The short answer
Good MTD records are not just scanned receipts. They are structured, reviewable transaction details kept in compatible software and used to create your quarterly totals. SimpleTaxFlow keeps the record, supporting evidence and review status together.
What counts as a digital record for MTD?
A digital record is the business information held in software, not simply a photograph of a receipt. For income and expenses, it should preserve the transaction details needed to build accurate category totals for HMRC.
- The date of the transaction
- The amount received or spent
- The income or expense category
- A description or counterparty where it helps explain the record
- Supporting evidence such as a receipt or invoice where available
When should digital records be created?
HMRC requires the records for a quarterly period to exist before you send the update or reach its deadline, whichever comes first. Creating them close to the transaction date gives you a more current view and makes missing details easier to resolve.
If you join MTD partway through a tax year, HMRC may require you to catch up from the start of the year before your first update.
Spreadsheets, imports and digital links
You can use more than one application, but moving required data between them should be digital. Re-keying totals by hand can break the digital chain and introduce mistakes.
SimpleTaxFlow imports CSV and Excel statement data and can reconcile rows against records you already captured. Supported PDF statements are read and checked against the printed running balance before import.
Four ways to keep records current in SimpleTaxFlow
Choose the route that fits the transaction rather than forcing every record through the same screen.
- Add income or expenses directly in the Activity workspace
- Upload a receipt image or PDF for smart extraction and review
- Send an optional WhatsApp message or attachment while on the go
- Import a statement file and reconcile it against earlier evidence
A ten-minute weekly record-keeping routine
A short weekly check is usually more reliable than a quarterly reconstruction. Open Activity, review uncategorised items, attach missing evidence and confirm that paid income is present. At quarter end, the filing review should then be a confirmation exercise rather than a rescue mission.
- Capture new receipts and invoices
- Review extracted dates and amounts
- Resolve uncategorised or needs-review items
- Check statement activity against recorded transactions
- Use Filing to see whether the quarter is ready
Frequently asked questions
Is a photo of a receipt a digital record?
It is useful supporting evidence, but MTD also needs the transaction information held digitally in compatible software. SimpleTaxFlow keeps the structured record and evidence together.
Do I have to scan every receipt?
HMRC's digital-record rules focus on the required business data. Keeping receipt or invoice evidence is still valuable for checking and supporting a transaction, but the exact evidence you must retain depends on normal tax record rules and your circumstances.
Can I import bank statements into SimpleTaxFlow?
Yes. You can import CSV and Excel statements, and supported PDF statements. Imported rows can be matched against existing receipt-led records to reduce duplication.
Does SimpleTaxFlow have live bank feeds?
Not yet. Automated bank sync is planned for early 2027. Statement imports, receipt capture, invoices and manual records are available now.
Check the official rules
MTD rules can change and individual circumstances matter. Use HMRC’s current guidance to confirm eligibility, exemptions, supported income sources and deadlines.
Turn the guidance into a manageable routine.
Keep records, evidence, reports and supported HMRC submissions together. Free for 30 days, then £5 per month equivalent, billed annually at £60.
Continue learning