Making Tax Digital software
Choosing compatible software, and what digital links actually require.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
MTD requires records kept digitally and returns submitted through compatible software, with digital links throughout the chain.
Why it matters
A digital link means data transfers without manual re-entry. Copying a figure from a spreadsheet into a return by hand is not compliant.
What it looks like in practice
Bridging software connects a compliant spreadsheet to HMRC and is a legitimate route. Full accounting software is usually easier at any scale.
What to watch out for
Cut and paste between spreadsheets, which HMRC has confirmed does not constitute a digital link.
Where to get proper advice
HMRC's compatible software list, and your accountant on which suits your bookkeeping.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
Fiducia Together