MTD Digital Links Explained: No More Copy and Paste

One of MTD's requirements that causes the most confusion is digital links. In simple terms, it means that data must flow between your software and spreadsheets electronically — you cannot manually type figures from one system into another.

What Is a Digital Link?

A digital link is an electronic transfer of data between software programs, products, or applications. Examples include:

• Formulas in a spreadsheet linking one sheet to another
• API connections between two software tools
• CSV imports and exports between programs
• Automated data feeds like bank feeds

What Is Not a Digital Link?

• Copying a number from one spreadsheet and typing it into another
• Looking at a total on screen and manually entering it elsewhere
• Reading a figure from your bank statement and typing it into your software
• Printing a report and re-entering the data somewhere else

Any time a human manually transfers a number from one place to another, the digital link is broken.

Why Digital Links Matter

Manual data transfer is the leading cause of errors in tax reporting. Every time someone copies a number by hand, there is a risk of:

• Transposing digits (typing £2,340 instead of £2,430)
• Missing a figure entirely
• Entering the wrong amount
• Putting a number in the wrong field

Digital links eliminate these risks by keeping data flowing electronically.

How This Affects You in Practice

If you use full MTD software (like Accounted): Digital links are built in. Your bank transactions flow automatically into your records, your records generate your quarterly update, and the software submits to HMRC. No manual copying anywhere.

If you use spreadsheets with bridging software: Your spreadsheet formulas must link your transaction records to the summary figures that your bridging software reads. The bridging software must read directly from your spreadsheet — you cannot type totals into it.

If you use multiple tools: Any data that moves between them must do so electronically — through API connections, automated imports, or linked files.

Compliance Tips

• Use software that handles everything in one place — this eliminates digital link concerns entirely
• If you must use spreadsheets, use formulas (never manual cell entry) to calculate totals
• Test your digital links by changing a source figure and confirming the change flows through
• Document your digital links in case HMRC asks about your record-keeping process

Accounted handles your bookkeeping, tax estimates, and MTD submissions automatically. Start your free trial — no credit card required.