What counts as a digital record under MTD?

Checked against GOV.UK on 14 August 2026 · Applies from 6 April 2026 onwards.

“why is there not a simple software that one can use?”

We hear this most. a landlord who banks online and has done for 34 years, OpenRent Community forum, 1 August 2026 — someone in the same position as you.

Short answer

A record of one income or expense item — amount, date and category — created and stored in compatible software.

Whatever software you end up choosing, it has to hit these dates. Your next quarterly update is due 7 November 2026, and because updates are cumulative it covers 6 April to 5 October 2026 — so it also catches up 7 August 2026 if you missed it. Your tax return for 2026 to 2027 is due 31 January 2028, and that one is still in the points system. And from September 2026 HMRC has been signing people up itself, in stages, if they had not signed up.

You are not alone, and this is the measured version of that sentence. HMRC put 864,000 sole traders and landlords in scope for this tax year (HMRC, 5 February 2026), and reported on 12 August 2026 that 436,000 had sent a first quarterly update and 570,000 had signed up. We have not subtracted one from the other to make a "how many are behind" headline — they were published six months apart and count different things — but you can see the size of the room you are standing in.

What to do tonight

half an hour, tonight, and you may not need to spend a penny

Open HMRC's own recognised-software list before you open anyone's sales page. It is the only list that decides what can actually send an update.
Filter it for products that cost £0. They exist, for sole traders and for landlords, including bridging tools that submit straight from a spreadsheet you already keep.
If your records are already in a spreadsheet, keep the spreadsheet. Bridging software is built exactly for that, and nothing in the rules requires you to move to a monthly subscription.

None of those three steps costs money. Anyone charging you to do them is selling you something HMRC gives away.

Where these come from, on GOV.UK: quarterly updates and their deadlines · the tax return · who has to use MTD, and when · working out qualifying income · the recognised-software finder · what to do if HMRC signed you up.

The free route, before anyone sells you a subscription

HMRC publishes the official list of software recognised for Making Tax Digital for Income Tax, and its own guidance says plainly that “free products are available for those with simple tax affairs”. We drove that finder ourselves on 1 September 2026 and it returns recognised products costing £0 — for sole traders and for landlords, including bridging tools that submit straight from a spreadsheet you already keep. We take no commission from any of them, we rank none of them, and this site carries no affiliate links.

HMRC's official software finder (gov.uk) · how bridging software works · the free two-number check · your own four dates

Signing up for Making Tax Digital is free at GOV.UK. So is the checker on this page, and so is every answer on this site.

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 where the compliance work actually sits.

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 →

Questions people ask

Does MTD mean I can throw away paper receipts?

No. You must continue to keep the original records or supporting documents you used to prepare your tax return, such as bank statements and invoices.

What has to be in a digital record?

The amount, the date the income was received or the expense incurred, and the category.

Andrew at Axion Labs

I don't sell software, take commission, or rank products, so I can say the plain thing: check HMRC's own list before anyone's sales page, and filter it for the free ones. They exist. If your records already live in a spreadsheet, bridging software is built for exactly that, and you do not have to move onto a monthly subscription to comply.

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.

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