Glossary definition

What is a bridging tool or bridging software?

In the context of Making Tax Digital, a bridging tool (or bridging software) is a small piece of software designed to create the final digital link between your business and HMRC so you can report your taxes digitally, as the legislation demands.

Notably, a bridging tool doesn’t take care of the other requirements for Making Tax Digital, such as digital record keeping, and it doesn’t ensure your systems are digitally linked.

This is why using many suggest bridging tools shouldn’t be used as anything other than a very temporary stopgap measure.

The ultimate guide to Making Tax Digital

Need help getting ready for Making Tax Digital? Download this free guide to learn about MTD for VAT, Income Tax and Corporation Tax, and what they mean for your business.

Get your free guide
27,023 readers have downloaded this guide
27,023 readers have downloaded this guide