Short answer: yes. You can keep your records in a spreadsheet. You need one extra thing to send them to HMRC. It is called bridging software.
What HMRC says
HMRC describes two kinds of software. The first kind makes your records for you. Think of a bookkeeping app with a bank feed. The second kind, in HMRC's own words, "will connect to existing records kept in spreadsheets". That second kind is bridging software.
So the rule is simple:
- A spreadsheet on its own cannot send anything to HMRC.
- A spreadsheet plus bridging software is fully allowed.
One catch
The link between your spreadsheet and the bridging software must be digital. That means a file export, a linked cell, or a direct connection. You must not retype the totals by hand. HMRC calls this a "digital link".
Think of it like
A travel adaptor. Your spreadsheet is the plug. HMRC is the foreign socket. Bridging software sits in between and makes them fit.
What your spreadsheet must hold
For every sale and every cost: the amount, the date, and a category. If your takings are under £90,000 a year, HMRC lets you record just "income" or "expense" for each line.
Where to find bridging software
HMRC keeps a list. Search gov.uk for "find software compatible with Making Tax Digital for Income Tax" and tick "bridging". Some products are free for simple affairs, but they may cap the number of transactions. Check on the day, because the list changes.
Sources
- gov.uk: Choose the right software for Making Tax Digital for Income Tax
- gov.uk: Use Making Tax Digital for Income Tax: create digital records
- The Income Tax (Digital Obligations) Regulations 2026, SI 2026/336
We make no claims about your situation. Plain Terms puts the official rules into plain English. This is not tax advice. Confirm it on gov.uk and, where it matters, with your own accountant.
Want the whole thing in one evening, with the spreadsheet built for exactly this? The Making Tax Digital Money Kit is £29.