Can you still use Excel? The truth about MTD bridging software

If your spreadsheet already helps you understand the business, you may not want to replace it just because Making Tax Digital has arrived.

That is reasonable. Excel can be flexible and familiar, and a well-kept workbook often contains exactly the information you want to see. You can continue using spreadsheets as part of a suitable MTD setup.

The extra piece is the connection between those records and software capable of making the required HMRC submissions. That is where bridging software comes in.

What does MTD bridging software do?

Bridging software connects existing digital records to the submission process. It may read a workbook, import a CSV or receive information through another supported connection.

HMRC expressly recognises this type of product in its Income Tax software guidance. Some products support quarterly updates and the annual return; others form part of a wider software arrangement.

The word “bridging” does not, by itself, tell you which tasks are included. Check the product’s supported income sources, file formats, reporting periods and year-end coverage.

A product that works for MTD for VAT is not automatically suitable for MTD for Income Tax. They involve different submissions and different information.

Why a spreadsheet alone is not the whole solution

For a mandated Income Tax year, you need to keep the required digital records, send the relevant quarterly updates and complete the annual tax-return process using suitable software. The 2026 regulations set out the obligations.

A workbook can hold records and perform calculations, but ordinary Excel does not automatically provide the complete HMRC submission connection.

There is also a difference between possessing a spreadsheet and maintaining reliable records in it. A workbook that contains only four manually typed totals may not capture the underlying information required for your circumstances.

Start with the records, then check how the bridge uses them. That is more useful than asking whether a file extension is “MTD compliant”.

What makes a bridge easy to use?

Different products take different approaches. Some expect a fixed template. Others allow you to map your existing columns to the fields they need. A fixed format can be perfectly workable, but it may require changes to your routine.

Useful features to assess include:

• A clear preview of the imported rows.
• Support for the date and amount formats you use.
• A way to distinguish receipts, payments and balances.
• Identification of missing information and possible duplicates.
• A reviewable summary for the correct business and period.
• A clear acknowledgement when HMRC accepts the submission.

These are buying criteria, rather than a claim that older or competing products lack them. Test the specific tool with your own records.

The Avona.app import approach

Avona.app’s bridging page describes support for Excel workbooks, CSV files and digital PDF bank statements. It also describes column mapping and Avona AI checks intended to flag issues for review.

The purpose is to help you use records you already have, instead of retyping transactions into a new cashbook. Avona AI can help organise the information, while the review step lets you confirm that it has been understood correctly.

Do not treat automated checking as a guarantee that every formula, omission or tax issue has been found. A plausible number can still be wrong. The original statement, invoice or workbook remains important evidence.

Worked example: importing a landlord’s workbook

Ruth keeps a workbook with columns headed “Date”, “Property”, “Details”, “Money in”, “Money out” and “Balance”. She wants to continue using it for her UK rental business.

Here is how the mapping should be understood:

Ruth first chooses the relevant worksheet and confirms the rows included. She checks that the software has not imported a subtotal or a repeated statement header as a transaction.

Next, she compares the imported receipts and payments with the source workbook. If the sheet shows £9,600 of rent but the preview shows £19,200, she investigates before submitting. Perhaps a total row was imported alongside its transactions, or a file was uploaded twice.

Finally, she reviews the reporting categories and the cumulative update. Her spreadsheet remains useful, but she has checked the point where its data enters the submission workflow.

Can you upload a PDF bank statement instead?

A digital PDF statement can be a source for creating structured transaction records. Extraction software reads the transaction table and turns it into information the bookkeeping system can use.

That is a different process from reading spreadsheet cells. Dates, signs, page breaks and running balances can be misinterpreted, especially in scanned or unusual statements. Review the result against the source.

A PDF also shows bank movements rather than every fact needed for tax. It may omit cash transactions or show rent net of an agent’s fee. A mortgage payment may combine capital and interest.

HMRC’s digital record guidance explains the records required. Uploading a statement is a way to help create those records, not a substitute for checking that they are complete.

Keep your spreadsheet and imports consistent

Choose how you will prevent the same transaction arriving twice. If a bank feed already imports an account, uploading a statement covering the same dates can create overlap.

Keep a record of which periods you imported, compare totals and resolve possible duplicates before approval. Where a payment legitimately appears more than once, such as two identical monthly charges on the same day, use the source evidence rather than deleting it solely because the values match.

If you correct the workbook after importing, decide whether to update the bookkeeping record or re-import through the supported process. Two versions that disagree will make the next quarter harder.

These are small habits, but they prevent a flexible workflow from becoming an uncertain one.

Check the annual return before choosing a bridge

Quarterly updates do not contain your entire personal tax position. Other taxable income and gains, adjustments and claims may need to be dealt with before completing the annual return.

For 2026/27, that return is due by 31 January 2028. HMRC explains how to complete and submit it through software.

Ask who will handle that stage and whether the software supports every relevant part of your circumstances. This is particularly useful if you have employment income, overseas income, capital gains or an accountant using another product.

Choose the level of support you need

Avona.app offers the self-service route for £15/month. You bring in the records, review the information and manage the relevant submissions.

If you want human support, Avona Concierge is managed by chartered accountants, with retainers starting at £60/month + VAT for the retainer, plus £15/month software. That is £75/month plus VAT on the retainer at the entry level. Ask specifically whether reviewing your workbook or formulas is included in the agreed scope.

A spreadsheet you understand can remain a useful part of your bookkeeping. Choose a bridge that makes the transfer clear, gives you a meaningful review step and fits the rest of your tax-return process.

Avona’s UK and foreign property and sole-trader quarterly support is ready; additional annual-return capabilities are in development. Check the Final Declaration feature matrix before relying on Avona for every section of your annual return.