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Yes, you can still use spreadsheets, BUT it is no longer as simple as just typing the numbers into the HMRC website.
If you are self-employed, you might currently use a simple spreadsheet to track your income and expenses. Once a year, you probably just type the totals from that spreadsheet into the HMRC website to do your tax return.
But with new rules called Making Tax Digital (MTD) coming in, you might be wondering if this is still allowed.
Here is what you need to know.
The Old Way vs. The MTD Way
Currently, many people use their own hmrc self assessment spreadsheet—essentially just a standard Excel file where they list their invoices and receipts. At the end of the year, they manually enter the final figures into HMRC’s online form.
Under Making Tax Digital, HMRC will no longer let you manually type those figures into their website. They want your records to be sent to them digitally, straight from a computer program.
How to keep using spreadsheets
If you really love spreadsheets and don’t want to change, you can keep using them, but you will need an extra step.
You will need to buy something called “Bridging Software.”
Bridging software is a special tool that reads your hmrc mtd spreadsheet and sends the data to HMRC for you. You have to make sure your spreadsheet is set up exactly right so the bridging software can read it.
Is there an official HMRC spreadsheet template?
Many people search online for an official hmrc spreadsheet template hoping for a free, easy fix.
Unfortunately, HMRC does not generally provide these standard templates for self-employed people. You usually have to create your own or buy a template from a third party. Even if you find a template, you will still need bridging software to send it to HMRC.
The Easier Alternative
While you can stick with spreadsheets and add bridging software, it often becomes complicated and easy to make mistakes.
The easiest option is to work with an accountant who specializes in MTD. They can get you set up with the right software and handle the quarterly digital submissions for you.
This way, you don’t have to worry about learning “bridging” tools or wondering if your hmrc mtd spreadsheet is compliant—your accountant ensures it is all done correctly for you.
If you need help with your tax return, Contact Me
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