Quick answer
For each income and expense, your digital record needs the amount, the date and the category. Records must be created and stored in software that works with MTD for Income Tax, or in a spreadsheet digitally linked to bridging software. You can still keep paper receipts as evidence.
What a digital record is
A digital record is a record of an income or expense that’s created and stored in software that works with MTD for Income Tax. You need them for your self-employment income and expenses, and your property income and expenses.
What each record must show
The amount
The date the income was received or the expense was incurred
The category, such as rent, repairs or office costs
Digital links
Once a record is in your software or spreadsheet, it has to move between programs digitally. You can’t retype or copy and paste figures that have gone into a quarterly update. Accepted digital links include:
linked cells in a spreadsheet
importing and exporting files such as CSV or XML
emailing a spreadsheet to import it into another product
automated data transfer or API connections
Simplified records for joint property
Joint owners can keep simplified records for their share of jointly let property. See MTD and jointly owned property.
Receipts
You don’t have to scan every receipt, but you must keep evidence for what you claim. Photographing receipts into your software is the easiest way to keep the two together.