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Digital Records
MTD means more than scanning paper — the underlying transaction data must live digitally and support submissions without manual re-keying between systems.
- Cloud software is the norm for compliant record-keeping
- Back up records and restrict access for security
- Bank feeds help reconcile income and spending
What it is
Digital records mean storing transaction data electronically in a way that supports your MTD submissions. You can scan paper receipts but the underlying data must be held digitally.
VAT digital link rules are stricter than some income tax setups, but good habits benefit everyone. HMRC may request records during enquiries — disorganised files slow resolution and risk adjustments.
Who it applies to
All taxpayers within MTD for Income Tax and MTD for VAT.
What you need to do
- Use cloud accounting or MTD software from day one.
- Back up records regularly.
- Reconcile bank feeds where possible.
Key points
- HMRC may ask to see records during compliance checks.
- Digital link rules prevent manual re-typing between systems for VAT.
Common mistakes to avoid
- Taking photos of receipts but never entering amounts digitally
- Relying on one laptop with no backup
- Deleting source documents after submitting a quarter
How SelfSubmit helps
SelfSubmit stores receipt uploads securely and ties them to your monthly figures — a practical digital record for self-employed monthly reporting.