Making Tax Digital (MTD): Using a bridging service

If you’re a UK-based freelance editor or proofreader who still hasn’t decided how to deal with Making Tax Digital, here’s how one of your colleagues solved the problem by using a bridging service.

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In this post ...

• What is Making Tax Digital?
• When does MTD start?
• How often do we have to file with MTD?
• What is a bridging service?
• Why I chose 123sheets
• Preparation tips for using bridging services

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​A caveat

I’m a professional editorial business owner, not a tax expert. The information I’ve provided below is what I’ve picked up on my MTD journey, and I've done my best to ensure it’s correct at the time of writing (April 2026).
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If you’re in any doubt about your own tax position, speak to an accountant. There’s lots of information at GOV.UK too.

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What is Making Tax Digital?

Making Tax Digital (MTD) is the UK government’s attempt to drag tax reporting out of spreadsheets and shoeboxes and into the twenty-first century.

MTD means we, as UK-based sole traders, have to keep digital records and file updates using compatible software several times a year. The idea is to make things more accurate, reduce errors and cut down on last-minute annual panics.

Personally, I wasn’t panicked by the traditional system. And I was more than happy managing my finances in a spreadsheet … And with submitting my tax return via HM Revenue & Customs (HMRC)’s online self-assessment gateway … And with doing that just once a year … And at zero cost to me. 
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I’m starting to sound like a grouch, but I promise I’ll be sharing the low-cost solution I found below!

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When does MTD start?

MTD is already up and running for self-employed people who are earning over a particular income threshold. Those who don’t meet that threshold will have a year’s grace. 
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Still, you might qualify to join the scheme early, and that could be a good option for anyone wanting to get to grips with it ahead of time so there’s no last-minute rush.

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How often do we have to file with MTD?

With MTD we have to submit what HMRC calls quarterly updates.

The key thing we all need to bear in mind is that these updates are cumulative. We’re not doing four separate mini-returns. Think of it as a rolling picture that builds across the year.

​If your financial year starts on 6 April, the deadlines will be as follows:

• Q1 (6 Apr–5 Jul): due 7 August
• Q1–Q2 (6 Apr–5 Oct): due 7 November
• Q1–Q3 (6 Apr–5 Jan): due 7 February
• Q1–Q4 (6 Apr–5 Apr): due 7 May

At the end of the year, there's an End of Period Statement (EOPS) that, says HMRC, ‘confirms the figures for the full year and allows accounting adjustments such as capital allowances or basis period adjustments’.

Then there’s the final declaration (which replaces the self-assessment tax return), and that’s due by 31 January following the end of the tax year.
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What all this means is that there are way more touchpoints but no change to when your financial year starts or when the final bill gets sorted.

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What is a bridging service?

Given that I was already perfectly happy with using a spreadsheet, then submitting my tax returns digitally, and not spending a bean in the process, I absolutely didn’t want to fork out for an accountant four times a year or expensive software.

For that reason, last year I started exploring affordable bridging services.

A bridging service for MTD acts a bit like a translator between your existing records and HMRC’s systems.

If, like me, you’re still recording your income and expenses in spreadsheets, those spreadsheets aren’t set up to talk directly to HMRC. That’s where bridging software comes in.

It bridges the gap by taking the figures from your spreadsheet and submitting them to HMRC in the right digital format. And that allows you to stay compliant with MTD without ditching the way you already work.

In practice, it means:
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• you keep your records in Excel (or similar)
• the bridging tool links to your spreadsheet
• it pulls through the relevant numbers
• then sends them to HMRC as part of your MTD submission.

​So, if you’re happy with spreadsheets, like I am, and don’t want to move to full accounting services just yet (or ever!), a bridging service can be a handy halfway house.

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Why I chose 123sheets

My research led me to sign up with  123sheets. Here's why I chose them:

• They’re on HMRC’s list of compatible providers.
• They provide a downloadable, ready-to-go, MTD-compliant worksheet, meaning I can link the relevant cells in my Excel spreadsheet to the appropriate cells in their worksheet. Then it’s simply a case of logging in to their site, uploading the quarterly update and clicking a ‘File’ button.
• It’s cheap at chips – less than £45 (including VAT) a year, and there’s a 50% discount on your first year!
• The dashboard is dead easy to use – like it was made for people (like me) who can think of a thousand other things they’d rather do that file a tax return.
• There are videos to guide you in the event you get stuck (though you probably won’t).

To be clear, there’s no financial benefit for me by telling you about this company. I’m simply sharing the choice I made with you, and the reasons behind it, so that anyone who’s feeling a bit flummoxed, and who’s a spreadsheet user like me, might feel a bit more reassured that there are user-friendly options out there. There’ll be plenty of other UK-based professionals in our industry who've already opted (or will opt) for other methods with different providers.

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Preparation tips for using bridging services

Here are some tips to help you prepare if you decide to go down the bridging-software route.

Choose a good-fit provider

• Look for one that makes you feel like it’s easing the load rather asking you to climb yet another hill.
• Select one that’s on HMRC’s list of compatibles.
• Check that you understand how the software works well ahead of time, and that your records system works with theirs.

Prep your spreadsheet

• Make sure your accounts spreadsheet is recording quarterly totals for income and expenses.

• It’ll save you time if you add a sheet that captures the cumulative totals: Q1, Q1–Q2, Q1–Q3 and Q1–Q4.

Sign up for MTD

• Any bridging service you choose can’t connect your records with HMRC until you’ve authorised them to do so. For that to work, you need to have signed up for MTD.
• To sign up for MTD in a particular year, you need to have filed your previous year’s tax return.

Shift your mindset

• As soon as your income falls within MTD’s scope, you’ll need to be ready, so start prepping before you need to so that you have a bit of breathing space.
• Set up a routine so that you’re recording income and expenses on a regular basis (eg monthly or even weekly). That way, when a submission deadline rolls around, you’re basically already done.

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Wrapping up

Change can be hard for busy business owners, especially when we can’t immediately see how the outcomes benefit us. That’s how MTD is making a lot of self-employed people feel.

​However, by getting organised, and selecting tools and providers who can help us keep things ticking over smoothly, I'm confident that MTD can be just another a bit of admin rather than a headache.

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About Louise Harnby

Louise Harnby is a line editor, copyeditor and proofreader who specializes in working with crime, mystery, suspense and thriller writers.

She is an Advanced Professional Member of the Chartered Institute of Editing and Proofreading (CIEP) and co-hosts The Editing Podcast.

• Get in touch: Louise Harnby | Crime Fiction & Thriller Editor
• Connect: X @LouiseHarnby, Facebook and LinkedIn
• Learn: Books and courses
• Discover: Resources for authors and editors

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