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Record Keeping
Good records are the foundation of MTD. HMRC expects digital, complete, and accurate records that support every figure you submit — backed by invoices and receipts.
- Record income and expenses close to when they happen
- Keep evidence for at least five years after the 31 January deadline
- Separate personal and business spending clearly
What it is
HMRC requires digital records that are complete, accurate, and readable. For MTD for Income Tax this means recording income and expenses in digital form — not only on paper — and retaining evidence such as receipts and invoices.
Bank statements, invoices, receipts, mileage logs, and contract notes all support your return. Simplified expenses (e.g. flat-rate mileage) still need underlying journey records. HMRC can ask to see records during compliance checks.
Who it applies to
Everyone within MTD for Income Tax or MTD for VAT must keep records that meet HMRC’s digital record-keeping rules for that regime.
What you need to do
- Record sales and purchases close to when they happen.
- Store invoices, receipts, and bank statements.
- Keep records for at least 5 years after the 31 January submission deadline (Self Assessment rules).
Key points
- You can use spreadsheets only if they meet digital link rules — most people use approved software.
- Simplified expenses (e.g. mileage) still need supporting records.
Common mistakes to avoid
- Leaving receipts unorganised and entering figures only at year end
- Claiming expenses without proof of business use
- Mixing personal and business transactions on one card with no notes
How SelfSubmit helps
Upload receipt photos in SelfSubmit as you go and complete your monthly return so quarterly HMRC figures are already organised.