The Cheapest Way to Comply with MTD Why Bridging Software Is the Clear Winner

As MTD IT becomes mandatory from April 2026, many taxpayers are concerned about rising software costs.

Monthly subscriptions for full bookkeeping systems can add up to several hundred pounds per year, even for users who only need them for quarterly MTD submissions.

Fortunately, there is a far cheaper alternative.

1. Why You Do Not Need Expensive Software for MTD

HMRC allows:

• •Digital records in Excel
• •Submissions through bridging software There is no requirement to change your bookkeeping system or commit to monthly software fees.

2. Why Bridging Software Is the Lowest-Cost MTD Option

Bridging software handles only the essential MTD functions, avoiding the expense of complex bookkeeping platforms.

Key benefits:

No subscription fees

You avoid software that can cost hundreds annually.

No onboarding or training

Excel remains your digital record system.

No unnecessary automation

You maintain full control of your figures.

No long-term commitments

Pay only when you submit.

This makes bridging software the most cost-efficient way to comply.

3. Spreadsheets + MTD Sheets = The Cheapest MTD Workflow

Most small businesses already use Excel for bookkeeping.
With MTD Sheets, that workflow becomes fully compliant without any additional complexity or cost.

Most small businesses already use Excel for bookkeeping.
With MTD Sheets, that workflow becomes fully compliant without any additional complexity or cost.

You get:

• •The ease of spreadsheet bookkeeping
• •Accurate VAT control
• •Extremely low MTD filing costs
• •Fast, mobile-friendly submissions

4. Why MTD Sheets Stands Out

MTD Sheets is designed to be the most affordable and straightforward MTD tool available.

Very low per-submission cost

Keeps annual MTD expenses minimal.

Designed by chartered accountants

Ensures accuracy and compliance.

Works with any spreadsheet

Zero restructuring required.

Supports complex VAT scenarios

Ideal for non-standard VAT treatment.

Submit from any device

Desktop, tablet or mobile.

Optional guest submissions

No sign-up necessary.

Avoids costly software commitments

You are not tied to ongoing subscription fees.

5. Why Bridging Software Is Smarter Than Full Accounting Software

Beyond cost, bridging software offers:

• •No learning curve
• •No data migration
• •No rigid system constraints
• •No automation errors
• •No vendor lock-in

It is simply the most practical approach for MTD.

Final Verdict

For anyone wanting to stay compliant with MTD at the lowest cost:

Excel + MTD Sheets is the clear winner.

Cheap, simple, accurate and flexible.