Category 15
Digital Records
Records must be digital, complete, and preserved — paper alone is not enough for MTD.
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.
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.