Can you keep using a spreadsheet under Making Tax Digital?
Does MTD apply to you yet?Yes, with two catches: the spreadsheet can't talk to HMRC by itself, and copy-and-paste is off the table. gov.uk explicitly recognises records "held in spreadsheets", so nobody has to abandon a working system on day one. But the submissions have to come from compatible software, connected to your spreadsheet by a digital link, not by retyping.
A spreadsheet counts as digital records
MTD's record rule is about content and format, not brand of software. Every transaction needs three things recorded digitally: the amount, the date the money came in or the expense was incurred, and the category it belongs to. A spreadsheet row can carry all three, and gov.uk's own guidance treats a spreadsheet as record-keeping software. HMRC also says to create each record as close to the transaction as possible, and it must exist by that quarter's update deadline at the latest.
The first catch: it can't submit
Quarterly updates and the year-end return are sent from software, not typed into an HMRC portal. A spreadsheet has no way to do that, which is where bridging software comes in: a product that, in gov.uk's words, connects "to your existing records (also known as bridging software) such as those held in spreadsheets" and makes the submissions. So the spreadsheet route is really a two-product setup: your spreadsheet keeps the records, a bridging product sends them, and the two need to work together.
The second catch: the no-retyping rule
The two products must be digitally linked. HMRC's guidance is blunt about what that rules out: once a record has been sent in a quarterly update, "you must not manually move the record", which includes writing it out in another cell, cut-and-paste, and copy-and-paste. The permitted links are technical ones: linked cells in spreadsheets, CSV or XML import and export, automated transfer, or an API connection. Corrections happen in the spreadsheet first, then flow through the link.
This is the part that surprises people. The spreadsheet is legal; the Friday-night ritual of copying its totals into something else is not.
The honest trade-off
The spreadsheet route is real and it works. What it costs is discipline: you type every transaction yourself, near the day it happens, keep receipts separately, keep the digital links intact through four updates a year, and run two products. What it saves is familiarity, and sometimes money.
The app route collapses those steps: snap the receipt and the record creates itself, categorised, with the evidence attached, in software that submits. Which trade suits you depends on how many transactions you have and what your hours are worth. Both routes are compliant done properly; only one of them happens by itself.
Quick answers
Is Excel allowed under MTD?
As the place records live, yes. It needs a digitally linked bridging product to make the actual submissions.
Can I type my figures straight into HMRC's website?
No. Under MTD the updates and the return come from compatible software. There's no manual portal route.
Can I copy my spreadsheet numbers into the bridging tool by hand?
No. The link must be digital: linked cells, CSV or XML import, automated transfer or API. Once a record has been sent, manual moves are against the rules.
What are the three things every record needs?
Amount, date, category. That's the whole digital record, whether it's a spreadsheet row or a snapped receipt in an app.
The version where records make themselves
Snap the receipt, and SoleTax creates the digital record: amount, date, HMRC category, evidence attached. No linking rules to police, because it's one place. 14 days free, no card needed.
Join the betaSources: gov.uk, find software that's compatible with Making Tax Digital for Income Tax (updated 8 May 2026) and use Making Tax Digital for Income Tax, create digital records (updated 2 June 2026). Checked on 8 July 2026.