Using untied as bridging software for MTD
untied is able to act as bridging software - this brings data from your existing digital records and allows it to be sent to HMRC. The records can't be subject to rekeying etc.
What bridging means
In the context of Making Tax Digital (MTD), bridging software is a digital tool that acts as a connector between a business’s existing records (most commonly Excel spreadsheets or older, non-compliant software) and HMRC’s digital systems
It allows businesses to maintain their current, familiar bookkeeping methods while complying with MTD regulations that require digital submission.
HMRC requirements - in-year
MTD requires that data is not manually re-typed or copied and pasted when moving from your records to HMRC. When you use "untied" as bridging software, "untied" extracts data from a spreadsheet and submits it to HMRC.
HMRC requirements - end of year
However you keep records, HMRC require you to use software for your end of year filing, not just the in-year reporting. This will need to include all income sources that will go on your tax return.
The advantages of choosing a product that includes bridging and support for the year-end process
A lot of bridging products are designed just for the in-year quarterly updates. This will mean you'll also need to find a product for the end-of year process. It can involve multiple software products, and potentially overlapping data.
By choosing "untied" - you can also use the same product for the end of year filings. It's all included in the subscription.
Using bridging for your in-year sources (self-employment and property)
The most common use will be in-year, as part of your quarterly updates (these are year-to-date reports of your income and expense totals for self-employment and property income).
You continue to manage your accounts in Excel, Numbers, Google Sheets etc. When it is time to file, you open "untied" and import the data - you can do this as totals because your core records are being kept in the spreadsheet (as back-up you may choose to attach your spreadsheet but this is not required).
Using bridging for other income
At the end of the year (or as you go), you can also import from a spreadsheet for other sources where there would normally be a transaction, such as:
- Dividends
- Interest income
- Gift aid donations
- Pension contributions
The import is NOT an HMRC requirement (you can add the totals manually) as these income sources are outside the mandated sources. But you may find it helps if you've been keeping track of things as you go on a spreadsheet.
In each case you'll need to tag the totals - it will take a few seconds to do so (we don't yet do matching of tags, but will look at that for the future).
Can I import data for more than one source in one go?
In "untied" the answer is yes! if you have self employment income, property income, and other transactions such as investment income, gift aid etc, they all be imported from one spreadsheet.
Where you may not need to use bridging - because of pre-population
Some data is pre-populated from HMRC, specifically relating to:
- employment income
- pension income (state pension and private pension)
Where you not be able to use bridging - and will enter the data straight into "untied"
For some income sources, there is not a standard transaction being created. You'll need to enter the data as either a manual transaction or into a form in untied. This is particularly the case for certain reliefs etc.
Can I move from bridging into record keeping in the future?
Yes! Once you're using "untied" you can choose how you want to manage this in the future.
How to upload your data into "untied"
You'll need to have your records in a spreadsheet that is saved as a CSV or XLSX in a way that untied can import.
See how to import transactions into untied. You will need to make sure they are tagged once in untied.
(A screenshot of the options is shown below - if you're logged in you can also click here)
Alternatively, if you are creating records in untied, you could attach a spreadsheet as supporting information to a manual transaction.