If you are searching for “free Making Tax Digital software” or “bridging software for Excel”, you are asking the right question at the right time - the first MTD ITSA quarterly deadline (7 August 2026) has just passed, and the next one lands 7 November 2026. This guide is deliberately neutral: it explains what “MTD-compatible” actually means, what bridging software is, what genuinely free options look like, and what to check before you commit - without pushing you toward any one paid product.
What “MTD-compatible” actually means
Software is MTD-compatible when it can connect directly to HMRC’s Making Tax Digital APIs to:
- Keep digital records of your income and expense transactions
- Send quarterly updates to HMRC every three months
- Submit your final declaration at the end of the tax year
It is not enough for a spreadsheet or accounting tool to simply “look digital” - it has to be recognised by HMRC’s testing process and able to talk to the MTD API directly, or connect to something that can (see bridging software, below). Using an uncompatible tool and re-typing figures into a portal manually does not satisfy MTD.
HMRC’s official software finder is the canonical source - not this article
HMRC maintains the authoritative, up-to-date list of recognised MTD ITSA software through its software finder tool, not a static published table. As of the tool’s July 2025 relaunch, HMRC replaced the old fixed list with a short questionnaire that returns a personalised shortlist based on your business type, income sources, and budget.
Always check the live tool before choosing:
GOV.UK: Find software that’s compatible with Making Tax Digital for Income Tax
This article deliberately does not name a “best” product, and does not carry any affiliate or commercial links - HMRC’s finder is the only list you should trust, because it changes as products gain or lose recognition.
Is there genuinely free MTD software?
Yes, in principle - HMRC’s own guidance says free products are available “for those with simple tax affairs”, but it is explicit that there may be limits on how a free product can be used. In practice, “free” MTD software typically means one or more of:
- A free tier for a single, very simple income source (e.g. one self-employment with no employees)
- A free tier capped at a small number of transactions or quarterly submissions per year
- A free trial period that converts to paid after a fixed number of months
- A free bridging tool that only submits data - you still need somewhere to keep the underlying digital records
Because eligibility criteria and free-tier limits change frequently, use HMRC’s finder and filter for your circumstances rather than relying on a name remembered from a forum post or an old article. Check specifically what happens once you exceed the free tier’s limits - some options simply lock further submissions until you upgrade, which is a bad surprise the week before a deadline.
Bridging software for Excel and spreadsheet users
If you already keep clean records in Excel or Google Sheets, you do not necessarily need to migrate to full accounting software. Bridging software is a lightweight tool that sits between your spreadsheet and HMRC’s MTD API: it reads figures out of your spreadsheet and submits them as a quarterly update or final declaration, without you re-typing anything into a separate system.
The digital links rule
The catch is HMRC’s digital links requirement. Once a transaction is entered digitally, every later step - totalling, transferring between spreadsheets, importing into bridging software - must happen through an automated digital link, not manual copy-and-paste or manual retyping. A single formula-linked cell, an exported CSV, or an API-connected bridging tool all count as digital links. Manually retyping a total from one sheet into another does not.
In practice this means:
- One spreadsheet, one bridging tool: keep all transactions in a single workbook (or linked workbooks with formula references) and feed it straight into bridging software. This is the simplest way to stay compliant.
- Multiple disconnected spreadsheets: if you keep separate spreadsheets per property or per quarter and manually re-key totals between them, that manual step breaks the digital link - you would need to either link the sheets with formulas or export/import automatically instead.
- Bank feeds: many bridging tools can also pull a bank statement CSV in directly, which itself counts as a digital link into your spreadsheet, provided you are not retyping the figures by hand.
When bridging software is enough - and when it isn’t
Bridging software is generally a reasonable fit if:
- You have a small number of transactions and are comfortable maintaining a spreadsheet
- You mainly need quarterly submission and final declaration, not day-to-day bookkeeping features like invoicing or payroll
- You want to keep your existing workflow rather than relearn a new accounting package
Full accounting software (with a built-in MTD ITSA submission feature) is usually the better fit if:
- You have high transaction volumes, multiple bank accounts, or need invoicing/expense-scanning features
- You want automatic bank feeds and reconciliation rather than manual spreadsheet upkeep
- You use an accountant who works from a shared cloud ledger rather than a spreadsheet you email over
What sole traders and landlords should each check before choosing
Sole traders:
- Does the software support Class 2 and Class 4 National Insurance figures alongside your income tax position, or only the income/expense summary itself?
- Can it handle more than one trade if you run multiple self-employment income sources - each needs its own quarterly updates?
- Does it support the accounting basis (cash or accruals) you actually use?
Landlords:
- Does it separate a UK property business from an overseas property business, since each needs its own quarterly updates?
- If you have several properties inside one property business, can it consolidate them into a single update rather than filing per-property?
- Does it handle jointly-owned property income splits correctly if you co-own with a spouse or partner?
Both groups should confirm the tool covers the final declaration, not just quarterly updates - some free or lightweight tools only handle the quarterly summaries and expect you (or your accountant) to complete the year-end step elsewhere.
Migration timing relative to your quarterly deadlines
Don’t wait until the week before a deadline to switch software. A sensible sequence:
- Now, ahead of your next quarter: shortlist 2-3 options using HMRC’s finder tool and confirm which qualifying income sources you need covered.
- Start of your next quarterly period: begin keeping records in the new tool from day one of the period, rather than partway through - this avoids having to migrate mid-quarter figures.
- A few days before the deadline (not on the day): do a practice submission or review pass, since HMRC and provider systems can be busier close to the 7th-of-the-month deadlines.
See our full Making Tax Digital deadlines calendar for every 2026-27 quarterly date and the final declaration deadline, so you can line up a software switch with the start of a quarter rather than mid-period.
Related reading
- Making Tax Digital for Income Tax: what you need to know for April 2026 - the full rollout timeline and preparation checklist
- Making Tax Digital (MTD): what you need to know - how MTD for Income Tax relates to MTD for VAT
- Making Tax Digital deadlines - every 2026-27 quarterly date, penalty rules and the final declaration deadline
Use our Making Tax Digital Checker to confirm your qualifying income and your personal mandation date before you commit to a software switch.