Bridging software is an essential tool for taxpayers to comply with HMRC’s Making Tax Digital (MTD) for Income Tax without needing to overhaul their existing record-keeping system. Huge numbers of taxpayers still rely on spreadsheets to manage and calculate their Income Tax figures, and bridging software acts as a digital link between those spreadsheets and HMRC. By using MTD-compatible bridging software like Easy MTD, taxpayers can digitally transfer necessary figures from their spreadsheets directly to HMRC - ensuring full alignment with MTD for Income Tax regulations.
It is only the income and expenses figures of a taxpayer's business and property income sources that must be digitally recorded and linked. All other figures, such as personal income, reliefs and deductions can be recorded in any other way - but bridging software such as Easy MTD will still be needed to submit them to HMRC.
Bridging software is particularly useful for taxpayers not wanting to switch to a complicated and expensive accounting package. Instead, software like Easy MTD provides a cost-effective, efficient way to fulfill HMRC's digital requirements while maintaining familiar record-keeping processes. Say no to change and yes to compliance!