Spreadsheets are the tool of choice for many landlords managing their property finances. They are flexible, familiar, and free. But Making Tax Digital introduces a digital submission requirement that a standard spreadsheet cannot fulfil on its own. This guide explains what that means in practice, what options landlords have, and whether continuing to use spreadsheets is realistic under MTD.
A spreadsheet is excellent for tracking income and expenses. The problem is that HMRC requires quarterly updates and the Final Declaration to be submitted through software that connects directly to HMRC's systems via an approved API. A standard Excel or Google Sheets file cannot make that connection.
This means that even if your spreadsheet contains perfectly organised and accurate records, you cannot upload it to HMRC directly. Something needs to bridge the gap between your spreadsheet and HMRC's systems.
HMRC requires that your records are kept digitally and that data flows from those records to your submission without manual re-keying. The key rule is that figures should not be transcribed by hand from one system to another, there must be a digital link between your records and the submission.
A spreadsheet that is read automatically by bridging software satisfies this requirement, because the data flows digitally. A spreadsheet where you manually type the totals into a separate submission tool does not satisfy the requirement, because the data flow is broken by a manual step.
Yes. There is nothing to stop you maintaining a spreadsheet as a personal reference or management tool alongside your MTD software. Many landlords do this, they use dedicated software for HMRC submissions and keep a spreadsheet for their own analysis or portfolio tracking.
The important thing is that your HMRC submissions come from the approved software, not the spreadsheet alone.
If you currently use spreadsheets to manage your rental finances, you can continue to do so, but use to to help with your record keeping and use a dedicated MTD software that also handles submissions.
SimplifyMTD is dedicated landlord software that handles both record-keeping and HMRC submissions in one place, removing the need for bridging tools or spreadsheet compatibility concerns.