MTD Digital Record Keeping: What You Must Record

Introduction

MTD ITSA requires you to keep digital records of your business income and expenses. This is the foundation for quarterly updates and year-end submissions.

This guide explains what you must record and how to keep evidence that supports your numbers.

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What counts as digital records?

Digital records are entries stored in software or a spreadsheet that can be submitted to HMRC through compatible tools. Paper records alone are not enough once you are in MTD ITSA.

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Required records for self-employment

At a minimum, record:

• date of each transaction
• amount of income or expense
• category of income or expense
• business bank account details (if applicable)

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Required records for property income

For rental income you should record:

• rent received and dates
• letting agent fees
• repairs and maintenance
• insurance and service charges
• replacement of domestic items

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Evidence you should keep

HMRC can ask for evidence such as:

• invoices
• receipts
• bank statements
• mileage logs

Keep evidence for at least the required retention period.

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How often should you update records?

Updating weekly or monthly keeps quarterly updates accurate and reduces end-of-year stress. The key is consistency.

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How QTax helps

QTax keeps your records digital, organized, and ready for quarterly submissions. It also highlights missing data so you can fix issues early.

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FAQs

Do I need to keep paper receipts?

You can keep digital copies, but the evidence must be clear and readable.

Can I mix spreadsheets and software?

Yes, but you must still submit through MTD compatible software or bridging tools.

What if I make a mistake in my records?

You can correct errors in later updates or in your year-end submissions.

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Conclusion

Digital record keeping is the core of MTD ITSA. If you keep clean, consistent records, quarterly submissions become a simple routine instead of a scramble.