Making Tax Digital software for spreadsheet clients

QuickBooks' bridging software is a free tool within our accounting software that can link your clients’ business records to HMRC’s systems in a Making Tax Digital-compatible manner. Businesses can continue to keep documents in paper form if they prefer but each individual transaction (not summaries) will need to be recorded and stored digitally.

QuickBooks’ bridging software for VAT is a CSV (Comma-Separated Values) import tool that imports the final values (9 boxes) of a VAT return from a CSV file into QuickBooks. From here, it can be submitted to HMRC in line with Making Tax Digital rules.

Bridging software can be a suitable solution for clients with specialist or complex accounting needs that aren’t supported by QuickBooks Online. For most other clients, keeping their records in digital accounting software is a more long-term solution. However, not all of your clients may be ready to make the move from spreadsheets to digital records. In this case, bridging software provides a flexible solution until they’re ready to move to the cloud.

HMRC has confirmed that bridging software is still an MTD-compliant solution for VAT now that the soft landing period has ended. This means that your clients can choose to keep using spreadsheets, but they also need to maintain a digital record-keeping solution. However, as their accountant, you may want to recommend moving to digital accounting software instead. 90% of QuickBooks customers* agree that QuickBooks helps them save time on accounting- and/or bookkeeping-related activities when compared to using spreadsheets.

*Based on an August 2020 survey of QuickBooks active subscribers. 90% of respondents who state they have previously used spreadsheets agree or strongly agree they save time on accounting- and/or bookkeeping-related activities with QuickBooks.

In order to be compliant with MTD, bridging software needs to provide a digital link between your clients' accounting records and HMRC, so you can submit their tax returns digitally, as the law demands. QuickBooks’ bridging software for VAT is recognised by HMRC as ‘functional compatible software’ that can be used to submit tax returns in accordance with Making Tax Digital.

To use the bridging feature, your clients need a Business Tax account to enable online VAT submissions as well as a VAT number. As their accountant, you need an Agent Services Account (ASA) and authorisation from your client to assist them with their MTD for VAT affairs.

No, QuickBooks’ bridging software feature is available in QuickBooks Online plans only. It means that when your client is ready to migrate to the cloud, some of their data is already in QuickBooks.

Absolutely. Your account manager can help you with this.

Yes. To comply with Making Tax Digital, your clients will be required to have digital records of all support documentation such as invoices and bank statements.