BEST VAT BRIDGING SOFTWARE IN THE UK

VAT bridging software explained

VAT bridging software connects spreadsheets or legacy accounting software to HMRC so UK businesses can submit VAT returns under Making Tax Digital rules.

Under MTD, all VAT-registered businesses must submit returns digitally through HMRC-compatible software. But you don’t need to switch to a full accounting platform – a bridging tool creates the required digital link between your existing records and HMRC.

In practice, this means you keep your accounts exactly the way you always have – in Excel, Google Sheets, Sage, or whatever you prefer – and the bridging software simply handles the final step of transmitting the nine VAT boxes to HMRC.

Who needs VAT bridging software?

Bridging software is the right choice if any of the following apply to you:

• You keep accounts in a spreadsheet – Excel, Google Sheets, Apple Numbers, or CSV files. These can’t submit to HMRC on their own, so you need a bridging tool to create the digital link.
• You use older accounting software – packages like Sage 50 (older versions), TASBooks, or other legacy systems that predate Making Tax Digital. Rather than upgrading or switching, bridging software lets you keep what already works.
• You’re an accountant or bookkeeper filing for multiple clients. Many bridging tools offer agent modes and bulk pricing designed specifically for practice workflows.
• You want simple, low-cost MTD compliance without the expense or complexity of full accounting software. If all you need is to submit your VAT return, a bridging tool does exactly that – nothing more, nothing less.

Bridging software vs accounting software

This is the most common question businesses ask when getting started with MTD, so it’s worth understanding the difference clearly.

Accounting software – platforms like Sage, Xero, or QuickBooks – provides a complete bookkeeping system: invoicing, payroll, bank reconciliation, reporting, and built-in MTD VAT submission. These typically cost £20–£40+ per month.

Bridging software – tools like #GoFile, Easy MTD VAT, or 123 Sheets – does one thing: submit your VAT return to HMRC. It’s designed for businesses that already have a bookkeeping method they’re happy with and just need the digital link.

How does bridging software actually work?

The process is straightforward. Most bridging tools follow the same basic workflow:

1. Calculate your VAT figures in your existing system (spreadsheet, Sage, etc.)
2. Enter the nine VAT boxes into the bridging software – or import them directly from your spreadsheet
3. Review and submit to HMRC through the official Making Tax Digital API
4. Receive confirmation – HMRC sends back a receipt with your submission reference

The entire process typically takes a few minutes. There’s no complex setup, no training required, and no change to how you keep your records.

What about HMRC’s free filing tools?

HMRC previously offered a basic free filing service through the VAT online account, but this has been deprecated since Making Tax Digital became mandatory. You can no longer submit VAT returns directly through the HMRC website. All submissions must go through MTD-compatible software – which is why bridging tools exist.

Price

Bridging tools range from very affordable (£25 per year) to enterprise-level pricing. Since the core function – submitting nine boxes to HMRC – is the same across all providers, price should be a major factor.

Watch out for per-submission charges. Some tools charge each time you file a return, which adds up quickly. A flat annual fee is usually the better deal – it means you pay the same whether you file quarterly, monthly, or need to resubmit.

Ease of use

The best bridging software should take minutes to learn, not hours. You should be able to sign up, connect to HMRC, and submit your first return in a single sitting.

Be wary of tools that require complex installation, desktop software downloads, or extensive configuration. Cloud-based tools generally offer the smoothest experience – you open your browser, log in, and file.

Spreadsheet compatibility

If you use Excel, Google Sheets, or Apple Numbers, make sure the bridging tool supports your workflow. Some tools only work with Excel; others accept any spreadsheet format or CSV.

Also check how the integration works. Some tools require you to use a specific template; others let you import directly from any spreadsheet layout. The more flexible the tool, the less you’ll need to change your existing processes.

Legacy software support

If you use Sage 50, Sage 200, QuickBooks, TASBooks, or another older accounting package, check that the bridging tool works alongside it. Most bridging tools accept manually entered figures, but some also offer direct integrations or import features that save time.

Accountant and agent features

If you file VAT returns for multiple clients, look for these features:

• Multi-company support – switch between clients without logging in and out
• Bulk pricing – per-client pricing that scales as your practice grows
• Agent authorisation – connect to HMRC as an agent on behalf of your clients
• Submission history – keep a clear audit trail of every return filed

Cloud vs desktop

Cloud-based bridging tools work on any device with a browser – Windows, Mac, tablet, or phone. There’s nothing to install or update.

Desktop tools require installation on a specific machine (usually Windows only). They can be faster for some workflows, but you lose the flexibility of filing from anywhere – and you’re responsible for keeping the software up to date.

Customer support

Check that the provider offers responsive support – ideally from people who understand UK VAT, not just generic tech support. This matters most around filing deadlines when HMRC systems can be under pressure and questions need quick answers.

Common mistakes to avoid

Here are the pitfalls we see most often when businesses choose bridging software:

• Paying for features you don’t need. If you only need VAT submission, don’t pay for a full accounting platform.
• Choosing a tool that locks you in. Good bridging software should work alongside your existing systems, not replace them.
• Ignoring ongoing costs. A free trial is great, but check what happens when it ends. Some tools have steep renewal prices.
• Overlooking HMRC recognition. Make sure the tool is listed on HMRC’s official register of MTD-compatible software.

Quick comparison

Several VAT bridging tools are available in the UK, ranging from simple spreadsheet connectors to larger accounting platforms. The tools below are among the most commonly used for submitting VAT returns under Making Tax Digital. *Free when used with VT Transaction+ bookkeeping software.

#GoFile

Best for: Simple VAT filing without accounting software. Ideal for businesses, sole traders, and accountants.

#GoFile is one of the UK’s most established VAT bridging tools, trusted by over 50,000 businesses. It’s designed to do one thing well: submit VAT returns to HMRC under Making Tax Digital.

The interface is deliberately simple. You log in, enter your nine VAT boxes (or import them from a spreadsheet), review the figures, and submit. Most users complete their first return within minutes of signing up.

Key features:

• HMRC-recognised MTD bridging software
• Works with spreadsheets (Excel, Google Sheets, Apple Numbers)
• Works with legacy software (Sage 50, Sage 200, QuickBooks, TASBooks, and more)
• Cloud-based – nothing to install, works on any device
• Agent/accountant mode for managing multiple companies
• Free trial with full feature access

Price: £49.99 +VAT per year for individuals and companies. From £4.99 +VAT per client per month for agents and accountants.

Customer rating: Rated 4.8/5 from thousands of reviews. Read our reviews on Trustpilot.

Try #GoFile free →

Why many businesses choose #GoFile

#GoFile focuses purely on VAT and tax filing rather than bookkeeping. This makes it particularly popular with businesses that keep records in spreadsheets or legacy accounting software but need a fast, reliable way to submit VAT returns to HMRC. There’s no learning curve, no unnecessary features, and no pressure to change how you manage your accounts.

What #GoFile doesn’t do: #GoFile is not accounting software. It doesn’t provide invoicing, payroll, bank reconciliation, or financial reporting. If you need a full bookkeeping system with built-in VAT filing, a platform like Xero or QuickBooks would be a better fit. #GoFile is specifically for businesses that already have their bookkeeping sorted and just need the MTD submission.

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Easy MTD VAT

Best for: Budget-conscious businesses looking for the cheapest possible VAT submission.

Easy MTD VAT is a simple desktop application that connects to HMRC for VAT return submissions. Developed by Eldonsoft, it’s been around since the early days of Making Tax Digital and has built a loyal user base among sole traders and micro-businesses who want no-frills filing at the lowest possible cost.

Key features:

• Direct VAT return submission to HMRC
• Desktop-based (Windows only)
• Spreadsheet import (Excel and CSV)
• Basic VAT return history and obligation tracking
• One-off and annual licence options

Where it’s strong: Very low cost for straightforward quarterly filing. The interface is minimal but functional – if all you need is to type in nine boxes and submit, it does the job.

Considerations: Desktop-only (not cloud-based), so you’re tied to one Windows machine. Limited multi-company features make it less suited for accountants managing many clients. No Mac, mobile, or browser-based access.

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123 Sheets

Best for: Accountants and bookkeepers who work heavily with Excel and want to submit directly from their spreadsheet.

123 Sheets takes a different approach to bridging: instead of a separate web app, it installs as an Excel add-in. This means you can prepare your VAT figures and submit to HMRC without leaving Excel. For practices that live and breathe Excel, this can be a genuinely efficient workflow.

Key features:

• Excel add-in for direct submission from within the spreadsheet
• Designed for accountant workflows with multi-client support
• Pulls figures directly from designated cells – no re-typing
• HMRC-recognised for MTD VAT

Where it’s strong: If Excel is your primary workspace and you want a seamless submit-from-spreadsheet experience, 123 Sheets does this better than most.

Considerations: Requires a desktop Excel installation (Windows), so it won’t work with Google Sheets, Apple Numbers, or from a mobile browser. Not cloud-based, which limits flexibility if you file from multiple locations.

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Avalara

Best for: Larger businesses or those with international VAT obligations across multiple countries.

Avalara (formerly VATBox) provides tax compliance automation including MTD VAT filing. It’s built for enterprises with complex, cross-border VAT requirements – multi-country filings, automated tax determination, and integration with ERP systems like SAP and Oracle.

Key features:

• Automated tax calculation and compliance across multiple jurisdictions
• ERP integrations (SAP, Oracle, NetSuite)
• MTD VAT filing for UK returns
• Real-time tax determination for e-commerce

Where it’s strong: If you operate across multiple countries and need a single platform for global VAT compliance, Avalara is one of the few tools that handles this at scale.

Considerations: Significantly higher price point and more complex setup than a dedicated bridging tool. Requires onboarding and configuration. If you only need straightforward UK VAT filing, Avalara is far more than you need.

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BTCSoftware

Best for: Accountancy practices that need VAT filing combined with broader practice management.

BTCSoftware provides VAT filing alongside Corporation Tax, Self Assessment, and practice management tools. It’s designed as an all-in-one platform for accountancy firms rather than a standalone bridging tool.

Key features:

• MTD VAT filing integrated into practice workflow
• Corporation Tax and Self Assessment returns
• Client management and document storage
• HMRC-recognised across multiple tax types

Where it’s strong: If your practice needs a single platform for VAT, Corporation Tax, and Self Assessment, BTCSoftware offers that breadth.

Considerations: More comprehensive (and more expensive) than a pure bridging tool. If you only need VAT submission, a dedicated bridging tool will be simpler and cheaper.

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DataDear

Best for: Businesses and accountants who want deep Excel integration with cloud accounting platforms.

DataDear connects Excel directly to Xero, QuickBooks Online, and HMRC for MTD filing. It works as an Excel add-in, letting you pull data from your accounting platform into spreadsheets and submit VAT returns from within Excel.

Key features:

• Excel add-in with Xero and QuickBooks Online integration
• Pull live accounting data into spreadsheets
• MTD VAT submission from Excel
• Multi-entity support for accountants

Where it’s strong: If you already use Xero or QuickBooks but want to do reporting and VAT work in Excel, DataDear bridges both worlds effectively.

Considerations: Requires an Excel desktop installation. Primarily useful if you’re already on Xero or QuickBooks – less relevant if you’re purely spreadsheet-based. Pricing is higher than simple bridging tools.

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VT Software

Best for: Accountants looking for free or very low-cost MTD VAT filing alongside basic bookkeeping.

VT Software offers a suite of tools for accountants, including VT Transaction+ for bookkeeping and a free MTD VAT filing add-on. It’s been popular with small practices for years due to its no-cost entry point.

Key features:

• Free MTD VAT filing (when used with VT Transaction+)
• Desktop-based bookkeeping and accounts production
• Long track record with UK accountants

Where it’s strong: Hard to beat on price if you’re already using VT Transaction+ for bookkeeping. The MTD VAT add-on comes at no extra cost.

Considerations: Desktop-only (Windows). The free VAT filing is tied to the VT software ecosystem – it’s not a standalone bridging tool you can use with any spreadsheet. The interface is functional but dated compared to modern cloud tools.

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Absolute

Best for: Accountancy practices already using Absolute’s tax and accounts production software.

Absolute (IRIS) offers MTD VAT filing as part of its broader suite of tax, accounts, and practice management tools for accountants. Like BTCSoftware, it’s a platform play rather than a standalone bridging tool.

Considerations: Best suited to practices already invested in the IRIS/Absolute ecosystem. Not practical as a standalone VAT bridging tool for individual businesses.

Setting up VAT bridging software

Getting started with bridging software is straightforward. Here’s what to expect, using #GoFile as an example:

1. Create an account – sign up at secure.gofile.co.uk. You’ll need your VAT registration number.
2. Authorise with HMRC – the software will redirect you to HMRC’s website where you grant permission for VAT submissions. This is a one-time step.
3. Enter your VAT figures – type in your nine VAT boxes, or import them from your spreadsheet.
4. Review and submit – check the figures are correct, then submit directly to HMRC.
5. Done – you’ll receive a confirmation from HMRC with your submission reference number.

Understanding HMRC authorisation

When you first connect bridging software to HMRC, you’ll be asked to grant authority for the software to act on your behalf. This is done through HMRC’s own website – your bridging software never sees your Government Gateway password.

The authorisation typically lasts 18 months. After that, you’ll need to reauthorise – most tools will prompt you when this is needed.

If you’re an agent filing for clients, each client will need to grant authority separately. This can be done through the agent services account on HMRC’s website.

Filing from a spreadsheet

If you keep your accounts in a spreadsheet, the workflow with bridging software is simple:

1. Calculate your VAT figures in your spreadsheet as normal
2. Enter the totals for each of the nine VAT boxes into your bridging software
3. Submit to HMRC

Some tools also let you import directly from a spreadsheet file, which saves the step of manually entering figures. #GoFile supports Excel, Google Sheets, Apple Numbers, and CSV files.

Filing from legacy accounting software

If you use Sage 50, Sage 200, QuickBooks, TASBooks, or another older package, the process is similar:

1. Generate your VAT return in your accounting software as you normally would
2. Note the figures for each of the nine boxes
3. Enter them into your bridging software and submit to HMRC

This means you can continue using the accounting software you know and trust – without upgrading to a newer (and usually more expensive) version just for MTD compliance.

After you submit

Once your VAT return is submitted through bridging software, HMRC processes it just like any other MTD submission. You can:

• View your submission confirmation and reference number
• Check your VAT obligations and payment dates
• See your VAT liability position
• Track your submission history

If you owe VAT, the payment deadline is the same as always: 1 month and 7 days after the end of your VAT period. If HMRC owes you a refund, they typically process it within 10 working days.