🖥 MTD & Compliance📅 Published: 3 March 2026⏱ 6 min read

MTD Bridging Software Compared: Pricing, Pros and Cons for UK Therapists

If you keep your practice accounts in a spreadsheet, you do not need to switch to full accounting software to comply with Making Tax Digital. This guide compares the main bridging tools available to UK therapists — with verified pricing, honest pros and cons, and a clear decision guide.

New to MTD? Start here first: that guide explains mandatory dates, the four therapist profiles, and how to run HMRC's own selection tool before choosing any software. The complete MTD guide for psychotherapists →

What Is MTD Bridging Software?

MTD bridging software connects your existing spreadsheet to HMRC's systems. You keep recording income and expenses exactly as you do now. The software reads your totals and submits them to HMRC on your behalf, creating the mandatory digital link that MTD requires.

Only summary financial totals are transmitted to HMRC — not your full spreadsheet, not client names, not session records.

What breaks the digital link

Under MTD rules, it is not compliant to copy and paste figures manually, retype totals into a web form, or break the chain between your spreadsheet and HMRC at any point. Bridging software exists specifically to prevent this.

Can Psychotherapists Still Use Spreadsheets for MTD?

Yes. HMRC does not require you to move to dedicated accounting software. Spreadsheets remain compliant for MTD for Income Tax provided:

○Records are kept digitally throughout the year
○There is a continuous digital link between your records and what is submitted
○You use HMRC-recognised bridging software to make submissions

For most psychotherapists in private practice with straightforward income and expenses, a spreadsheet plus bridging software is the simplest and most cost-effective route to MTD compliance.

The Tools Compared

The five tools below are HMRC-recognised, spreadsheet-compatible, and have publicly available pricing. All information is taken from the vendors' own websites and verified at March 2026.

My Tax Digital

FreeWeb-based portal

A completely free HMRC-recognised tool supporting both MTD for Income Tax and MTD for VAT. You upload your spreadsheet via the web portal and the tool creates the required digital link before submitting to HMRC. No subscription, no trial period.

Supported formats: .xlsx, .xls, .ods, .csv. Apple Numbers users need to export first.

Pricing: Free for Income Tax quarterly submissions and Final Declaration. Free for VAT.

Pros

✓Completely free — no hidden costs
✓Supports multiple spreadsheet formats
✓Handles quarterly updates and Final Declaration
✓Covers sole traders and landlords
✓Supports both MTD ITSA and VAT

Cons

✗Web-based upload — not Excel-native
✗No open banking integration
✗Numbers users must export to a compatible format

In short: The most accessible starting point. If you are unsure which tool to use, this costs nothing to try. Visit My Tax Digital

Self Assessment Direct (VAT Direct)

Free basic tierSpreadsheet upload + optional bank feeds

Operated by Cirrostratus, this tool offers free MTD bridging alongside an optional cloud cashbook and open banking integration. It supports both Income Tax and VAT submissions, multiple VAT schemes including flat rate and partial exemption, and has an agents API for accountant access.

Pricing: Free basic bridging service. Pricing for premium features available on request at the vendor website.

Pros

✓Free basic service
✓Open banking integration available
✓Optional cloud cashbook
✓Supports flat rate and partial exemption VAT
✓Agents API for accountant access

Cons

✗Upload workflow — not Excel-native
✗More features than many therapists need
✗Premium pricing not publicly listed

In short: A good option if you are VAT registered or want the option of connecting a bank feed later. Visit Self Assessment Direct

123 Sheets

£19.75 / yearSpreadsheet upload

A low-cost paid bridging solution built specifically for spreadsheet users. At approximately £1.65 per month equivalent, it is the cheapest paid option among those reviewed. It covers both MTD for Income Tax and VAT within a single subscription and supports the widest range of spreadsheet formats.

Supported formats: Excel, Google Sheets, Apple Numbers, LibreOffice, OpenOffice.

Pricing: £19.75 per year for Income Tax. £19.75 per year for VAT. Covers multiple businesses per taxpayer.

Pros

✓Lowest cost paid option reviewed (~£1.65/month)
✓Widest spreadsheet format support including Google Sheets and Numbers
✓Covers Income Tax and VAT in one subscription
✓Supports multiple businesses
✓Supports flat rate and partial exemption VAT

Cons

✗Annual payment only — no monthly billing
✗Upload workflow required
✗No open banking

In short: A strong choice if you want paid software at minimal cost and use any spreadsheet format including Google Sheets or Apple Numbers. Visit 123 Sheets

VitalTax

£30/yr ITSA · £20/yr VATExcel Add-in (no upload required)

VitalTax is the only tool in this comparison that works as a native Excel Add-in. Rather than uploading a file to a web portal, you select the relevant cells in your own spreadsheet and submit directly via HMRC's API without leaving Excel. It also provides live tax calculations and supports agent accounts for practices that work with an accountant.

Pricing: £30 per year for MTD Income Tax. £20 per year per business for VAT. Annual billing only.

Pros

✓Submit directly from Excel — no upload or separate website
✓Live tax calculations inside your spreadsheet
✓Agent and multi-person account support
✓Clear, transparent pricing
✓Supports multiple businesses

Cons

✗Excel only — does not support Google Sheets or Numbers
✗No built-in bookkeeping or bank feeds
✗Annual billing only

In short: The best fit for therapists who work primarily in Excel and want to submit without touching a separate website. Visit VitalTax

AbraTax

ITSA free (pilot) · VAT from £96/yrSpreadsheet upload

AbraTax offers MTD Income Tax submissions free during its current pilot phase. Its VAT service is paid. It includes spreadsheet templates, live tax calculations, and a monthly billing option for VAT — making it the only tool in this list with month-by-month payment flexibility.

Supported formats: Excel (.xls templates provided).

Pricing: MTD Income Tax — currently free (pilot, subject to change). MTD VAT — £96 per year (annual) or £10 per month (monthly, equivalent to £120 per year). Agent features in development.

Pros

✓Income Tax currently free during pilot
✓Only option with monthly VAT billing flexibility
✓Spreadsheet templates included
✓Live tax calculations

Cons

✗Free ITSA pricing is a pilot — may change
✗VAT costs more than 123 Sheets at the annual rate
✗Excel only — no native Google Sheets support
✗Agent features still in development

In short: Worth considering if you are VAT registered and prefer to pay monthly rather than a full year upfront. Visit AbraTax

Side-by-Side Comparison

All data sourced from vendor websites at March 2026. Always verify current pricing and features before purchasing.

Feature	My Tax Digital	Self Ass. Direct	123 Sheets	VitalTax	AbraTax
ITSA cost (annual)	£0	£0	£19.75	£30	£0 (pilot)
VAT cost (annual)	£0	£0	£19.75	£20	£96 or £120
Monthly billing	✗	—	✗	✗	✓ VAT only
Excel native (no upload)	✗	✗	✗	✓	✗
Google Sheets	Via export	Via CSV	✓	✗	Via export
Apple Numbers	Via export	—	✓	—	—
Open banking	✗	✓	✗	✗	✗
Live tax calculations	✓	—	—	✓	✓
Final Declaration	✓	✓	✓	✓	✓
Agent / accountant access	Not detailed	✓ API	—	✓	In development
Flat rate VAT scheme	✓	✓	✓	—	—

— = not explicitly stated on vendor website at March 2026.

Need to know which of these tools works for your specific tax situation — for example if you also have employment income, investments, or are VAT registered? See the full profile-by-profile breakdown →

Pricing at a Glance

Tool	ITSA (annual)	Monthly equiv.	VAT (annual)	Monthly equiv.
My Tax Digital	£0	£0	£0	£0
Self Ass. Direct	£0	£0	£0	£0
123 Sheets	£19.75	~£1.65	£19.75	~£1.65
VitalTax	£30	~£2.50	£20	~£1.67
AbraTax	£0 (pilot)	£0	£96 annual / £120 monthly	£8 / £10

Prices verified from vendor websites at March 2026. AbraTax ITSA pricing is subject to change after the pilot period. Always confirm before purchasing.

Which Tool Should You Choose?

There is no single answer — it depends on how you work. Match your situation below.

Decision Guide

Match your situation to the right tool

I want to pay nothing at all and just need something that worksMy Tax Digital

I use Excel heavily and want to submit without leaving my spreadsheetVitalTax

I use Google Sheets or Apple Numbers and want the lowest possible paid cost123 Sheets

I am VAT registered and want open banking or accountant API accessSelf Ass. Direct

I am VAT registered and prefer to pay monthly rather than a lump sumAbraTax

I am still unsure — I want to try something free before committingMy Tax Digital

Still undecided? Use HMRC's own tool first

Before purchasing any software, run your own profile through HMRC's software selection tool. Only tick income sources that genuinely appear on your tax return. This gives you a filtered list of all HMRC-compatible options for your exact situation — not just the five tools reviewed here.

This guide does not cover full accounting platforms

Tools such as FreeAgent, Xero, and QuickBooks also support MTD but replace your spreadsheet rather than connecting to it. If you want bank feeds, invoicing, and automated categorisation those tools may be worth comparing. If you want to keep your spreadsheet unchanged, bridging software is the right route.

Frequently Asked Questions

Do psychotherapists have to use MTD bridging software?

No — bridging software is one option, not a requirement. You can also use full accounting software or any other HMRC-recognised tool. Bridging software is the right choice if you want to continue using a spreadsheet rather than moving to a new platform.

Is free MTD software good enough for a therapy practice?

For most sole-trader psychotherapists with straightforward income and expenses, yes. Tools like My Tax Digital are fully HMRC-recognised and handle both quarterly updates and the Final Declaration at no cost. The free tools in this guide are not trial versions — they are permanently free (subject to the pilot caveat for AbraTax).

Can psychotherapists still use spreadsheets for MTD?

Yes. HMRC does not require dedicated accounting software. Spreadsheets remain compliant provided records are kept digitally and there is a continuous digital link between your records and what is submitted to HMRC.

Can I switch tools later if I change my mind?

Yes. Your records remain in your own spreadsheet regardless of which bridging tool you use. Switching between bridging tools does not affect your records.

All software details, pricing, and HMRC compatibility are based on information published on vendor websites and HMRC's selection tool at March 2026. Features and pricing change regularly — always verify directly with the vendor before purchasing. This article does not constitute tax, legal, or financial advice. If you are unsure which MTD approach suits your practice, consult a qualified accountant.

Not Sure Which Tool Is Right for You?

I can run through your specific tax situation, identify which tools work for your profile, and set everything up so your first quarterly submission is straightforward and stress-free.

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