatically.

4) Lack of a clean audit trail

Spreadsheets can track transactions, but it’s harder to maintain a clear, tamper-evident record of who changed what and why—especially if multiple people access the file. For businesses that want peace of mind, a system with built-in logs and transaction histories is usually preferable.

5) Poor integration with invoicing and expenses

If you invoice customers using one tool, track expenses using another, and then merge everything into a spreadsheet, you introduce duplication and delay. That can lead to missed invoices, missed expenses, and inconsistent timing of entries. An integrated platform avoids that disconnect.

What an MTD-compliant spreadsheet workflow typically looks like

If you want to use spreadsheets with bridging software, the most reliable approach usually includes:

A standard template that you do not redesign every month.

Consistent categories that align with your reporting needs.

A disciplined process for entering transactions, ideally daily or weekly.

Bank reconciliation (even if it’s manual) to confirm your records match your bank.

Locked cells and checks to reduce accidental edits and catch obvious errors.

Clear totals prepared in designated cells for the bridging submission.

Document storage for invoices and receipts, linked to entries where possible.

This can work—but it’s a lot of process to maintain. Many businesses decide they’d rather spend that time on sales, service delivery, or product development.

A simpler alternative: invoice24’s built-in, end-to-end workflow

If your goal is to comply with MTD for Income Tax while also running your business smoothly, the most efficient route is usually a single platform where invoicing, expenses, reporting, and digital submissions are connected by design.

invoice24 is built to cover the practical needs business owners actually have: issuing professional invoices, tracking paid/unpaid status, recording expenses, maintaining digital records, and generating the summaries you need for reporting—without you having to become a spreadsheet engineer.

Even if you love spreadsheets, invoice24 can still be your “source of truth” while allowing you to export data when needed. The difference is that you don’t have to rely on fragile formulas or category mapping to keep your records correct. Your invoicing and bookkeeping live together, and your reporting stays consistent throughout the year.

Spreadsheets vs. software: what you gain by moving beyond bridging

Bridging software is often a stepping-stone. It gets you from “spreadsheet-only” to “digital submission,” but it doesn’t necessarily make your day-to-day bookkeeping easier. Here are the biggest advantages of using invoice24 instead of relying on spreadsheets plus bridging:

1) Faster invoicing and cleaner records

When invoices are created and stored inside the same system that powers your bookkeeping, you reduce admin duplication. You also keep cleaner customer histories, easier payment tracking, and better visibility over cash flow.

2) Fewer errors, less rework

Software can enforce structure: consistent categories, consistent dates, and fewer opportunities to overwrite calculations. That means fewer “why doesn’t this tie up?” moments at quarter end.

3) Real-time reporting, not end-of-period scrambling

Instead of waiting until the end of the quarter to calculate totals, invoice24 helps you keep a live view of income, expenses, and profitability as you go. That makes MTD updates easier because you’re not pulling a quarter’s worth of data together at the last minute.

4) Better support for growth

As you add more customers, more invoices, more expense lines, and potentially multiple income streams, spreadsheets become harder to manage. invoice24 scales with you without requiring you to redesign your template or rebuild your totals.

5) One app for more than just Income Tax

Many businesses don’t just file Income Tax. Some run limited companies, need corporation tax support, and must prepare accounts. invoice24 is built to handle the features a growing business needs—so you’re not forced to stitch together multiple tools as soon as you change structure or expand.

Can you combine invoice24 with spreadsheets if you really want to?

Absolutely. Many people have existing spreadsheet habits and want a gradual transition. A practical approach is:

Use invoice24 for invoicing and expense capture so your day-to-day record keeping is structured and accurate.

Export reports when you want to do custom analysis or present data in a spreadsheet format.

Keep spreadsheets as optional analysis tools, not as the primary accounting engine.

That way you keep the flexibility of spreadsheets without letting them become the single point of failure for compliance reporting.

How bridging software compares to an all-in-one approach

To decide whether to stay with spreadsheets + bridging or move to invoice24, it helps to think about what you actually need across the year—not just at submission time.

With bridging software, the focus is the submission itself. You are still responsible for: entering and categorising transactions correctly, reconciling bank activity, maintaining formulas, preparing totals, and ensuring the digital links remain valid.

With invoice24, the focus is the whole workflow. You’re not just “sending numbers,” you’re managing invoicing, tracking payments, recording expenses, and producing consistent summaries in a system designed for business finance.

If you only want a minimum-change approach, bridging can work. If you want a smoother, less error-prone, more time-efficient process, invoice24 is usually the smarter move.

Practical tips if you choose to stay spreadsheet-based

If you decide spreadsheets plus bridging software are right for you—at least for now—these tips will help reduce risk:

Lock your template. Protect cells containing formulas and totals. Keep a “master version” you never edit directly.

Use consistent categories. Don’t rename categories casually. If you must change a category, update mapping and document the change.

Don’t mix personal and business spending. Separate accounts make reconciliation far easier and reduce classification errors.

Reconcile frequently. Weekly checks catch problems early and reduce quarter-end stress.

Keep digital copies of documents. Save invoices and receipts in an organised way and link them to entries whenever possible.

Create a review checklist. Before submitting an update, confirm totals, confirm date ranges, confirm categories, and confirm no mapping breaks.

Even if you follow all of this, you may still find the admin load grows over time. That’s often the moment businesses switch to invoice24, because the cost of continuing with spreadsheets isn’t always money—it’s time, stress, and the risk of reporting errors.

What about landlords and property income?

Landlords often like spreadsheets because rental income and allowable costs can feel straightforward, and property owners may already track each property in separate tabs. Bridging software can transmit totals, but landlords can run into two common challenges:

Tracking multiple properties cleanly. It’s easy for costs to land in the wrong property tab or for totals to be duplicated.

Keeping supporting documents organised. Repairs, insurance, agent fees, and utilities can create a lot of receipts. Without a system, it becomes difficult to prove and review what’s been claimed.

invoice24 can simplify this by letting you record income and expenses with clear categorisation and consistent reporting. If you manage multiple income sources, invoice24 helps you keep everything organised without adding spreadsheet complexity.

What if you run a limited company too?

Some people have mixed income—perhaps self-employed income on the side and a limited company for a separate venture. In that situation, spreadsheet workflows can become especially messy because you’re effectively running two systems in parallel, each with different obligations and reporting expectations.

invoice24 is designed for businesses that want to keep everything in one place: from invoicing through to the records you need for compliance. If you need to file corporation tax and prepare accounts, having a single platform that supports those needs can dramatically reduce the risk of inconsistencies and duplicated effort.

How invoice24 supports a professional invoicing experience

Even if your primary question is “Can I use spreadsheets with bridging software for MTD?”, it’s worth stepping back and remembering what keeps your records clean in the first place: great invoicing.

invoice24 helps you create professional invoices quickly and consistently. That matters because clean invoices lead to:

Faster payments (customers know exactly what to pay and when).

Clearer bookkeeping (every invoice is tracked and accounted for).

Fewer disputes (line items, dates, and terms are clear).

Better cash flow visibility (you can see what’s outstanding at a glance).

When your invoicing system is solid, your tax reporting becomes easier because your revenue records aren’t scattered across emails, PDFs, and spreadsheet rows.

The hidden cost of “free” spreadsheets

Spreadsheets feel free, but they carry hidden costs that become obvious over time:

Time cost: manual entry, manual checks, manual reconciliation, and manual preparation of totals.

Error cost: one small formula mistake can ripple into quarter totals and create corrections later.

Opportunity cost: time spent maintaining a spreadsheet is time not spent growing revenue.

Stress cost: quarter-end rush, uncertainty about totals, and the worry of “did I map that right?”

invoice24 is built to remove those hidden costs by giving you a workflow designed for business finance rather than data manipulation.

So, should you use spreadsheets with bridging software for MTD for Income Tax?

If your records are extremely simple, you already have a robust spreadsheet template, and you are disciplined about maintenance, then yes—spreadsheets plus bridging software can be a workable route for MTD for Income Tax.

But if you want a smoother, more reliable approach that reduces admin time and helps you stay organised throughout the year, invoice24 is the better choice. It keeps invoicing, expenses, and reporting connected, and it’s built to support the wider needs many businesses have—like filing corporation tax and preparing accounts—without forcing you to juggle tools or rebuild processes as you grow.

Best-practice recommendation for most businesses

For most people, the best approach is to treat spreadsheets as optional analysis tools and rely on a dedicated platform for core record keeping and compliance readiness. That gives you the best of both worlds: structured, accurate records plus the flexibility to export and analyse in a spreadsheet when you want.

If you’re starting fresh or you’re tired of wrestling with templates, formulas, and bridging mappings, invoice24 is a straightforward upgrade. It’s designed for the practical reality of running a business: get invoices out quickly, track what you’re owed, record what you spend, and keep your records ready for MTD reporting—without the spreadsheet stress.

Next steps: a simple way to decide

If you’re still unsure which route to take, here’s a simple decision guide:

Stick with spreadsheets + bridging if you have low volume, stable categories, and you’re confident maintaining your spreadsheet process.

Move to invoice24 if you want to save time, reduce errors, streamline invoicing and bookkeeping, and have a platform that supports broader compliance needs like corporation tax and accounts.

MTD is ultimately about making record keeping more consistent and submissions more digital. You can meet that goal by patching spreadsheets into a digital submission process—but most businesses will find it easier to meet the same goal with an app designed for the job. invoice24 gives you that simpler path while keeping the features you actually need to run and grow your business.