Spreadsheet vs Landlord Tax Software for MTD: Which Is Right? (2026)
Last updated 24 June 2026 · 8 min read · By the LandlordTaxAi Editorial Team
The short answer
You can keep a spreadsheet under Making Tax Digital — but only if it meets the digital-records rules and connects to HMRC through bridging software via digital links. Dedicated landlord tax software costs more but automates data entry and reduces errors. The right choice depends on your portfolio size and appetite for admin.
Plenty of landlords have run their lettings on a trusty spreadsheet for years, and the big MTD question is: can I keep it? The answer is yes — with conditions. But whether you should is a different question, and it comes down to how much manual work you’re willing to do.
This guide compares spreadsheets (plus bridging software) against dedicated landlord tax software for 2026. For the spreadsheet rules in detail, see spreadsheet record rules under MTD.
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MTD Threshold Checker
See whether you need MTD-compatible records (spreadsheet + bridging or software), and from when.
Result
- Total qualifying income
- £28,000
- You must use MTD for Income Tax
- From 6 April 2028
Spreadsheets need bridging software and a digital link. Thresholds £50k/£30k/£20k. Estimate only.
Can you keep a spreadsheet? Yes — with bridging software
MTD doesn’t ban spreadsheets, but it does require digital records and a digital link all the way to HMRC. A spreadsheet on its own can’t submit to HMRC, so you pair it with bridging software that reads your figures and files them.
Crucially, the connection must be a genuine digital link — you can’t manually retype totals from your spreadsheet into the filing tool. That would break the rules.
Copy-pasting or retyping figures breaks the digital-link requirement. The spreadsheet and the bridging software must be connected so data flows without manual re-entry. See MTD bridging software for Excel.
Spreadsheet vs dedicated software
Both routes are valid and HMRC-compatible (with bridging for the spreadsheet). They trade cost against effort and risk.
| Factor | Spreadsheet + bridging | Landlord tax software |
|---|---|---|
| Cost | Low (often just the bridging tool) | Higher monthly subscription |
| Data entry | Manual — you type everything | Automated via bank feeds |
| Error risk | Higher — formulas and typos | Lower — automated categorisation |
| Best for | Confident, organised, few properties | Busy or multi-property landlords |
| Maintenance | You maintain the template | Provider handles updates |
A spreadsheet keeps costs down but puts the work — and the risk of mistakes — on you. Software costs more but does the heavy lifting and reduces the chance of an error reaching HMRC.
Which should you choose?
The decision usually comes down to portfolio size, how much you value your time, and how comfortable you are with spreadsheets.
Keep the simplicity, lose the manual work
LandlordTaxAi gives you spreadsheet-level simplicity with none of the typing — it reads your bank statements, categorises them and keeps MTD-ready records automatically.
See how it worksA worked example
Two landlords decide between a spreadsheet and dedicated software for April 2026.
| One flat, confident with Excel | Spreadsheet + HMRC-recognised bridging tool |
| Six properties, limited time | Dedicated software with bank feeds |
| Hates admin, fears mistakes | Software, for automation and lower risk |
| Both must | Keep digital records with an unbroken digital link to HMRC |
The single-flat, spreadsheet-confident landlord can stay low-cost with bridging; the busy portfolio landlord saves time and reduces risk with dedicated software.
Frequently asked questions
Can landlords still use spreadsheets under MTD?
Yes — but the spreadsheet must meet the digital-records rules and connect to HMRC through bridging software via a digital link. You can’t manually retype figures into the filing tool.
What is bridging software?
A tool that reads the figures from your spreadsheet and submits them to HMRC, providing the required digital link so you can keep using your spreadsheet.
Is a spreadsheet cheaper than software?
Usually, yes — often just the cost of the bridging tool. But you do all the data entry manually, which takes time and carries more risk of error.
When is dedicated software worth it?
When you have several properties, lots of transactions, limited time, or want to minimise errors. Bank feeds and automated categorisation save real effort.
What breaks the digital-link rule?
Manually copying, pasting or retyping figures between your spreadsheet and the filing software. The data must flow digitally without re-entry.
Does the spreadsheet itself need to follow rules?
Yes. It must be a genuine digital record of your income and expenses — not a tidy-up done once a year from paper.
Written and reviewed by the LandlordTaxAi Editorial Team. Our guides are reviewed against current HMRC guidance and updated when the rules change. Operated by LandlordTaxAi, United Kingdom. Follow us on LinkedIn.
Last reviewed: 24 June 2026 · Researched against primary UK sources for the 2026/27 tax year: https://www.gov.uk/guidance/find-software-that-works-with-making-tax-digital-for-income-tax; https://www.gov.uk/guidance/check-when-to-sign-up-for-making-tax-digital-for-income-tax; https://makingtaxdigital.campaign.gov.uk/making-tax-digital-software/. This article is informational only and does not constitute tax advice. Check the latest details on GOV.UK or with a qualified accountant.