MTD: What Records Do You Need to Keep
Under MTD, you must keep digital records of all business transactions. Here is a quick reference.
What to Record for Each Transaction
- Date of the transaction
- Amount in pounds and pence
- Category (type of income or expense)
Business Information to Record
- Your name and National Insurance number
- Business name and address
- Accounting period start and end dates
Supporting Documents to Keep
- Sales invoices
- Purchase receipts
- Bank statements
- Contracts and agreements
- Mileage logs (if claiming mileage)
- CIS payment and deduction statements (if applicable)
These do not need to be digital, but digital storage is recommended.
How Long to Keep Records
At least 5 years after the 31 January filing deadline for the relevant tax year. For the 2026/27 tax year, that means keeping records until at least 31 January 2033.
The Easy Way
Use cloud-based MTD software like Accounted. Your records are stored automatically, backed up in the cloud, and retained for as long as you need them. No filing cabinets required.
Penny, our AI bookkeeper, categorises your expenses automatically and flags anything that looks wrong. Try it free for 14 days.
Tax & Compliance Specialists
Our tax specialists have decades of combined experience in UK sole trader and small business taxation, MTD compliance, and HMRC submissions. All content is reviewed against current HMRC guidance before publication and updated quarterly to reflect legislative changes.
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