The short answer
WhatsApp is optional. This guide follows the web-first route through SimpleTaxFlow.
What counts as a digital record for MTD?
For MTD for Income Tax, a digital record is an income or expense record created and stored in compatible software. HMRC says each record must include the amount, the date the income was received or expense incurred, and the relevant Self Assessment category.
A receipt can support your records, but it is not a substitute for checking the structured transaction. SimpleTaxFlow turns manual entries, receipt uploads and invoices into records you can review in Transactions before their totals reach a quarterly update.
Automation helps, but the record is still your responsibility
HMRC is clear that you are responsible for checking digital records created with connected software. That applies equally to OCR and suggested categories: confirm the date, amount, business, category and business purpose rather than accepting them blindly.
Create records as close to the transaction date as practical and correct errors as soon as you find them. The next cumulative quarterly update can then include the corrected totals.
1. Add income and expenses in Bookkeeping
Open Bookkeeping and add each transaction with its date, amount, supplier or customer, category, and a clear business description. Attach receipt, invoice, image, or PDF evidence when you have one. Working through a stack at once? Choose Income / Expense, then Multiple Income / Expense, to enter a batch on one screen. Each row is one transaction and can carry its own receipt, and one Save adds them all.
Open Bookkeeping2. Use Invoices for client income
Create invoices in the Invoices workspace and connect Stripe if you need payment links or payment status updates. Check paid invoice income appears in Bookkeeping as part of your regular review.
Read the invoice guide3. Review exceptions before they build up
Use Bookkeeping filters to find uncategorised, needs-review, or missing-evidence records. Correct the details while the context is still fresh, then use Reports to understand the updated numbers.
See the MTD workflow4. Prepare the quarter in Tax
When the reporting period is complete, open Tax to check the obligation, review the figures and records, and open the Quarterly update page. HMRC needs to be connected before you submit.
Prepare a quarterly updateBefore you move on
- Income and expenses are recorded in Bookkeeping or through Invoices
- Receipt evidence is attached where available
- Uncategorised and needs-review records are resolved
- Reports and Tax figures have been reviewed before submission
Frequently asked questions
Can I use SimpleTaxFlow without WhatsApp?
Yes. WhatsApp is optional. You can enter transactions, upload receipts, manage invoices, review reports and prepare HMRC submissions in the web application.
Is a receipt image enough for an MTD digital record?
The receipt supports the transaction, but the digital record still needs the amount, date and category. Review the extracted fields and keep the receipt attached as evidence where available.
Does MTD require a bank feed?
No. HMRC requires digital records in compatible software, not a particular capture method. Whatever route you use to capture records, you still check them for accuracy.
When should I correct a digital record?
HMRC says to correct an error as soon as possible. A correction made during the tax year will be reflected in the next cumulative quarterly update.
Check the official rules
Tax rules can change and individual circumstances matter. Use HMRC’s current guidance to confirm the treatment that applies to you.
Put the guide into practice.
Open the relevant workspace and complete the next step with this guide available in another tab.
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