MTD Compliance & VAT Bridging

If you're VAT-registered and you're still using spreadsheets or non-MTD software, you need to make sure you're compliant with Making Tax Digital—and bridging software can help you stay compliant without changing your entire system. All VAT-registered businesses are required to comply with Making Tax Digital (MTD) for VAT, which mandates digital record keeping and digital submissions using compatible software or bridging software (gov.uk MTD software). Bridging software acts as a connector between non-compatible systems (such as Excel spreadsheets) and HMRC systems, allowing businesses to maintain existing spreadsheet-based bookkeeping while remaining MTD compliant. Bridging software is 100% compatible with Making Tax Digital because it uses digital links to transfer data, avoiding manual manipulation such as copying and pasting, and maintaining a clear digital journey from spreadsheet to VAT return.

The problem is most businesses don't realise they can use bridging software to stay compliant while keeping their existing spreadsheet system. They think they need to switch to expensive cloud accounting software, or they don't understand how bridging software works. That causes problems—MTD compliance violations and penalties, unnecessary software switching costs, confusion about what's required, and wasted time trying to figure out MTD requirements.

We handle MTD compliance and VAT bridging for businesses wanting to stay compliant while using spreadsheets: MTD compliance review (reviewing your current system and identifying what needs to be done for MTD compliance), bridging software setup (setting up bridging software to connect your spreadsheets to HMRC for MTD-compliant VAT return submission), digital link configuration (configuring digital links between your spreadsheets and bridging software to ensure MTD compliance), VAT return filing (filing your VAT returns through bridging software with proper digital links), compliance support (providing ongoing support to ensure you remain MTD compliant), and software recommendations (recommending the right bridging software or MTD-compatible software for your needs). Whether you're a VAT-registered business in Medway using spreadsheets, a business in Maidstone needing MTD compliance help, or a company in Canterbury wanting to understand bridging software options, we'll handle your MTD compliance and VAT bridging that works. No unnecessary software changes, no compliance violations—just practical help staying MTD compliant with your existing system.

What this helps you do (fast)

• Stay MTD compliant while using spreadsheets — We'll set up bridging software so you can keep using Excel or other spreadsheets while meeting MTD requirements. Staying compliant avoids penalties and keeps you legal.
• Avoid unnecessary software switching — We'll help you use bridging software instead of switching to expensive cloud accounting software if spreadsheets work for you. Avoiding switching saves money and disruption.
• File VAT returns compliantly — We'll ensure your VAT returns are filed through proper digital links, meeting all MTD requirements. Compliant filing avoids penalties and HMRC enquiries.
• Understand MTD requirements — We'll explain what MTD for VAT requires and how bridging software meets those requirements. Understanding requirements helps you stay compliant.
• Save time and money — Bridging software is typically cheaper than full cloud accounting software and keeps your existing workflow. Saving money helps your bottom line.
• Get ongoing compliance support — We'll provide ongoing support to ensure you remain MTD compliant as requirements change. Ongoing support protects you from compliance issues.

How it works

Step-by-step process for MTD compliance and VAT bridging:

1. Discovery call — We chat about your situation: whether you're VAT-registered and when you registered, what system you're currently using for bookkeeping (spreadsheets, manual records, other software), how you currently file VAT returns, whether you're already registered for MTD for VAT, what your bookkeeping workflow looks like, and what you want to achieve. Understanding your situation helps us determine what needs to be done.
2. MTD compliance review — We review your current system for MTD compliance:
   • Current system review — We review your current bookkeeping system (spreadsheets, software, etc.) to understand how you keep records and file VAT returns.
   • MTD requirements check — We check whether your current system meets MTD requirements (digital record keeping, digital links, digital submissions).
   • Compliance gaps identification — We identify any gaps in MTD compliance and what needs to be addressed.
   • Recommendations — We recommend the best solution for your situation (bridging software, full MTD-compatible software, or hybrid approach).
   MTD compliance review establishes what needs to be done.
3. Bridging software selection and setup — If bridging software is suitable, we help you select and set up bridging software:
   • Software selection — We help you choose the right bridging software based on your needs, budget, and existing system. Popular options include various bridging software solutions that work with Excel and other spreadsheets.
   • Software setup — We set up your bridging software, creating accounts and configuring settings for your business.
   • Spreadsheet preparation — We prepare your spreadsheets for bridging software, ensuring they're organised correctly with the right data in the right cells.
   • Digital link configuration — We configure digital links between your spreadsheets and bridging software, ensuring data flows automatically without manual manipulation.
   Bridging software setup enables MTD-compliant filing.
4. Digital link establishment — We establish proper digital links:
   • Spreadsheet to bridging software link — We create digital links that automatically transfer data from your spreadsheets to bridging software (using CSV imports, automatic links, or other digital methods).
   • Bridging software to HMRC link — We ensure bridging software has proper digital links to HMRC systems for VAT return submission.
   • Digital journey verification — We verify the complete digital journey from spreadsheet to HMRC, ensuring no manual steps that violate MTD requirements.
   • Testing — We test digital links to ensure data flows correctly and VAT returns can be submitted compliantly.
   Digital link establishment ensures MTD compliance.
5. VAT return filing process — We help you file VAT returns through bridging software:
   • Data extraction — We extract VAT data from your spreadsheets through digital links into bridging software.
   • VAT calculation — Bridging software calculates VAT figures automatically based on your spreadsheet data.
   • Return preparation — We prepare your VAT return using bridging software, reviewing figures before submission.
   • Digital submission — We submit your VAT return to HMRC through bridging software's digital links, ensuring MTD compliance.
   • Confirmation — We confirm submission is successful and provide you with confirmation.
   VAT return filing ensures compliant submission through digital links.
6. Training and ongoing support — We train you and provide ongoing support:
   • Bridging software training — We train you on using bridging software, including how to prepare spreadsheets, run data through bridging software, and submit VAT returns.
   • MTD compliance training — We explain MTD requirements and how to maintain compliance, including what constitutes digital links and what violates MTD rules.
   • Spreadsheet organisation — We advise on organising spreadsheets to work efficiently with bridging software.
   • Ongoing support — We provide ongoing support for VAT return filing, troubleshooting, and compliance questions.
   Training ensures you can maintain MTD compliance independently.
7. Compliance monitoring and updates — We monitor your MTD compliance:
   • Regular reviews — We review your system periodically to ensure ongoing MTD compliance.
   • Requirement updates — We keep you informed of any MTD requirement changes and update your system as needed.
   • HMRC correspondence — We help with any HMRC enquiries or correspondence related to MTD compliance.
   • Best practice advice — We provide advice on maintaining best practices for MTD compliance.
   Compliance monitoring ensures ongoing compliance.

We handle all aspects of MTD compliance and VAT bridging, from initial review to ongoing support. The key is understanding MTD requirements, setting up proper digital links, and ensuring compliant VAT return filing through bridging software.

Costs & timelines

Pricing factors:

• Current system complexity — Simple spreadsheet system vs. complex system with multiple spreadsheets or sources of data increases setup complexity.
• Number of VAT returns — More frequent VAT returns (monthly vs. quarterly) may require more ongoing support.
• Bridging software choice — Different bridging software options have different costs (typically £5–£30 per VAT return or £50–£200 per year).
• Training requirements — Amount of training needed depends on your team's experience with bridging software and MTD requirements.
• Ongoing support needs — One-off setup vs. ongoing support for VAT return filing affects pricing.

Commonly reported ranges by local providers:

• Simple MTD bridging setup (straightforward spreadsheets, basic bridging software): £200–£400 (includes compliance review, bridging software setup, digital link configuration, basic training)
• Standard MTD bridging setup (moderate complexity, standard bridging software, training): £300–£600 (includes comprehensive compliance review, bridging software setup, digital link configuration, VAT return filing, training)
• Complex MTD bridging setup (complex spreadsheets, multiple data sources, ongoing support): £500–£1,000+ (includes comprehensive compliance review, complex bridging software setup, multiple digital links, ongoing support, extensive training)
• Ongoing VAT return filing support (per return): £50–£150 per VAT return (ongoing filing support through bridging software)

Why MTD compliance and VAT bridging cost what they do:

• Specialist knowledge — Understanding MTD requirements, bridging software options, and digital link requirements requires specialist knowledge.
• Time and complexity — Compliance review, bridging software setup, digital link configuration, and training take time and attention to detail.
• Value provided — MTD compliance and VAT bridging help you avoid penalties, stay compliant, and continue using your existing system, providing substantial value.
• Bridging software costs — Bridging software subscriptions or per-return fees are additional (typically £5–£30 per return or £50–£200 per year).

Timeline: MTD compliance review typically takes 1 week. Bridging software setup and digital link configuration typically takes 1–2 weeks. Training typically takes 1–2 hours. Overall setup typically takes 2–4 weeks from start to finish, depending on complexity.

Payment: Typically invoiced on completion of setup, or for ongoing support, invoiced per VAT return or annually depending on agreement. Payment terms are typically 14–30 days.

No hidden fees. Our price includes MTD compliance review, bridging software setup, digital link configuration, training, and ongoing support (if included in package). Bridging software subscriptions or per-return fees are separate and paid directly to software providers.

Kent (UK) focus

For VAT-registered businesses in Kent, whether you're a business in Medway using spreadsheets, a company in Maidstone needing MTD compliance help, or a business in Canterbury wanting to understand bridging software options, MTD compliance and VAT bridging helps you stay compliant while keeping your existing system. Many Kent businesses don't realise they can use bridging software to stay MTD compliant while using spreadsheets, or they think they need to switch to expensive cloud accounting software. We help local businesses understand MTD requirements, set up bridging software, configure digital links, file VAT returns compliantly, and get ongoing support, ensuring they stay compliant without unnecessary disruption. It's worth getting it right—MTD compliance violations can result in penalties, while bridging software lets you stay compliant with minimal change to your existing workflow.

Common Kent MTD bridging scenarios:

• Spreadsheet users — Businesses using Excel or other spreadsheets for bookkeeping who want to stay MTD compliant without switching systems.
• Small VAT-registered businesses — Small businesses who find bridging software more cost-effective than full cloud accounting software.
• Businesses with existing workflows — Businesses with established bookkeeping workflows who want minimal disruption while achieving MTD compliance.
• Businesses needing MTD compliance — VAT-registered businesses who need help understanding and achieving MTD compliance.

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent businesses are dealing with. MTD compliance review, bridging software setup, digital links, VAT return filing, ongoing support—we'll handle your MTD compliance and VAT bridging that keeps you compliant with minimal disruption.

FAQs