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Using the MTD ITSA Bridging Tool to Upload Quarterly Returns in BrightBooks

Shannon Brady
  • Updated

This guide explains how to use the MTD ITSA Bridging Tool in BrightBooks to upload and submit quarterly ITSA returns using the official Excel templates.

 

You can use the Bridging Tool for:

  • Sole Trader income
  • UK Property income
  • Foreign Property income
 

Important: The Bridging Tool is for uploading completed MTD ITSA Excel templates. It is not for importing journals or invoices.

Before You Start

To use the Bridging Tool, you will need:

  • An active BrightBooks business profile for each client
  • The business type is correctly set as Sole Trader, UK Property, or Foreign Property
  • The official MTD ITSA Excel template for each type of income you’re reporting
  • Your Agent Services Account (ASA) is already linked to BrightBooks for MTD ITSA submissions
 

If you are unsure about obtaining or completing the official MTD ITSA templates, please contact HMRC or your software provider for the latest version and guidance.

 

1. Preparing the MTD ITSA Excel Template

You must complete the official MTD ITSA Excel template for each client and each quarter before uploading it to BrightBooks.

  1. Open the relevant MTD ITSA Excel template for the client’s income type (e.g. Sole Trader, UK Property).
  2. Complete the template using the totals for that quarter only (e.g. total income, total expenses).

  3. Ensure the following before saving:

    • Do not change any sheet/tab names or the template structure.
    • Enter numbers as plain values (no formulas, no text-formatted numbers).
    • Complete all required fields as specified in the template.
     
  4. Save the Excel file with a clear, unique name, for example:
    • Q1_2026_JSmith_SoleTrader.xlsx
    • 2025-26_Q2_JBloggs_UKProperty.xlsx
 

Note: Each client and each quarter should have its own completed Excel file.

2. Selecting the Correct Client in BrightBooks

  1. Log in to BrightBooks via your browser.
  2. From your list of businesses/clients, select the relevant business profile.
  3. Confirm that the business type is correctly set as:
    • Sole Trader, or
    • UK Property, or
    • Foreign Property
      The business type must match the type of income being reported in the Excel template.
 

3. Navigating to the MTD ITSA Bridging Tool

  1. Within the selected business, go to the MTD for ITSA section from the main menu (often located on the left-hand side).
  2. Look for the option named either:
    • Bridging Tool, or
    • Quarterly Returns Import
      (The exact wording may vary slightly within BrightBooks.)
  3. Click this option to open the MTD ITSA Bridging Tool.
 

Important: Ensure you are in the MTD ITSA Bridging Tool area and not in any Journal Import screen. Validation errors about nominal codes or unbalanced journals usually indicate you are importing in the wrong place.

4. Uploading the MTD ITSA Excel Template

  1. In the Bridging Tool screen, click Choose File or Browse.
  2. Locate and select the completed Excel file for the correct client and quarter.
  3. From the dropdown menus, select:
    • The relevant Tax Year (e.g. 2025–26)
    • The relevant Quarter (e.g. Q1, Q2, etc.)
  4. Click Import to upload the file.
 

Once submitted, BrightBooks will begin the import process and perform validation checks on your file.

 

5. Reviewing Validation and Import Messages

After you click Import, BrightBooks will validate the uploaded Excel file.

 

5.1 Successful Import

If there are no issues with the file:

  • The import will be accepted
  • You will see a confirmation that the file has been queued for import
 

BrightBooks will then process the file in the background. This can take a few minutes, particularly if there are multiple imports in the queue.

 

5.2 Validation Errors

If there are problems with the file, you will see validation messages such as:

  • Wrong file type or format
  • Missing required fields
  • Invalid or unexpected data in certain cells
 

If you see errors:

  1. Read the message carefully to identify the issue.
  2. Open the original Excel template and correct the problem.
  3. Save the file.
  4. Return to the Bridging Tool in BrightBooks and re-upload the corrected file.
 

Tip: If you see messages about nominal codes or unbalanced journals, you are likely in a journal import screen instead of the MTD ITSA Bridging Tool. Return to the MTD for ITSA area and select the Bridging/Quarterly Returns Import option.

6. Checking Imported Data and Generating the Quarterly Update

Once the file has been processed successfully:

  1. Go back to the MTD for ITSA section for the client’s business.
  2. Locate the relevant tax year and quarter.
  3. You should now see the figures that were imported from the Excel template (for example, income and expenses totals).
  4. Review the data to ensure it matches the client’s records.
  5. When ready, click Generate (or similar) to create the Quarterly Update for that period.
 

This will prepare the quarterly update that you can then review and submit to HMRC.

 

7. Submitting the Quarterly Update to HMRC

After generating the quarterly update:

  1. Review all figures on the screen.

    • Confirm they match the totals you expect from your working papers or bookkeeping system.
     
  2. When you are satisfied everything is correct, click Submit.
  3. Read and confirm the legal declaration on screen.
  4. BrightBooks will send the quarterly update to HMRC using your MTD ITSA credentials.
 

You will see a status update for the submission, such as:

 
  • Submitted – The update has been sent to HMRC.
  • Fulfilled – HMRC has accepted the update.
 

You can check the submission status in the MTD for ITSA area for that business and tax year.

 

8. Repeating the Process for Other Clients

Repeat the steps above for each client:

  1. Select the correct business profile in BrightBooks.
  2. Confirm their business type (Sole Trader, UK Property, or Foreign Property).
  3. Upload the correct Excel template for the relevant tax year and quarter via the MTD ITSA Bridging Tool.
  4. Generate the quarterly update and submit to HMRC.
 

Each client must have their own MTD ITSA Excel file and submission for each quarter.

 

Common Tips and Troubleshooting

  • Always use the official MTD ITSA bridging templates.
  • Do not rename tabs, delete columns, or change the structure of the Excel template.
  • Ensure amounts are entered as numbers (no formulas, no text values).
  • If you experience repeated validation errors:
    • Double-check you are in the MTD ITSA Bridging Tool, not in journal import.
    • Verify you are using the correct template type for the business (Sole Trader vs Property).
    • Check for any blank required fields in the template.
 

Summary

To submit MTD ITSA quarterly updates via the Bridging Tool in BrightBooks, you do not need to upload journals or invoices. Simply:

  1. Complete the official MTD ITSA Excel template for each client and quarter.
  2. Log into BrightBooks, select the correct business, and open the MTD for ITSA Bridging Tool.
  3. Upload the Excel file, select the tax year and quarter, and import.
  4. Review the imported figures, generate the quarterly update, and submit it to HMRC.
 

This process ensures that your clients’ quarterly ITSA obligations are met using the officially approved bridging method.