Do I need to scan my receipts under Making Tax Digital?

There are two different taxes under the Making Tax Digital (MTD) regime as of the 2026/27 tax year: VAT, and income tax for sole traders and landlords. 

VAT 

Making Tax Digital for VAT has applied to all VAT-registered businesses since April 2022. Businesses are required to record transactions digitally and file their VAT returns using MTD-compatible software.  

As a business owner you are required to keep bookkeeping records. VAT records must be kept for six years in most cases but do check with your accountant if you are using a VAT scheme, as there are longer minimum times for some schemes. 

The six-year period begins on the date of the invoice or other document, or the date of preparation of a summary document e.g. a balance sheet. 

Income tax 

MTD for income tax began for sole traders and landlords with £50,000 or more qualifying income (as of 2024/25) on 6th April 2026. More taxpayers will be brought into MTD for income tax in 2027 and 2028. 

Digital records for MTD for income tax must be kept for at least five years after the submission deadline for that tax year. For 2026/27 the submission deadline is 31st January 2028, so digital records must be kept until at least 31st January 2033. 

For more on MTD for income tax dates and deadlines for 2026, see our guide here, 

Do my digital records need to include the receipts? 

HMRC specifies that some records must be kept digitally under MTD but crucially this does not include the underlying receipts when recording your expenses. HMRC does not insist that you keep scanned copies of receipts. So, it is up to you whether you hold on to the paper receipts or scan everything in. Clearly digital copies of receipts take up a lot less room and are much easier to search through though. 

At TaxAssist Accountants, we work with Dext, which is a receipt and expenses app that stores your scans and pictures of receipts and captures the information necessary for your bookkeeping records. Dext integrates with both QuickBooks and Xero, two digital bookkeeping software providers we also partner with.  

Last updated 6 Jul 2026 | First published 1 Mar 2019

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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