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Report Xero Everything You Need To Know About Bridging Software

Everything You Need To Know About Bridging Software

(and why it’s not likely to be a suitable long term solution)

Bridging software allows data to transfer through to HMRC from spreadsheets via ‘digital links’. They’re an interim solution for businesses who need to comply with Making Tax Digital for VAT regulations, but who don’t want to use full MTD software. Even though bridging software may look like an attractive short-term solution to help you with MTD-compliance, in the long run it may well mean more work for less reward.

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This guide covers:

  • What MTD bridging software is and how to use it, including a look at ‘digital links’ and how they work
  • How bridging software compares to full Making Tax Digital software
  • The pitfalls of bridging software for your practice and how to communicate the pitfalls to your client

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