MTD ITSA Bridging Software Setup (DIY with Confidence)

Spreadsheet-Based Submissions to HMRC

Bridging software allows sole traders and landlords to continue using spreadsheets while complying with Making Tax Digital for Income Tax (MTD ITSA). it allows compliance with MTD ITSA, without using accounting software.

👉 Book a meeting to check whether bridging software is suitable

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What Is MTD ITSA Bridging Software?

MTD ITSA bridging software:

• Connects your spreadsheet records to HMRC

• Submits quarterly updates, End of Period Statements (EOPS), and Final Declarations

• Maintains the digital links required by HMRC

It does not replace spreadsheets and does not manage bookkeeping automatically. Accuracy of the records remains the taxpayer’s responsibility.

👉 Discuss whether bridging software is appropriate before committing

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Who Is Bridging Software Suitable For?

Bridging software is typically suitable where you:

• Already maintain records accurately in spreadsheets

• Use stable and straightforward income and expense categories

• Have confidence in maintaining digital records consistently

• Do not want the complexity of full accounting software

It may be less appropriate where records are complex, frequently adjusted, or where additional controls are needed.

👉 Book a free short suitability review and fixed-fee quote

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How Submissions Work Using Bridging Software

1. You record your Income and expenses in a spreadsheet

2. The spreadsheet categories are mapped to HMRC requirements

3. The bridging software creates a compliant digital link to HMRC

4. You use the software to submit Quarterly updates digitally

5. Year-end EOPS and Final Declaration are submitted in the same way

Quarterly updates are informational only and do not generate tax bills.

👉 Talk through the submission process and setup requirements

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MTD ITSA Bridging Software Setup – One-Off Service

This service provides a one-time setup and configuration to ensure bridging software is implemented correctly from the outset.

What the Setup Includes

• Advice about general digital record keeping

• Advice on suitability for bridging software

• Guidance on selecting appropriate bridging software

• Review of spreadsheet structure for MTD compliance

• Mapping of income and expenses to HMRC categories

• HMRC integration set up and testing

• Walkthrough of the quarterly submission process

What the Setup Does Not Include

• Software licence

• Ongoing bookkeeping or spreadsheet maintenance

• Preparation or submission of quarterly updates

• Ongoing compliance monitoring or tax advice

Ongoing support is available separately if required.

👉 Discuss booking bridging software setup

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Advantages and Limitations of Bridging Software

Advantages

• Continue using familiar spreadsheets

• Lower cost than full accounting software

• Minimal change to existing processes

Limitations

• Manual processes remain

• Fewer built-in controls

• Changes to your spreadsheet can break automation

• Greater reliance on user accuracy

Understanding these trade-offs is essential before choosing this approach.

👉 Talk through the pros and cons before deciding

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Why Use Circular3?

MTD ITSA is a compliance change, not a software decision. Bridging software works only when the setup is appropriate, correct, and HMRC-compliant.

Circular3 focuses on:

• Getting it right first time

  Setup is based on HMRC rules, not shortcuts.

• Suitability before software

  Bridging software is used only where it fits the circumstances.

• Clear scope, fixed fee

  One-off setup with no implied ongoing commitment.

• Practical spreadsheet experience

  Real-world understanding of spreadsheet-based records.

• Compliance-first approach

  Digital links, audit trails, and reduced HMRC risk.

The aim is simple: compliant MTD ITSA systems that work in practice—without unnecessary complexity.