Yes — with bridging software and digital links. What you cannot do is copy and paste.
Spreadsheets are not banned. They just cannot be the last step. Bridging software connects the spreadsheet to HMRC, and the connection between your records and your submission has to be digital all the way.
The rule that actually bites
Once you have created a digital record and it has been sent to HMRC in a quarterly update, you must not manually move that record within your record-keeping software or to other software. HMRC gives two explicit examples of what is not allowed:
copying information by writing it out in another cell or in other software
using cut and paste, or copy and paste, to move records
What counts as a digital link
Linked cells in spreadsheets — a formula in one sheet mirroring a value in another
Emailing a spreadsheet of digital records so it can be imported into another product
Putting records on a portable device — a pen drive, memory stick or flash drive — and handing it to someone who imports the data
XML or CSV import and export, and downloading and uploading files
An automated data transfer
An API transfer
What you do not have to link
Records of income that is not self-employment or property — dividends or savings, for instance
Software not used to create those digital records — a booking system, or a till that records sales receipts
Software used only to submit the tax return, because it gets its data directly from HMRC
If you jointly let a property, your records and the other landlord's records
Worth knowing before you commit to the spreadsheet route
HMRC's own material is straight about the trade-off: spreadsheets will not have the timesaving, user-friendly features that all-in-one bookkeeping apps have. Bridging keeps your existing system; it does not modernise it.
General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC. Tax rules change — if this page is more than a few months old, check the GOV.UK pages linked above. Found an error? Email hello@getaxionlabs.com and we will correct it.