https://singletrackworld.com/forum/off-topic/making-tax-digital-aka-making-tax-more-complex-and-expensive-for-the-self-employed/#post-13664775

Quite a tangled web, what did your accountant say?

Personally I’m one person with one business linked to one (personal not business) bank account that I use solely for business transactions. I’ve linked that to a basic QuickBooks account and hope quarterly submissions are going to be a matter of pushing a button. 

We're in a similar position (but I do our tax and accounts rather than employing someone else).  I've signed up for, but not started using, Clearbooks.  £60+VAT per year seems reasonable and means it has some support (and with an income stream it might stay around - having migrated between accounting systems before for a small business I'd avoid it as much as possible) 

https://www.clearbooks.co.uk/pricing/

Response 1

You’re thinking about this in exactly the right way—keep it simple, compliant, and proportionate to the size of the businesses. Let me break it down clearly.

🧾 1. Your setup vs MTD (Making Tax Digital)

Under HM Revenue & Customs’s MTD for Income Tax (starting from April 2026 for many sole traders/landlords):

• You’ll need:

  • Digital records

  • Quarterly updates

  • Final declaration (replacing Self Assessment)

👉 Important:

MTD applies per individual, not per business.

So:

• You → 2 businesses (your sole + joint share)

• Mrs A → 2 businesses (her sole + joint share)

💻 2. Do you actually need full accounting software?

Short answer: No — not necessarily.

Given your situation:

• Low transaction volume

• Mostly bank transfers

• No stock / complex VAT

• Comfortable with Excel

👉 Bridging software is absolutely a viable option and widely used in cases like yours.

📊 3. Excel + Bridging software (good fit for you)

This approach:

• Keep records in Excel (as you do now)

• Use bridging software to:

  • Submit quarterly updates

  • Stay MTD compliant

✔️ Pros

• Cheap (£0–£50/year typically)

• Keeps your existing workflow

• Minimal learning curve

❗ Cons

• Slightly more manual

• You must structure spreadsheets properly

🔧 Popular bridging options (UK)

Here are commonly used ones:

• BTCSoftware MTD Bridging

  → Very popular with accountants, simple, reliable

• Absolute Excel VAT Filer

  → Cheap, lightweight

• TaxCalc MTD

  → More full-featured (can grow with you)

• Andica MTD Bridging

  → Budget-friendly option

👉 Expect ~£30–£100/year depending on features.

🧩 4. One software per business?

This is where it gets interesting.

Because MTD is per person, not per business:

👉 You may be able to:

• Submit one combined quarterly update per person

• With:

  • Separate income streams (each business tracked in Excel)

✔️ So:

• You → 1 submission (covering both businesses)

• Mrs A → 1 submission

👉 That means:

• You likely don’t need separate software per business

• Just:

  • Clean separation in spreadsheets

  • Clear totals per business

💡 Your accountant should confirm their preferred structure (some want separate feeds).

🏦 5. Mrs A using a personal account

This is not a problem for HMRC.

HMRC cares about:

• Accurate records

• Digital trail

They do NOT require a business bank account.

👉 So:

• Keep using personal account ✔️

• Just ensure:

  • Business transactions clearly identifiable

  • Ideally a separate column/tag in Excel

🤝 6. Joint rental income paid into your sole account

This is a really good question.

Does it break the 50/50 split?

👉 No — provided the beneficial ownership is genuinely 50/50.

HMRC looks at:

• Ownership of the asset

• Not whose bank account receives rent

So if:

• Property is jointly owned ✔️

• Income genuinely shared ✔️

Then:

• Declaring 50/50 is fine

⚠️ But best practice:

To avoid questions:

• Keep a clear audit trail, e.g.:

  • Transfer 50% to Mrs A regularly

  • Or track her share clearly in records

💡 7. Practical recommendation (your situation)

I’d suggest:

✅ Stick with Excel

✅ Use bridging software (1 per person ideally)

✅ Keep:

• Separate tabs per business

• Clean summaries per quarter

Avoid (for now):

❌ Full accounting software subscriptions

(unless things grow or MTD gets stricter)

🧠 Bottom line

• Bridging software = perfectly sensible choice for you

• You likely don’t need multiple subscriptions

• Personal accounts = fine

• Joint income into your account = fine (with records)

👍 One thing I’d clarify with your accountant

Before committing:

👉 Ask them:

• “Do you want quarterly submissions per business or per individual?”

That will determine:

• Whether you need 1 or 2 software setups

Response 2

You’re thinking about this in a very sensible, structured way—and for simple sole trades like yours, it’s worth resisting the temptation to overcomplicate things just because of Making Tax Digital (MTD).

Let me break this into the two key parts: software choice (bridging vs full software) and the joint business / bank account question.

1) Bridging software vs full MTD software

Given what you’ve described (low transaction volume, mostly bank transfers, Excel confidence), bridging software is absolutely a viable—and often ideal—solution.

Why bridging software fits your setup

• You already keep clean records ✔

• Transactions are simple ✔

• No need for invoicing, payroll, stock, etc. ✔

• You have multiple small businesses ✔

Full software like QuickBooks or Xero becomes expensive quickly when:

• You need multiple subscriptions (one per business)

• You don’t actually use most of the features

That’s where bridging shines.

How bridging software works (in practice)

You:

1. Keep your records in Excel (as you do now)

2. Categorise income/expenses to match HMRC boxes

3. Upload or link the spreadsheet to bridging software

4. Submit quarterly updates + final declaration

No bank feeds, no automation—just clean, controlled reporting.

Good bridging software options (UK)

Here are some widely used ones:

• TaxCalc (has bridging module)

• BTCSoftware

• Absolute Excel VAT Filer

• Andica MTD

For MTD for Income Tax (when it fully applies), expect similar tools to adapt.

Do you need one per business?

Yes—practically speaking, each business needs to be submitted separately.

However:

• Some software licences let you manage multiple businesses under one login

• Others charge per “client” or “business”

👉 This is the key cost question—worth checking before choosing.

My honest take for your situation

Given your setup:

• Start with bridging software

• Keep using Excel (you’re already doing it right)

• Avoid committing to monthly subscriptions per business

You can always upgrade later if things grow more complex.

2) Mrs A using a personal bank account

This is very common, especially where banks refuse business accounts for certain trades.

From an HMRC / MTD perspective:

• Totally acceptable, as long as:

  • Transactions are clearly identifiable

  • Records are complete and separate from personal spending

MTD does not require a business bank account.

3) Joint business income paid into your sole account

This is the more subtle point—and you’re right to question it.

Short answer:

No, it doesn’t compromise the 50/50 tax split—if handled properly.

What HMRC cares about:

• Who owns the business / income

• How profits are allocated

• Whether records support that split

Not strictly:

• Which bank account receives the money

But there are practical risks

If income goes into your sole account:

• It can look like it’s your income

• Especially if not clearly documented

How to protect yourselves (simple steps)

If you do use your account:

• Keep clear records showing 50/50 ownership

• Transfer Mrs A’s share regularly (or record it clearly)

• Maintain a simple profit split working paper

• Ensure your accountant reflects this consistently

Cleaner alternative (recommended if possible)

• Use a joint account for the joint business

  OR

• Keep using current joint account (which you already have)

This avoids questions entirely.

Bottom line

• Bridging software + Excel = very sensible choice for you

• You’ll likely save money and keep control

• One setup per business is needed, but some tools handle multiple

• Mrs A using a personal account is fine

• Joint income into your sole account is technically OK, but cleaner to keep it joint

I'm not sure if this is too simple a solution for your quite complex question bit - if you've got an accountant doing your tax return calculations anyway why not just have them submit the return? The MTD software is basically bookkeeping software for individuals thats enables them to also make digital submissions to HMRC - but you're getting an accountant to do that bookkeeping so just get them to submit it on your behalf. Otherwise you're paying for software that you're only going to use for 15 minutes a year.

EDIT 

also

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Thanks all ... liking the look of VitalTax bridging thingy