What is bridging software?
I've seen this term mentioned alongside Making Tax Digital but don't understand what it actually does.
Asked by Anonymous on 29 July 2025
1 Answer
Bridging software is a tool that takes figures from a source like a spreadsheet and submits them digitally to HMRC in the format MTD requires, without you needing to switch to full accounting software. It essentially acts as the digital link between your existing records and HMRC's system, satisfying the requirement that data isn't manually retyped between different digital tools. It's a popular option for businesses that are comfortable with spreadsheets but still need to meet MTD's digital submission rules for VAT or, in future, Income Tax.