What Is MTD Bridging Software?

If you've heard the term "MTD bridging software" and aren't sure what it means, you're not alone. With Making Tax Digital for Income Tax now live as of April 2026, thousands of UK sole traders and landlords are trying to work out what software they actually need. This page explains everything you need to know.

MTD Bridging Software Explained

MTD bridging software is a type of application that connects your existing record-keeping tools - such as Excel spreadsheets, Google Sheets, or CSV files - to HMRC's Making Tax Digital system. Instead of forcing you to switch to entirely new accounting software, bridging software acts as a bridge between the way you already work and the digital format HMRC requires.

Under Making Tax Digital, HMRC requires that your income and expense data is submitted digitally every quarter. The data must travel via software to HMRC's API - you can't simply type numbers into the HMRC website. Bridging software reads your spreadsheet data and submits it in the correct format, so you don't need to change how you keep your records.

How Does HMRC Bridging Software Work?

The process is straightforward. Here's how it typically works:

1. You keep your records in a spreadsheet - tracking your income, expenses, and dates in whatever format works for you.
2. You upload or connect your spreadsheet to the bridging software. The software reads your data and maps it to the fields HMRC expects.
3. The software submits to HMRC via their official Making Tax Digital API. You receive a confirmation reference number.

That's it. Your spreadsheet stays exactly as it is. The bridging software handles the translation and submission.

Digital Links: The Rule That Makes Bridging Software Necessary

The reason you can't just type your totals into a website comes down to HMRC's "digital links" rule. Once your figures are in digital form, they must move between programs through digital links - electronic transfers with no retyping and no copy-and-pasting of individual figures. A formula that pulls totals from one sheet to another is a digital link. So is uploading your spreadsheet file into bridging software, or the software submitting those figures to HMRC's API.

This is exactly what qwartly does: it reads your Excel, CSV, or ODS file directly and passes the figures to HMRC without anything being rekeyed, so your spreadsheet-based records stay compliant. For a deeper look at the rules, see our complete guide to Making Tax Digital for Income Tax.

Who Needs MTD Bridging Software?

MTD bridging software is ideal for anyone who already tracks their income and expenses in a spreadsheet and doesn't want to switch to dedicated accounting software. This includes:

• Sole traders - freelancers, contractors, and self-employed professionals with self-employment income over £50,000 (from April 2026), £30,000 (from April 2027), or £20,000 (from April 2028).
• Landlords - property owners with rental income above the thresholds who track their rental income and property expenses in spreadsheets.
• Anyone who prefers spreadsheets - if you've built a tracking system that works for you, bridging software lets you keep it.

MTD Bridging Software vs Full Accounting Software

Full MTD-compatible accounting software (like Xero, QuickBooks, or FreeAgent) replaces your entire bookkeeping workflow. You enter transactions into their system, and they handle everything including the HMRC submission. This works well for people who want an all-in-one solution, but it means learning a new system, potentially re-entering years of data, and paying monthly subscription fees that typically range from £12 to £30 per month.

MTD bridging software takes a different approach. It doesn't replace your workflow - it extends it. You continue using your spreadsheet, and the bridging software handles only the HMRC submission part. This is simpler, cheaper, and means zero disruption to how you work.

Is Bridging Software HMRC Recognised?

HMRC maintains a list of compatible software for Making Tax Digital. To be on this list, software must connect to HMRC's official MTD API and meet their technical requirements. qwartly is built to HMRC's MTD API specification and will be listed on GOV.UK's software choices page before launch.

Why Choose qwartly?

qwartly is MTD bridging software designed specifically for sole traders and landlords who want to keep their spreadsheets. It supports Excel, CSV, and ODS files, costs just £49 per year (no monthly fees), and connects directly to HMRC's Making Tax Digital API. Upload your spreadsheet, map your columns once, and submit - it takes minutes, not hours.

Related Guides

• MTD for sole traders - deadlines, requirements, and how to prepare as a self-employed individual.
• MTD for landlords - Making Tax Digital requirements for UK property income.
• MTD bridging software pricing - see how qwartly compares to other MTD-compatible software.