What counts as a digital record under MTD?

Checked against GOV.UK on 14 August 2026

A digital record is a per-transaction record, not a monthly total typed into a box. Understanding what has to be digital, and what does not, is most of the compliance work.

What each record contains

When you create a record of income or expense you need the amount, the date the income was received or the expense was incurred, and the category.

What has to be recorded digitally

• Self-employment income — sales, takings and fees
• Self-employment expenses — cost of stock, travel costs, office costs, financial costs
• Property income — rent, premiums for the grant of a lease, reverse premiums, inducements
• Property expenses — rent, costs of repairs, maintenance or other services

What does not have to be digital

Only self-employment and property income and expenses. Other income — pensions, a partnership profit share, savings, dividends — does not need digital records, but must still be reported on your tax return using your software.

Paper does not go away

You must also continue keeping records like you normally do for Self Assessment. You still need to keep the original records or supporting documents, or copies, that you used to prepare your tax return — bank statements and invoices, for example.

Bank feeds are not a free pass

If your software connects to your bank account you may need to add detail such as the relevant Self Assessment category. Some transactions will not appear in full in a bank feed and have to be created separately as a digital record. HMRC is explicit that it is your responsibility to check your digital records are accurate before you send a quarterly update.

When to start

• Accounting period ending 5 April: from 6 April of the relevant tax year, with no change needed in your software.
• Accounting period ending 31 March: from 1 April, selecting calendar update periods before your first update.

Before you start recording

Check you have completed every step of signing up, including authorising your software.

Digital links and copy-paste rules →

Sources

• Use Making Tax Digital for Income Tax: create digital records (HMRC guidance)

General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC. Tax rules change — if this page is more than a few months old, check the GOV.UK pages linked above. Found an error? Email hello@getaxionlabs.com and we will correct it.

← All Making Tax Digital answers