Many businesses already keep their VAT workings in Excel. These answers explain how you can carry on using your spreadsheets with Making Tax Digital (MTD) for VAT, and how AccountsDesk bridges them to HMRC.
Can I use Excel for Making Tax Digital?
Yes. You can keep your VAT records and calculations in a spreadsheet. What MTD changes is how the figures reach HMRC: you can no longer type them into the HMRC website, so the VAT return has to be sent from software. Bridging software connects your spreadsheet to HMRC so you can keep using Excel.
What is bridging software?
Bridging software takes the figures from your spreadsheet and submits them to HMRC digitally. You keep your own workings, and the software handles the connection to HMRC's Making Tax Digital gateway.
What is HMRC bridging software?
It is the name commonly used for software that links a spreadsheet to HMRC's MTD service so that a VAT return can be submitted from your spreadsheet figures. AccountsDesk is bridging software for Excel spreadsheets. You connect your AccountsDesk account to HMRC once, then send your returns from the MTD VAT dashboard.
How do I submit my VAT return online using a spreadsheet?
The process takes four steps:
- Open VAT Spreadsheets from the left-hand navigation in your AccountsDesk account.
- Add a spreadsheet, enter the VAT period start and end dates, and upload your VAT workings file.
- Process the spreadsheet and map the cells that hold your VAT return boxes 1 to 9.
- Import the VAT data, then submit it to HMRC from the MTD VAT dashboard.
The full walkthrough with screenshots is in Excel spreadsheet bridging for MTD VAT. For the submission itself, see how to submit VAT digitally.
Which spreadsheet file types can I use?
AccountsDesk supports both older and newer Excel formats (.xls and .xlsx) as well as open spreadsheet formats such as OpenDocument (.ods), so you do not need to convert most files before uploading.
Can I upload a CSV file?
No. CSV files are not supported. If your figures are in a CSV file, open it in Excel or another spreadsheet application and save it as an Excel or open-format spreadsheet, then upload that file.
Do I need to change my existing spreadsheet?
No. You do not need a special template. After uploading, you click the cells that hold your figures and tell AccountsDesk which VAT box each one belongs to. Only numeric cells can be mapped.
How does AccountsDesk know which VAT period my spreadsheet is for?
When you upload a spreadsheet you enter the VAT period start and end dates. These should match the obligation dates shown in your MTD VAT dashboard, which is how the spreadsheet is matched to the correct VAT return period. If you enter the wrong dates, you can edit them from the spreadsheet list.
Do I have to connect to HMRC first?
Yes. You need to authorise AccountsDesk to talk to HMRC before you can view your VAT obligations and submit returns. See how to connect to HMRC.
Can an accountant or agent submit VAT returns for several clients?
Yes. Agents can manage their clients from a single place. See managing all your clients as an agent.
Does bridging also work for MTD Income Tax (ITSA)?
Yes. AccountsDesk also lets you bring spreadsheet figures into your MTD ITSA quarterly updates. Read more about bridging software for VAT and ITSA and what is MTD ITSA.