MTD digital records. Do I have to upload receipts? What HMRC actually wants.
The short answer: No. Under Making Tax Digital you don’t upload receipts to HMRC — ever. HMRC gets four quarterly updates a year, each one a set of category totals, and never sees an individual receipt or invoice. What you must do is record every sale and every expense digitally, in software that works with MTD, with three things against each one: the date, the amount and a category. Then keep the receipts (paper or photo) for at least five years after the 31 January deadline, in case HMRC asks.
Screwfix, 7:40am. Trade counter. You’ve got a card in one hand, a box of isolators under the other arm, and the lad behind the desk is asking if you want the receipt printed or emailed.
You say printed. It goes in the door pocket of the van with the other forty.
Then somewhere around September the thought lands: MTD. Digital records. Does HMRC want all of these? Do I scan them? Type them in? Is a photo enough? Does the one that went through the wash still count?
Here’s what Making Tax Digital for Income Tax actually asks for. Most of the panic is about a thing it doesn’t ask for at all.
HMRC never sees your receipts
Start with the bit that takes the pressure off.
A quarterly update is a summary. HMRC’s own guidance says your software “adds up your digital records” and sends “totals for each income and expense category.” It says in plain terms that HMRC does not receive details of individual receipts or invoices — only the totals. The updates are described as “summaries, not tax returns.”
So the question “do I need to upload receipts for MTD?” has a one-word answer. No. Nothing you buy at Screwfix goes to HMRC as a receipt. It goes as one number inside a bigger number.
What changes is where the receipt lives, and whether the amount on it has been written down somewhere digital by the time the quarter ends.
What counts as a digital record
HMRC’s definition is short. A digital record is a record of income or expenses “created and stored using software that works with Making Tax Digital for Income Tax.”
For each transaction, that record needs three things:
- The amount — what you were paid, or what you spent.
- The date — “the date when the income was received or expenses incurred.”
- A category — the same categories Self Assessment uses.
That’s the whole list. Not a scan. Not the supplier’s VAT number. Not a photo of the till roll. Date, amount, category.
The three-line shoebox version is this: a shoebox of receipts is not a digital record. A spreadsheet of receipts is only a digital record if it can get to HMRC through compatible software (more on that below). A photo of a receipt is not a digital record on its own — but a photo that’s been turned into a dated, categorised entry in your software is exactly what HMRC wants, with the photo kept as the backup.
So is a photo of the receipt enough?
Two separate questions hiding in one.
For the digital record: a photo alone isn’t enough, because a photo has no date field, no amount field and no category. Something has to read it and log it. That something can be you at the laptop, your accountant, or software that does it off the picture.
For the proof: a photo is fine. HMRC says you must keep “original records or supporting documents (or copies of them)” — bank statements, invoices, receipts — that you used to prepare your return. It doesn’t say the copy has to be paper, and it doesn’t require you to store the receipt itself inside your MTD software. The records page for the self-employed lists what counts as proof: “receipts for goods and stock”, “bank statements and chequebook stubs”, “sales invoices, till rolls and bank slips.”
So the one that went through the wash: if you’d already logged it (date, amount, category) and your bank statement shows the payment, you’re fine. If you hadn’t, your bank statement is still a supporting document. Log it from that.
The categories HMRC wants
MTD for Income Tax “uses the same categories of income and expenses as Self Assessment.” For a sole trader those are the expense boxes on the SA103 self-employment pages. On the full form they’re boxes 17 to 30:
- Cost of goods bought for resale or goods used — materials. Your Screwfix, your merchant, your boiler.
- Construction industry – payments to subcontractors — what you pay subbies.
- Wages, salaries and other staff costs
- Car, van and travel expenses — fuel, parking, the van.
- Rent, rates, power and insurance costs
- Repairs and maintenance of property and equipment
- Phone, fax, stationery and other office costs
- Advertising and business entertainment costs
- Interest on bank and other loans
- Bank, credit card and other financial charges
- Irrecoverable debts written off — the customer who never paid.
- Accountancy, legal and other professional fees
- Depreciation and loss or profit on sale of assets
- Other business expenses
Fourteen boxes. Most one-van traders live in about five of them: materials, van and travel, phone, insurance, accountant. The rest are there if you need them.
The £90,000 shortcut
If your turnover from the business is under £90,000, you don’t have to use the fourteen boxes at all.
HMRC lets sole traders with “turnover from a source of self-employment that is less than £90,000” categorise in less detail. In its words: “If you’re a sole trader, you only need to record whether a transaction is income or an expense.”
In, or out. That’s the lot.
Two things to know. One: the £90,000 is measured per income source, so a sole trade under £90,000 gets the simpler version even if you’ve also got a rental property. Two: if turnover reaches £90,000 in a year, full categorisation is required for that source. And your accountant may still want proper categories at year end regardless, because that’s how the final return is laid out — so logging a category as you go costs you nothing and saves them time.
The Screwfix receipt, start to finish
Say you spent £64.20 on cable and clips on 14 October for a rewire on Elm Road.
What HMRC needs from that, in your software:
| Field | Entry |
|---|---|
| Date | 14 October 2026 |
| Amount | £64.20 |
| Category | Cost of goods bought for resale or goods used (or simply ‘expense’ under the £90k rule) |
What HMRC doesn’t need: the receipt image, the supplier, the job, the VAT breakdown (unless you’re VAT-registered and claiming it back — that’s a VAT record, a different rulebook).
What you want anyway: the job it belongs to, so you know what the Elm Road rewire actually cost you. That isn’t an MTD requirement. It’s a running-a-business requirement.
So the full version is: snap the receipt, log date and amount, tag the category, tag the job, keep the photo. Four seconds if the software does the reading. Fifteen minutes on a Sunday if it doesn’t.
Spreadsheets, bank feeds and ‘digital links’
Spreadsheets. You can keep records in one, but a spreadsheet can’t send a quarterly update by itself. It has to be connected to compatible software, and HMRC is specific about what “connected” means. If you use more than one product, you must “digitally link” them. Linked spreadsheet cells, emailed spreadsheets, CSV import and export and USB sticks all count. Retyping the numbers from one into the other does not. And once a figure has gone in a quarterly update, “you must not manually move the record” between software.
Bank feeds. If your software pulls transactions from your bank, you’ll often still need to add the category, and HMRC warns that “some transactions may not appear in full in your bank feed” — cash, mainly — so those get entered by hand. Checking the figures before each update is on you.
Cash and card takings. If you sell over a counter, you can record daily gross takings rather than every sale. Most trades won’t need this, but it’s there.
The quarterly update is cumulative
One thing nobody tells you until the second quarter. Each update runs “from the start of the current tax year (6 April) to the end of the update period.” The November update isn’t July to September. It’s April to September. The totals build through the year.
The deadlines, for the standard periods:
| Period covered | Deadline |
|---|---|
| 6 April to 5 July | 7 August |
| 6 April to 5 October | 7 November |
| 6 April to 5 January | 7 February |
| 6 April to 5 April | 7 May |
Find a receipt in December? Log it. The next update carries it.
Which is good news for the receipt you find in the door pocket in December. Log it when you find it. The next cumulative update carries it. You don’t resubmit anything.
What happens if your records are late or thin
For the 2026–27 tax year, HMRC’s penalties page says plainly: “There are no penalties for missing a quarterly update deadline for the 2026 to 2027 tax year.” You still have to send them before you can file your return, but a late one this year costs nothing.
From the year after, it’s a penalty point per missed deadline, a £200 penalty at four points, and points drop off after 24 months if you stay under the threshold.
Keep the records, though. HMRC says you “will need to keep your digital records for at least 5 years after the 31 January submission deadline for a tax year.” That’s the proof — receipts, statements, invoices or copies of them. Not in the van. Somewhere you can find them in 2032.
So we built it into the chat you already live in
The Back Office isn’t an app to download. It’s WhatsApp — or Telegram if that’s your one — with Jan running the back office behind it.
Trade counter, 7:40am. You take the printed receipt and photograph it. Jan logs it against the job you tell her to. Invoices you send through Jan are logged the same way on the income side. So when a quarterly update comes round, the totals are sat there for you or your accountant, instead of in the door pocket.
Straight with you: Jan drafts, you approve. The Back Office keeps your books MTD-ready — tidy, digital, categorised all year. It doesn’t file your return or your quarterly updates, and it isn’t HMRC-approved software. The submission to HMRC is made by you or your accountant, through compatible software. £29 a month. Flat.
MTD records for tradespeople: quick FAQ
Do I have to upload receipts to HMRC under MTD?
No. HMRC receives category totals in your quarterly updates, never individual receipts or invoices. You keep the receipts, or copies of them, as proof for at least five years.
What counts as a digital record for Making Tax Digital?
A record of income or expenses created and stored in software that works with MTD for Income Tax, showing the amount, the date and the category.
Is a photo of a receipt enough?
As proof, yes — HMRC accepts copies of supporting documents. As the record, no — the date, amount and category still have to be logged in your software. A photo that gets read into a dated, categorised entry covers both.
What expense categories does MTD use?
The same as Self Assessment. For a sole trader that’s the fourteen expense boxes on the SA103 — materials, subcontractors, wages, van and travel, premises, repairs, phone and office, advertising, loan interest, bank charges, bad debts, professional fees, depreciation and other.
Do I need to categorise if my turnover is under £90,000?
Not in detail. Sole traders with turnover under £90,000 from a trade only need to record whether each transaction is income or an expense. Your accountant may still want categories for the year-end return.
Are quarterly updates cumulative?
Yes. Every update covers from 6 April to the end of that period, so a late receipt goes into the next update rather than needing a resubmission.
How long do I keep records as a sole trader?
At least five years after the 31 January deadline for that tax year. Records for 2026–27 need keeping until at least the end of January 2033.
What if I miss a quarterly update this year?
For 2026–27 there is no penalty for a late quarterly update. You still have to send it before you can file your return. From 2027–28 it’s a penalty point per miss, with a £200 penalty at four points.
MTD didn’t ask for your receipts. It asked for three fields and a bit of discipline. Log it at the counter and the Sunday never happens.
Where these figures come from
Every number in this guide is linked to its source below, with the date we checked it. Rules change — if you are reading this a long way from the date at the top, check the originals.
- Quarterly updates are totals per category; HMRC does not receive individual receipts or invoices; updates are cumulative from 6 April; standard and calendar periods and the 7 August / 7 November / 7 February / 7 May deadlines — GOV.UK, Use Making Tax Digital for Income Tax: Send quarterly updates: gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates
- Definition of a digital record; each record needs the amount, the date and a category; same categories as Self Assessment; the under-£90,000 simplified option for sole traders; keep original records or copies; digital links between software; bank feeds; daily gross takings; keep records at least 5 years after the 31 January deadline — GOV.UK, Use Making Tax Digital for Income Tax: Create digital records: gov.uk/guidance/use-making-tax-digital-for-income-tax/create-digital-records
- Self-employment expense boxes 17 to 30 (cost of goods, construction industry payments to subcontractors, wages, car/van/travel, rent/rates/power/insurance, repairs, phone/stationery/office, advertising, loan interest, bank charges, irrecoverable debts, professional fees, depreciation, other) — HMRC, Self-employment (full) SA103F 2026 form: assets.publishing.service.gov.uk/media/69c2635b13101e9908704b36/SA103F_2026.pdf (via gov.uk/government/publications/self-assessment-self-employment-full-sa103f)
- What proof to keep: receipts for goods and stock, bank statements, sales invoices, till rolls — GOV.UK, Business records if you’re self-employed: What records to keep: gov.uk/self-employed-records/what-records-to-keep
- Keep records at least 5 years after the 31 January deadline; estimated and provisional figures if records are lost — GOV.UK, Business records if you’re self-employed: How long to keep your records: gov.uk/self-employed-records/how-long-to-keep-your-records
- No penalties for missing a quarterly update in 2026–27; penalty points, 4-point threshold, £200 penalty, 24-month expiry — GOV.UK, Penalties for Making Tax Digital for Income Tax: gov.uk/guidance/penalties-for-making-tax-digital-for-income-tax
- MTD for Income Tax thresholds: qualifying income over £50,000 from 6 April 2026 (2024–25 return), over £30,000 from April 2027, over £20,000 from April 2028 — GOV.UK, Find out if and when you need to use Making Tax Digital for Income Tax: gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax
- Qualifying income is total income from self-employment and property before expenses (turnover) — GOV.UK, Work out your qualifying income: gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax
All sources checked against GOV.UK on 21 October 2026.