The Short Answer
Yes, you can keep using Excel. You don't need to switch to accounting software. You need HMRC-recognised software, like Otis, to send the figures from your spreadsheet to HMRC each quarter. Your spreadsheet stays exactly as it is.
What HMRC Actually Requires
Since 6 April 2026, landlords and self-employed people with qualifying income over £50,000 (self-employment and property income added together) have had to send HMRC a quarterly update. Those updates must arrive digitally, through HMRC-recognised software.
HMRC doesn't require you to stop using Excel. It requires a digital link between your records and its systems. Excel alone can't create that link. Excel paired with bridging software can.
What Is Bridging Software?
Bridging software sits between your spreadsheet and HMRC. It reads the numbers you've already entered, checks them, and submits them in the format HMRC requires.
It doesn't change how you keep your books or ask you to learn a new system. It just handles the last step: getting your figures to HMRC.
HMRC's position
This isn't a workaround. Bridging software is listed in HMRC's own guidance as a legitimate way to meet MTD requirements, and it appears on HMRC's official software finder.
See How It Works
Connect your spreadsheet and Otis reads your transactions. Check the suggested categories, click submit, and you're done. Try changing a category below.
| Date | Description | Amount | Type | Category |
|---|---|---|---|---|
| 05/01/2026 | Website design project for client | +£1200.00 | Income | Suggestion: Other Income |
| 08/01/2026 | Freelance consulting session | +£450.00 | Income | Suggestion: Other Income |
| 12/01/2026 | Commission income from partner site | +£150.00 | Income | |
| 15/01/2026 | Purchase of materials for client project | -£320.00 | Expense | |
| 18/01/2026 | Payment to subcontractor for graphics | -£500.00 | Expense | |
| 20/01/2026 | Virtual assistant wages | -£300.00 | Expense |
Why Excel Works for Self-Employed People and Landlords
If you run a freelance business, a small consultancy, or one or two rental properties, a spreadsheet is often the best tool for the job.
They're familiar
You already know how to use Excel or Google Sheets. There's no learning curve and no new software to figure out.
They're flexible
Track your income and expenses however you want. Custom categories, extra columns, your way.
They're cost-effective
No extra accounting subscription. If you've got Excel or Google Sheets, you're ready to go.
You own them
Your file lives on your device or cloud storage. You control your data completely.
What Actually Changes Under Making Tax Digital?
Stays the same: your spreadsheet, your bookkeeping, your categories.
Changes: you report quarterly instead of once a year, and you send those updates through HMRC-recognised software.
Making Tax Digital changes how information reaches HMRC. It doesn't change how you keep your records.
Bridging Software vs Accounting Software
Both meet MTD requirements. Xero and Sage are one route, not the only one. The right choice depends on how you already work.
Bridging software suits you if:
- You already track income and expenses in a spreadsheet
- You don't want to learn a new system
- You want the smallest possible change to your routine
Accounting software suits you if:
- You want built-in invoicing, payroll, or stock management
- You're growing and want more automation
- You'd rather have everything in one platform
Getting Started With Your Spreadsheet
This works well for sole traders, freelancers, consultants and landlords who already keep their records in Excel or Google Sheets. If that's you, you're most of the way there. Each quarter:
- Connect your spreadsheet to Otis
- Check the suggested categories
- Submit your update to HMRC
Common Questions
- Can I still use Excel for MTD?
- Yes. Excel isn't recognised by HMRC on its own, but paired with bridging software like Otis, it meets the requirement in full.
- Can I use Google Sheets?
- Yes. Google Sheets paired with bridging software works exactly the same way as Excel.
- Do I need accounting software?
- No. It's one valid route, not the only one. Bridging software is a recognised alternative if you'd rather keep your existing spreadsheet.
- Is bridging software recognised by HMRC?
- Yes. It's listed in HMRC's own guidance as a valid way to meet MTD requirements, and it appears on HMRC's official software finder.
- Will HMRC stop allowing spreadsheets?
- There's no sign of it. Spreadsheets with bridging software are a recognised route, and if the rules change, Otis will change with them.
- When is my next quarterly update due?
- Quarterly updates are due on 7 August, 7 November, 7 February and 7 May.
Ready to submit from your spreadsheet?
- Keep using Excel or Google Sheets, nothing to rebuild
- Recognised by HMRC and listed on its software finder
- Ready for your next update, due Sunday 7 February