MTD VAT bridging software vs accounting software (2026)

Both options meet Making Tax Digital

Under Making Tax Digital for VAT you must keep digital records, file through compatible software, and keep a digital link between your records and your return. HMRC does not sell software itself, and its old online VAT form has closed for almost all businesses.

Any product on HMRC's software finder can file your VAT return, whether it is full accounting software or bridging software. So the question is not which one is compliant. It is how much software you actually need.

Bridging software and accounting software side by side

For how bridging software works step by step, see our guide to VAT bridging software.

When accounting software is the better choice

• You want to send invoices and chase payments from the same system
• You want bank feeds, so transactions come in automatically
• You need profit and loss reports or management accounts during the year
• You have many transactions and a spreadsheet is becoming hard to manage
• Your accountant wants you on a particular package

If that is you, accounting software is worth the extra cost, and it files your VAT return too. You do not need bridging software as well.

When bridging software is enough

• You already keep your sales and purchases in Excel or Google Sheets
• You only pay for accounting software to file your VAT return
• Your business is simple, with a manageable number of transactions
• You are an accountant or bookkeeper filing for clients from your own working papers
• You want the lowest cost way to meet Making Tax Digital

You do not need both

Accounting software that is on HMRC's list already files your VAT return. Paying for bridging software on top adds nothing. The only time you would use both is if your accounting system cannot file VAT through Making Tax Digital: then you export the VAT totals and file them with bridging software.

Switching from accounting software to bridging

1. Check your next deadline and switch between returns, not halfway through one.
2. Keep your records digital: export your sales and purchases to a spreadsheet, or keep using your current system for records only.
3. Set up a VAT summary that works out the nine boxes from your records with formulas.
4. Connect the bridging software to HMRC with your Government Gateway sign-in.
5. Keep your old records for at least 6 years, even after you cancel the subscription.

What filing looks like with Swift VAT Pro

1. Connect to HMRC once and see your open VAT periods and due dates.
2. Download the sample CSV and copy its layout into your spreadsheet.
3. Upload your nine box totals. Box 3 and Box 5 are worked out for you, and every box is checked against HMRC's rules.
4. Submit, and keep HMRC's receipt reference.
5. Reminder emails arrive 4 days and again 3 days before each due date.

What it costs

• Single, £5 a month: one business, with one submission every 30 days included, which covers a quarterly return.
• Small Practice, £20 a month: up to 20 businesses and 3 users.
• Agent, £50 a month: up to 100 businesses and 5 users.

Every plan has a 7-day free trial with no card needed. See the pricing page for annual prices. To compare with what you pay now, check your current provider's price on their own website.

Final thoughts

Both options are compliant, so choose on what you need. If you want invoicing, bank feeds and reports, accounting software earns its price. If you only need to send your VAT return from a spreadsheet you already trust, bridging software does that job for far less.

Swift VAT Pro is VAT bridging software for spreadsheets: upload your 9 boxes as a CSV or Excel file and submit to HMRC.

Disclaimer: This guide gives general information, not advice for your business. If you are unsure which option suits you, speak to an accountant or contact HMRC.