Can I use Excel for MTD for Income Tax? Yes, here is how

Why Excel still works under Making Tax Digital

A common worry about MTD for Income Tax is that you will be forced to give up your spreadsheet and buy full accounting software. You will not. HMRC explicitly allows you to keep records in a spreadsheet, including Excel, as long as the figures reach HMRC through compatible software using a digital link. The software that provides that link is called bridging software.

For a deeper look at the record-keeping rules, seewhether you can still use spreadsheets for MTD. If you are choosing between software categories, start with the broaderMTD bridging software guide.

How MTD bridging software for Excel works

There are three steps, and your Excel file stays at the centre of them:

1. Your spreadsheet. Keep recording income and expenses in the Excel workbook you already use. No template, no reformatting.
2. The bridge. Upload the file to aligned.tax. Smart Map reads your columns and lines them up with the right HMRC boxes. You review and adjust before anything is sent.
3. HMRC. aligned.tax submits your quarterly update to HMRC through the MTD API, and you get a confirmation. The mapping saves, so next quarter takes seconds.

What HMRC requires from your spreadsheet

To stay compliant when you keep using Excel, two things matter:

• Digital records. Each income and expense item is recorded digitally in your spreadsheet, with the date, amount and category.
• A digital link. The figures must pass from your spreadsheet to HMRC without being re-typed by hand. Uploading your file to bridging software preserves that digital link.

That is the whole job of bridging software: keep the link between your spreadsheet and HMRC digital, so you never re-key a figure.

Excel, Google Sheets, Numbers or LibreOffice

aligned.tax needs an Excel (.xlsx) file, but any spreadsheet app can produce one in a couple of clicks. In Google Sheets, use File > Download > Microsoft Excel (.xlsx). In Apple Numbers, File > Export To > Excel. In LibreOffice Calc, Save As > .xlsx. Then upload as normal.

MTD bridging software for Excel: common questions

Can I use Excel for MTD for Income Tax?

Yes. HMRC accepts Excel and other spreadsheets as digital records, as long as the spreadsheet is digitally linked to bridging software that submits your figures through the MTD API. You do not have to move into a full accounting package to comply.

What is MTD bridging software for Excel?

Bridging software takes the figures you already keep in an Excel spreadsheet and submits them to HMRC through the Making Tax Digital API, using a digital link. It is the bridge between your spreadsheet and HMRC, so you can keep working in Excel.

Does my Excel spreadsheet need to be in a special format?

No. aligned.tax reads whatever layout you already use. Smart Map looks at your column headers and structure and lines them up with the right HMRC boxes, so you do not have to reformat your workbook or copy figures into a template.

Can I use Google Sheets or Apple Numbers instead of Excel?

Yes. Export to Excel format first. In Google Sheets, use File > Download > Microsoft Excel (.xlsx); in Apple Numbers, File > Export To > Excel; in LibreOffice Calc, Save As > .xlsx. Then upload the .xlsx file.

Is using Excel with bridging software a permanent option?

Yes. Using a spreadsheet with bridging software is a valid, ongoing way to meet Making Tax Digital, not a temporary workaround, and there is no time limit on it.

Is there free MTD bridging software for Excel?

Yes. aligned.tax is free for individuals: upload your Excel spreadsheet and file your own quarterly updates to HMRC at no cost, always, with no credit card required. Accountants and bookkeepers get their first three clients free, then simple per-client practice pricing.