Status at 22 October 2026
Making Tax Digital for Income Tax started on 6 April 2026 for people with qualifying income over £50,000 in 2024 to 2025. It starts on 6 April 2027 if your 2025 to 2026 qualifying income was over £30,000, and on 6 April 2028 if your 2026 to 2027 income is over £20,000. This guide is about the records and software side. For the threshold test, see our £30,000 guide.
The short answer
- Yes, a spreadsheet can be your record-keeping software. GOV.UK says so.
- No, a spreadsheet alone is not enough. You need software that can send your quarterly updates and your tax return to HMRC.
- If you use more than one product, your records must be digitally linked between them.
- Software that connects to a spreadsheet and sends the figures for you is often called bridging software. HMRC’s own page on choosing software describes it this way: you keep records in a spreadsheet, and the software connects to them and makes your submissions.
Three ways to set it up
| Set-up | What you do | Digital link needed? | Suits |
|---|---|---|---|
| All-in-one software | Enter or import records in the software, which also sends updates | No | Landlords happy to learn a new tool, or who want bank feeds |
| Spreadsheet plus bridging software | Keep records in your sheet, connect the bridging software, send updates from it | Yes | Landlords who already track rent in Excel or Sheets |
| Spreadsheet only | Keep records in a sheet | n/a | Not enough: nothing can be sent to HMRC |
HMRC does not recommend any product. Its software finder lists products that have been through its recognition process, and says some free products are available for people with simple tax affairs, with limits on how they can be used.
What HMRC means by a digital link
If your records live in one place and the software that sends them to HMRC is another product, the data has to move between them by a digital link. GOV.UK lists these as acceptable:
- linked cells in spreadsheets
- emailing a spreadsheet of digital records so that it can be imported into another product
- moving records on a portable device
- XML or CSV import and export, or downloading and uploading a file
- automated data transfer or an API
Things that are not a digital link include copying figures by writing them out in another cell or another program, and using cut and paste or copy and paste to move records. Once a record has gone to HMRC in a quarterly update, GOV.UK says you must not move it by hand within your software or into other software.
Read the exact words on the GOV.UK page before you design your sheet, because they are written for records that move between products. The practical rule is: let a file import or a linked cell carry the figures, and do not retype them.
What your spreadsheet has to hold
For UK property, each record needs an amount, the date received or incurred, and a category. The categories are the same ones used in Self Assessment.
- You do not need a separate record for each UK property. If you own part of a property with someone else, you record only your share.
- If your UK property turnover is under £90,000, simpler categories are available. If it reaches £90,000, you must fully categorise that income source’s records, including earlier records in the current and following tax year.
- Foreign property is different: you need separate records for each foreign property.
- Keep your digital records for at least five years after the 31 January submission deadline for the tax year, as well as your normal supporting documents such as bank statements.
A ledger with one row per payment and a drop-down for the category does the job. Our own Landlord MTD Starter Kit is built that way, but any layout works if it holds the three things above.
What goes to HMRC, and when
A quarterly update is not a list of transactions. It sends totals for each income and expense category, and each update is cumulative: it covers everything from 6 April to the end of that update period.
| Update period (standard) | Update period (calendar) | Deadline |
|---|---|---|
| 6 April to 5 July | 1 April to 30 June | 7 August |
| 6 April to 5 October | 1 April to 30 September | 7 November |
| 6 April to 5 January | 1 April to 31 December | 7 February |
| 6 April to 5 April | 1 April to 31 March | 7 May |
If you want calendar update periods, which suit a 1 April to 31 March accounting period, check that the software you choose supports them.
Penalties. GOV.UK says HMRC will not apply penalty points for late quarterly updates during the 2026 to 2027 tax year. After that, a missed quarterly deadline earns one point, and four points lead to a £200 penalty. The page we read names only 2026 to 2027, so check GOV.UK for how the first-year relief applies to you if you start in April 2027.
How to choose bridging or all-in-one software
HMRC says the software must let you send quarterly updates and submit your tax return, report all your other income to complete your return, support all your income sources, and work with your accounting period. Ask these questions of any product:
- Is it on HMRC’s list of software that works with Making Tax Digital for Income Tax?
- Does it read your file type: Excel, Google Sheets, Numbers, CSV?
- Does it send quarterly updates and let you finish the year?
- Does it cope with joint property and your category list?
- What does it cost, and what are the limits on any free version?
A 10-point check for your spreadsheet
- One row per payment, with date, amount and category.
- Categories match the Self Assessment property categories.
- Personal spending and capital purchases are kept out of the income and expense columns, or clearly separated.
- Jointly owned property shows your share only.
- Totals by category are calculated by formula, not typed.
- The sheet has a cumulative total from 6 April for each category.
- The bridging software reads those totals from the file or a linked cell. You do not retype them.
- You have tried a test quarter with the software before 6 April.
- A copy is backed up and kept for at least five years after the filing deadline.
- You know your update deadlines and have put them in your diary.
Common mistakes
- Retyping the figures from the sheet into the software.
- Netting expenses off against income when the update asks for a total for each category.
- Forgetting your share on jointly owned property.
- Leaving it until April, when you could have tested with the sheet and software in the autumn.
Frequently asked questions
Do I have to buy accounting software?
Not necessarily. HMRC says the software that connects to your records, such as a spreadsheet, can make your submissions to HMRC. You still need software that is compatible with Making Tax Digital for Income Tax to send them.
Does Google Sheets count as a spreadsheet?
GOV.UK talks about spreadsheets in general. Whether a particular bridging product reads Google Sheets is for that product to say, so check before you choose.
Do I need a separate sheet for every property?
No. GOV.UK says you do not need separate digital records for each UK property.
When must I start keeping digital records?
From the date Making Tax Digital for Income Tax starts for you. If your 2025 to 2026 qualifying income was over £30,000, that is 6 April 2027.
Sources
Last checked 22 October 2026.
- Create digital records, GOV.UK
- Send quarterly updates, GOV.UK
- Choose the right software for Making Tax Digital for Income Tax, GOV.UK
- Check if you need to use Making Tax Digital for Income Tax, GOV.UK
Changes to this guide
- 22 October 2026: Published.
This guide is general information written from the official sources listed above and checked on 22 October 2026. It is not legal, tax or financial advice, and Plainfiles is not endorsed by any government body. Rules change, so check the linked official pages for your own situation. Written and designed by Plainfiles with the help of artificial intelligence (AI) tools, then checked against the official legislation and guidance listed in the sources. How we write and check our guides.