Category 5
Record Keeping
You must keep digital records of income and expenses that support your quarterly updates and tax return.
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.
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.