What Are Digital Business Records?

What Are Digital Business Records?

Under MTD for VAT, the records you are required to keep to support your VAT returns must be kept digitally in what is known as ‘functional compatible software’. This will usually be either an accounting software package of some kind or a spreadsheet package. Certain data from business invoices and receipts must be recorded digitally but the invoices and receipts themselves do not need to be scanned and saved digitally, although they can be retained in this way. For more information on the data that must be retained digitally in functional compatible software, see HMRC’s guidance.

There is information on GOV.UK to help you choose accounting software or bridging software, including a tool which will help you narrow down the products that may be suitable for you. This is fairly basic at the moment but HMRC are working to improve the filter options within the tool.


    • Related Articles

    • What Is Making Tax Digital For VAT?

      Making Tax Digital for VAT is the first of HMRC’s new digital programmes which they believe will improve the standard of record keeping by many businesses and so improve the accuracy of returns they make. There are two elements to the new Making Tax ...
    • Which tax records do I need?

      Each and every person filing for a self-assessment must have accurate and up-to-date business records from the last tax year. If left too late, record keeping can spiral out of control. To help you avoid added hassle and confusion, SimpleTax is here ...
    • https://help.gosimpletax.com/hc/en-gb/articles/202028778-Which-tax-records-do-I-need-

      Each and every person filing for a self-assessment must have accurate and up-to-date business records from the last tax year. If left too late, record keeping can spiral out of control. To help you avoid added hassle and confusion, SimpleTax is here ...
    • https://help.gosimpletax.com/hc/en-gb/articles/200836125-Business-Flyers

      Can I claim? Yes.  Conditions  You can claim eligible tax relief on any marketing and advertising costs whatsoever.  Promoting your business is one of the most important expenditures for a new self-employed worker.  This business investment is ...
    • My business has ceased trading.

      Click on the Self Employment Page     Click on Edit     Select the YES Radio button to show that the business ceased trading     Enter the Business End Date     Click SAVE You should also notify HMRC. Please see the links below for further guidance: ...