One of the most common MTD questions is whether you can carry on using spreadsheets. The short answer: spreadsheets on their own are not enough, because MTD requires you to submit to HMRC through compatible software using digital links — no manual retyping of figures.
What MTD actually requires
- Digital records of income and expenses.
- A digital link between those records and the submission — data must flow without manual re-keying.
- Submission via MTD-compatible software.
Your three options
| Option | How it works | Best for |
|---|---|---|
| Spreadsheet + bridging software | Keep your spreadsheet, add software that digitally links it to HMRC for submission. | People wedded to their existing spreadsheet who are comfortable maintaining the link. |
| Accounting software (e.g. QuickBooks) | Records and submissions in one compliant place; receipts captured via tools like Dext. | Most landlords and sole traders who want it to "just work". |
| Done-for-you service | A firm keeps the records and files for you. | Anyone who'd rather not touch software at all. |
Why most people move off pure spreadsheets
Spreadsheets are flexible and familiar, but they're easy to break, prone to formula errors, and don't submit to HMRC by themselves. Once you add bridging software to stay compliant, you're maintaining two systems. Dedicated software like QuickBooks handles records, categorisation, and submission together — and pairs with receipt-capture tools so your data is ready each quarter.
Our take: if you love your spreadsheet and don't mind the upkeep, bridging software is valid. For most people, compatible software (or having it done for them) is less work and less risk.
Software features and MTD requirements change over time. Check that any tool is on HMRC's list of compatible software before relying on it.
Don't want to learn new software?
MTD Go sets up QuickBooks & Dext for you — and files every quarter so you don't have to.
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