Use Making Tax Digital for Income Tax Create digital records
How to create and store digital records of your self-employment and property income and expenses for Making Tax Digital for Income Tax.
Official website: gov.uk00
How to use the service
You can digitally link your records in different ways, including: using linked cells in spreadsheets — for example, if you have a formula in one sheet that mirrors the source’s value in another cell and the cells are linked emailing a spreadsheet containing digital records, so you can import the information into another software product transferring a set of digital records onto a portable device (for example, a pen drive, memory stick or flash drive) and physically giving this to someone who imports the data into their software XML, CSV importing and exporting, and downloading and uploading files using an automated data transfer using an application programming interface (API) transfer You do not need to digitally link: records of income that are not self-employment or property income and expenses — for example, income from dividends or savings software that’s not used to create digital records of self-employment and property income and expenses — for example, software that takes bookings or a till system that records sales receipts software that’s only used to submit your tax return with software used to keep digital records and send quarterly updates — the first type of software gets the data directly from HMRC If you are a landlord that jointly lets a property, you do not need to link your digital records to the records of the other landlord.
Requirements
You need to create and store digital records of your self-employment and property income and expenses, such as: self-employment income — including sales, takings and fees self-employment expenses — including the cost of stock, travel costs, office costs and financial costs property income — including rent, premiums for the grant of a lease, reverse premiums and inducements property expenses — including rent, costs of repairs, maintenance or other services When you create records of your income or expenses, you will need to record the: amount date when the income was received or expenses incurred category — the type of category you will use depends on the type of business you have Making Tax Digital for Income Tax uses the same categories of income and expenses as Self Assessment.
Processing time
You will need to keep your digital records for at least 5 years after the 31 January submission deadline for a tax year. This is the same amount of time you need to keep records for Self Assessment.
Official source
Use Making Tax Digital for Income Tax Create digital records
retrieved: