MTD software vs spreadsheets

Spreadsheets have run small-business bookkeeping for decades. Under Making Tax Digital, on their own, they no longer cut it. Here’s why.

Updated July 2026 · A general guide, not personal tax advice.

The digital-link requirement

MTD requires digital records and a digital link from those records to what you submit to HMRC. You can’t just read a number off a spreadsheet and type it into HMRC’s website — the data has to flow through compatible software without manual re-keying.

Where spreadsheets fall short

• No connection to HMRC — they can’t submit your updates or returns.
• Easy to break: a stray formula or wrong cell can quietly change your figures.
• No receipt capture, no mileage rules, no VAT threshold tracking.
• Manual re-typing at deadline time — exactly what MTD is designed to remove.

What to use instead

MTD-compatible software keeps your records, applies the tax rules for you, and files to HMRC directly — so quarterly updates are a click, not a rebuild. FTrak captures receipts with OCR, tracks mileage at HMRC rates, handles VAT and property, and submits under MTD. If you’ve outgrown the spreadsheet, that’s the upgrade.

Bringing your data across

Moving is straightforward — you can import your existing figures and export everything any time, so you’re never locked in. See how FTrak keeps it all in one place.