Making Tax Digital with spreadsheets: can I keep using Excel

Last reviewed: 3 June 2026

Quick summary

Spreadsheets may still be usable for MTD, but not as a stand-alone manual process. You need a compliant digital route to submit updates to HMRC, often through bridging software or accountant software.
Check the tax year, income source, records and threshold before relying on a broad rule.
Use the preparation checklist on this page before speaking to an accountant.

Direct answer

What matters in practice

MTD is about digital records and digital submission, not just the final tax return.
A spreadsheet can be part of the record system if the links and submissions are handled properly.
The risk is assuming a familiar spreadsheet automatically meets all future MTD requirements.

Most bad decisions happen because people look for a broad rule and apply it to a narrow situation. The safer approach is to name the income source, the tax year, the gross amount, the costs, the deadline and what HMRC or the platform may already know. That turns a vague worry into a short list of checks.

Examples of how this can play out

You already keep a clean spreadsheet and have simple income. Bridging software may be enough.
You have bank feeds, invoices, stock or property records. Full accounting software may save time.
Your accountant files for you. You still need to know what records they expect and when.

These examples are deliberately practical because they match the questions people actually ask in forums: mixed income, platform statements, software worries, and first-time tax returns. If your facts sit between two examples, make a note of the difference before speaking to an accountant.

Common real-world questions this guide answers

Can I keep using Excel? Possibly, but the spreadsheet needs to form part of a compliant digital workflow. You still need compatible software or an accountant-supported route to send updates.
Can I just send one income total each quarter? Ask your accountant or software provider how the records need to be held, categorised and corrected. A single total may not be enough if the underlying digital records are weak.
What should I test before the first MTD period? Test categories, digital links, bank feeds or exports, who submits the update and how errors will be corrected.
What should I ask before buying software? Ask whether your accountant supports it, whether it handles your income type and whether it replaces or connects to your current spreadsheet.

What to prepare before asking for help

current spreadsheet
bank statements
income categories
expense categories
whether your accountant will submit updates

Good preparation makes advice cheaper and faster. Send totals, not screenshots alone. Keep a separate note of anything you are unsure about so the accountant can focus on judgement rather than basic sorting.

What this guide is focusing on

Use this guide if you are trying to work out whether MTD applies to their exact income mix, software and record-keeping habits. For Making Tax Digital with spreadsheets: can I keep using Excel, focus on how the rule meets the records, thresholds, software and decisions you actually have in front of you.

What figure, record or decision should you pin down?

Pin down qualifying income, tax year, income source, current software, digital records and whether quarterly updates will be handled by the reader or an accountant. That gives an accountant something specific to check and stops the conversation becoming a vague discussion about tax in general.

Records to gather

qualifying income by tax year
income source split between trade and property
current bookkeeping method
software or spreadsheet setup
deadline or HMRC notice

Real examples for this situation

A landlord with one property may only need a clean rent and expense trail, while a landlord with PAYE income needs to know that wages are a separate question.
A sole trader using a spreadsheet may be organised, but still needs to check whether the spreadsheet workflow is compatible with MTD software.
A reader with both trade and property income should separate each source before asking whether thresholds combine.

A common mistake is assuming MTD is only a software purchase rather than a record-keeping and filing workflow. The safest pattern is to write down the figure, source, date and evidence before deciding whether DIY, software or accountant support is enough.

When to speak to an accountant

Speak to an accountant if the answer affects registration, VAT, MTD, company structure, a tax return, a penalty, or whether you should change how records are kept. You do not always need a long engagement. Sometimes the valuable thing is a focused check before you commit to software, filing or a business structure.

For this topic, the most useful accountant will explain the next step in plain English, tell you what records are missing and give you a clear scope before quoting for ongoing work.

Questions to ask an accountant

Can my current spreadsheet work under MTD
Which bridging software do you support
Will you submit quarterly updates for me
What records do I need to send each quarter
What will this add to my annual fee

Mistakes to avoid

Waiting until the first quarterly deadline.
Assuming a spreadsheet alone can submit to HMRC.
Choosing software before asking what your accountant uses.
Not testing categories before the year begins.

How to decide between Excel and software

If you want to keep using Excel, the real question is not whether you like spreadsheets. It is whether the spreadsheet can produce the figures HMRC needs, whether the digital links are acceptable, whether the process can be repeated every quarter and whether your accountant can review it without rebuilding the records. A neat spreadsheet with consistent categories may be a sensible bridge. A spreadsheet that only makes sense to you after three hours of explanation is usually a warning sign.

The practical aim is simple: decide what records prove your position, where the judgement call sits and whether a short accountant conversation would save time before you file.

Key takeaway

Spreadsheets may still be usable for MTD, but not as a stand-alone manual process. You need a compliant digital route to submit updates to HMRC, often through bridging software or accountant software. The opportunity is to get the record-keeping and decision point right early, before a small admin issue becomes a deadline problem.

Official guidance checked on 3 June 2026

Rules, thresholds and deadlines can change. These sources were checked during the current content pass, but should be rechecked before important decisions.

Useful next steps

FAQs

What is the first thing to check

When should I speak to an accountant

Speak to an accountant when the figures affect a deadline, tax bill, VAT, MTD, company structure or anything you are not confident applying to your own facts.

Can I use this as personal tax advice

Use this as general guidance and a preparation checklist. Check official guidance and speak to an accountant before acting on important tax decisions.