Keep digital entries showing the amount, relevant date and category for the business or property transactions in scope, supported by the underlying evidence. A receipt image or bank feed can help, but neither proves the books are complete. Check any simplified-recording rules that apply.
Paper shoeboxes and a January tidy-up are not the design. You should still keep underlying evidence (invoices, statements, receipts). MTD does not mean “delete everything except software totals.”
What each digital record needs
When you create a record, GOV.UK expects at least:
- amount
- date the income was received or the expense incurred
- category, using the same broad Self Assessment-style categories your software supports
Day to day that usually means a clear trail for money in (sales, fees, rent and other taxable income in scope) and money out (allowable expenses), recorded close enough to the transaction that period totals are not guesswork.
For example, a landlord’s boiler repair might be recorded as amount £240, date 12 June 2026, category something like repairs and maintenance (wording depends on the software). The invoice PDF still sits in your files as supporting evidence.
Self-employment and property: different shapes
If you have more than one sole-trader business, GOV.UK expects separate digital records (and separate quarterly updates) for each. UK rental properties are different: they are generally treated as one UK property business, so you do not create a separate MTD “set” per flat. Your software rolls UK property income and expenses into that one business, including your share of jointly let UK property.
Foreign property has its own rules, including separate digital records per foreign property in many cases, even though they still form one foreign property business for the update. Check GOV.UK if you have mixed UK and overseas lets.
One product or several, and digital links
You can use one all-in-one product for records and submissions, or more than one product. If you use more than one, GOV.UK requires them to be digitally linked before you send updates or the return.
Legitimate digital links include methods such as:
- linked cells or formulas in spreadsheets
- importing or exporting files (for example CSV or XML) between compatible tools
- emailing a spreadsheet of digital records for import into another product
- transferring files on a portable device for import
- automated data transfer or an API connection
What is not treated as a digital link is manually rewriting figures, or cutting and pasting records between systems after they have been created. Once a digital record has gone to HMRC in a quarterly update, you must not manually move that record around inside or between products in those non-compliant ways. If multi-product linking sounds fiddly, many people prefer an accountant or agent to design the workflow.
When to start
Start from the beginning of the relevant tax year for your accounting period (often 6 April for standard periods, or 1 April if you use calendar update periods). If you join part-way through the year, you may need to catch up records from the start of the year so the first update is complete. Create records as close to each transaction as you reasonably can.
A common mistake
Mixing personal and business spending in one account with no labels, then expecting software or an accountant to reconstruct everything from vague bank descriptions. Cleaner habits through the year make the records usable. For how those records later roll into HMRC summaries, see what quarterly updates contain.
On TaxSimba’s MTD service, you still provide documents and answers. Accountants help organise the compatible-software workflow so records stay usable. Unsure whether MTD applies at all? Confirm on GOV.UK and use the MTD checker as a prompt.
Link the invoice to a usable entry
Illustrative preparation example.
Choose one supplier invoice. Find the digital entry, check its date, amount and category, then find the supporting document again. If the entry is duplicated or cannot be traced, fix the record rather than adding another copy of the image.
Check: Can a different person follow the evidence from document to entry to reported total?
| Check | Practical action |
|---|---|
| Supporting evidence | Keep the invoice or other genuine transaction evidence. |
| Digital record | Check date, amount, category and business source. |
| Product transfer | Verify the permitted digital-link workflow where applicable. |
Can I delete the receipt once the amount is entered?
Keep supporting evidence under the applicable record-retention requirements. Software totals do not replace the whole evidence trail.
What if I have business and rental income?
Keep the required sources identifiable and check how the software groups records for each business.
Download a checklist for this guide
- Business or property source
- Dates, amounts and categories
- Supporting evidence location
- Private-use or unclear entries
- Software products and transfer method