Making Tax Digital for Income Tax: keeping things simple with bridging software

Making Tax Digital for Income Tax (MTD IT) doesn’t mean giving up your spreadsheets. Here we explain how bridging software works to keep you compliant. It also shows how TaxNav connects your existing records to HMRC, keeping the process simple, affordable and easy to fit around your working life.

Making Tax Digital for Income Tax (MTD IT) is changing how many self-employed people and those with property income report to HMRC. A common question we hear is: do I need to change how I keep my records?

If you currently use spreadsheets such as Excel or Google Sheets, the good news is that you don’t have to abandon what already works. However, you do need to understand how to stay MTD IT compliant. That’s where bridging software comes in.

Can you still use Excel and other spreadsheets for MTD IT?

Yes, you can. HMRC allows spreadsheets for digital record-keeping under MTD IT, including Excel and Google Sheets. However, spreadsheets on their own cannot submit your information to HMRC, as they do not have the required connection to send data directly.

This means that while your spreadsheet can still hold your records, you will need MTD IT-compatible software to complete your submission to the HMRC portal.

What is MTD IT bridging software?

Bridging software acts as the link between your spreadsheet and HMRC. It takes the figures you have already recorded and submits them digitally, without the need to re-enter data.

This is important because MTD IT requires a digital link. In simple terms, your data must move electronically from your records through to HMRC. Copying and pasting figures or typing them in manually is not allowed, but importing or connecting through bridging software is.

How bridging software helps keep compliance simple

For those who prefer spreadsheets, bridging software offers a practical route to compliance without adding unnecessary admin. You can continue using your existing spreadsheet while meeting HMRC’s MTD IT requirements for the quarterly (year-to-date) updates and final annual submission.

TaxNav offers several ways to comply with MTD IT, depending on how you prefer to keep your records. You can:

  1. Record your income and expenses directly in the software using your phone or computer
  2. Continue using your existing Excel spreadsheets and submit your figures through TaxNav’s bridging software.
  3. Use one of TaxNav’s own spreadsheets if you’d prefer a simple starting point.

With TaxNav, you don’t have to abandon your familiar way of working for MTD IT.

Why are many people looking for a simpler option?

For many self-employed individuals and people with property income, the concern isn’t just compliance, it’s the extra admin surrounding MTD IT. Quarterly updates can sound daunting, particularly if it feels like you need to learn new systems or change how you work.

In practice, it doesn’t have to feel that way. With the right setup, MTD IT can fit around your existing processes, especially if you keep your records up to date as you go.

Where TaxNav fits in

TaxNav has been designed specifically for people with straightforward tax affairs who want to keep things simple. It works alongside spreadsheets, so you don’t need to start again or move to complex bookkeeping software.

Instead, it helps you connect your spreadsheet to HMRC, submit your quarterly updates, keep track of your figures across the year, and complete your final declaration without unnecessary hassle.

HMRC-recognised and built on real experience

TaxNav is HMRC-recognised software, meaning it meets the required standards for digital links and submissions and is listed on HMRC’s official software register. It has also been used throughout the HMRC pilot for the 2025/26 tax year, with hundreds of TaxNav users already smoothly navigating the MTD IT process.

That experience has helped shape a product focused on what people actually need: something clear, practical and easy to use.

A simple way to stay compliant without changing everything

If you are comfortable using spreadsheets, you don’t need to move to expensive or complicated bookkeeping software. Bridging software provides a straightforward way to stay compliant while keeping your existing approach.

With TaxNav, that process is designed to feel manageable from the start. We’re also affordable, with an annual subscription costing £60 + VAT and a pay-as-you-go monthly option at £6 + VAT.

Try TaxNav for yourself

If you’re preparing for MTD IT and want to keep things simple, you can take advantage of TaxNav’s 30-day free trial.

Before getting started, you will need to sign up for MTD IT with HMRC. Once that’s done, you can connect your spreadsheet and begin using TaxNav straight away.

With TaxNav, there’s no need for unnecessary hassle or major changes, just a simple way to stay on top of your MTD IT requirements. Find out more at TaxNav.digital

‍