# Using MTD bridging software? What e-invoicing changes > Bridging software files VAT returns from spreadsheets but cannot send or receive e-invoices. What the 2029 mandate means for bridging users and your options. - Canonical URL: https://einvoices.uk/news/mtd-bridging-software-e-invoicing - Published: 23 October 2026 (2026-10-23) - Last updated: 23 October 2026 (2026-10-23) (not updated since publication) - Author: Floris Lindenaar, Editor, e-invoicing expert (https://einvoices.uk/authors/floris-lindenaar) - Publisher: einvoices.uk (https://einvoices.uk) - Type: Guide - Topics: Making Tax Digital, Software, Small business - Language: en-GB (UK English); covers the United Kingdom ## Sources - [VAT Notice 700/22: Making Tax Digital for VAT](https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat) - [Find software that's compatible with Making Tax Digital for VAT](https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-vat) - [Promoting electronic invoicing across UK businesses and the public sector: consultation response](https://www.gov.uk/government/consultations/promoting-electronic-invoicing-across-uk-businesses-and-the-public-sector/outcome/promoting-electronic-invoicing-across-uk-businesses-and-the-public-sector-consultation-response) - [Budget 2025 (HTML)](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html) - [Tax update 2026: simplification, modernisation and fairness summary](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary) - [Preparing for 2029's mandatory e-invoicing (Financial Accountant)](https://financialaccountant.co.uk/features/uk-e-invoicing-mandate-for-accountants/) ## Key points - Bridging software connects spreadsheets to HMRC so you can file MTD VAT returns. It does not create, send or receive invoices. - The 2029 mandate is about the invoices themselves, so bridging users will need a separate way to issue and receive e-invoices. - Under MTD rules, invoices do not have to be kept in your MTD software, and sales invoicing software outside your electronic account does not need a digital link. - You can keep bridging and add an e-invoicing tool, or move to accounting software that does both. - Whether HMRC's MTD software finder will show e-invoicing capability has not been announced. --- **Bridging software lets you file Making Tax Digital VAT returns from a spreadsheet. It does not create, send or receive invoices, so on its own it will not meet the 2029 e-invoicing mandate.** From April 2029 VAT invoices must be issued "in a specified electronic format". If you raise invoices in Word or Excel and file through bridging software, you will need an e-invoicing tool as well, or software that does both jobs. This guide is for businesses and bookkeepers in exactly that set-up. For the wider comparison of the two regimes, see [e-invoicing vs Making Tax Digital](https://einvoices.uk/news/e-invoicing-vs-making-tax-digital). ## What bridging software does, and does not do HMRC's VAT Notice 700/22 defines bridging software as "a digital tool that incorporates the relevant Making Tax Digital APIs needed to connect accounting software to HMRC systems." It also recognises API-enabled spreadsheets, which either work with other software to submit returns or keep the records and submit directly. | Job | Bridging software | E-invoicing (from 2029) | |---|---|---| | Keep digital VAT records | No, your spreadsheet does | Not its job | | Send the VAT return to HMRC | **Yes** | Not its job: no real-time reporting at launch | | Create a VAT invoice | No | **Yes**, as structured data | | Send it to your customer | No | **Yes**, through a Peppol [Access Point](https://einvoices.uk/glossary#access-point) | | Receive supplier invoices | No | **Yes** | The mandate touches your sales and purchase ledgers, not your VAT return. That is why a bridging user is affected even though their MTD filing works perfectly well. ## How many people does this affect? The government asked consultation respondents whether they used bridging software. "Around half of respondents reported that they do not use bridging software", with the rest split between users and those who did not say. The government said this helps it understand "what tools may be required to facilitate adoption of e-invoicing and ensure that the systems work well together." It has not published a count of bridging users. Some respondents also said that "if e-invoicing can work well alongside MTD that would make the adoption process easier". Financial Accountant reported in January 2026 that one e-invoicing vendor's chief executive expects bridging users to "make the switch to e-invoicing vendors". That is a commercial view, not government policy. ## Your two options ### Option 1: keep bridging, add an e-invoicing tool You carry on with your spreadsheet and bridging software for MTD, and use a separate invoicing tool or portal to send and receive e-invoices. - **Good for:** low invoice volumes, a well-built spreadsheet you trust, or an accountant who maintains it. - **Watch out for:** two places to enter the same customer and invoice, and the risk of the two drifting apart. - **Ask the tool:** can it export invoice data as CSV or another file your spreadsheet can import? Can it receive supplier invoices too, not only send? ### Option 2: move to accounting software that does both You switch to an accounting package that keeps your MTD records, files your VAT return and sends and receives e-invoices over Peppol. - **Good for:** growing volumes, or if you already find the spreadsheet fiddly. - **Watch out for:** the migration itself. Pick a VAT quarter end to switch and bring over opening balances and customer lists. - **Check:** the package's Peppol support in writing, using our [software checklist](https://einvoices.uk/news/check-accounting-software-peppol-support). The consultation response says the government is "aware of several MTD providers focused on the small business market that are already able to provide e-invoicing services". It does not name them, and we do not either. ## What about digital links? Under MTD for VAT, once data is in the software that keeps your "electronic account", any further transfer must use a digital link. Notice 700/22 accepts linked cells, "XML, CSV import and export, and download and upload of files", automated transfer and API transfer. It does **not** accept "cut and paste" or "copy and paste". Two points from the notice matter for option 1: 1. **Invoices do not have to live in your MTD software.** The notice says you must keep additional records "such as invoices", but "you do not have to keep these digitally" within the MTD records. Your e-invoices still need to be kept for 6 years under normal VAT rules. See [e-invoice archiving](https://einvoices.uk/news/e-invoice-archiving-retention-uk). 2. **The invoicing tool may sit outside the digital journey.** The notice says VAT information "may be captured and retained in other software (for example, sales invoicing software ...). However, if this software is not used to maintain your electronic account, there is no requirement for a digital link to be used when data is transferred to the electronic account." So entering e-invoice totals into your spreadsheet can be acceptable as the first entry into your electronic account. A file import is still the better habit: fewer typing errors, and it works either way. If you are not sure where your electronic account begins, ask your accountant or check Notice 700/22 section 3. ## Confirmed and not yet confirmed | Point | Status | |---|---| | VAT invoices in a specified electronic format from April 2029 | **Confirmed** | | Peppol as the core interoperability network | **Confirmed** (June 2026) | | No real-time reporting to HMRC at launch | **Confirmed** | | Any change to MTD for VAT rules or bridging software because of e-invoicing | **Not announced** | | HMRC's software finder showing e-invoicing capability | **Not announced** | | Whether bridging providers add e-invoicing | Up to each provider | The implementation roadmap is due at Budget 2026 on 28 October 2026. ## Questions to ask your bridging provider 1. Do you plan to offer sending and receiving of e-invoices over Peppol? By when? 2. If not, which e-invoicing tools can export data in a format your product imports? 3. Will you keep supporting bridging after April 2029? 4. What will it cost? ## What to do now 1. **Write down how you invoice today:** template, PDF, paper, and how many a month. 2. **Ask your bridging provider** the questions above, in writing. 3. **Decide which option fits** once the roadmap is out. If you are already thinking about leaving the spreadsheet, the mandate is a natural moment. 4. **Clean up customer data**, including VAT numbers. See [master data clean-up](https://einvoices.uk/news/master-data-cleanup-e-invoicing). 5. **Read the next step** for template users: [invoicing from Excel or Word](https://einvoices.uk/news/invoicing-from-excel-or-word-e-invoicing-2029), and check your overall position with our [readiness score](https://einvoices.uk/tools/readiness-score). ## Frequently asked questions ### Can bridging software send e-invoices? Not as bridging software. HMRC defines bridging software as a tool that uses the MTD APIs to connect your records to HMRC for VAT returns. Some providers may add e-invoicing features, so ask yours directly. ### Can I keep my VAT spreadsheet after 2029? Nothing announced so far requires you to stop keeping MTD records in a spreadsheet. The mandate changes how VAT invoices are issued and received, so you would need an e-invoicing tool alongside it. ### Do I need a digital link between my e-invoicing tool and my spreadsheet? Under VAT Notice 700/22, if the invoicing software is not used to maintain your electronic account, no digital link is required when data moves into it. If the invoicing tool does form part of your electronic account, later transfers must be digital, such as a CSV import, not copy and paste. ### Will HMRC's MTD software list show which products do e-invoicing? Not announced. HMRC's software finder currently covers record-keeping and bridging software for MTD for VAT. --- How to cite: "Using MTD bridging software? What e-invoicing changes", einvoices.uk, 23 October 2026, https://einvoices.uk/news/mtd-bridging-software-e-invoicing einvoices.uk is an independent publication and is not affiliated with HMRC or the UK Government. Nothing here is tax advice; check the sources and official GOV.UK guidance before acting.