Digital receipts
Contents
Making Tax Digital
Benefits of Digital Receipts
Free Digital Records Storage
Making Tax Digital (MTD) is a government initiative in the UK aimed at making it easier for individuals and businesses to keep track of their tax affairs and submit their tax returns electronically. Under a phased programme, the self-employed and landlords will be required to keep digital records of all their transactions, including sales, purchases, and expenses.
VAT registered businesses were already required to store digital records since 1 April 2022.
By using free storage software options, you can easily save and manage your digital receipts for your business. Just choose the one that best fits your needs and start organising your expenses.
Making Tax Digital
Making Tax Digital
Here is a simple guide to the UK's Making Tax Digital (MTD):
Who is affected by MTD: MTD applies to VAT-registered businesses with a taxable turnover above the VAT threshold, which is currently £85,000. If you meet this criteria, you will need to keep digital records of your VAT transactions and use MTD-compatible software to submit your VAT returns to HM Revenue and Customs (HMRC). From April 2026, sole traders earning over £50,000 will have to switch to using Making Tax Digital (MTD) for their income tax.
Keeping digital records: To comply with MTD, you will need to keep digital records of your VAT transactions. This includes invoices, receipts, and any other relevant VAT-related documents.
Using MTD-compatible software: To submit your VAT returns under MTD, you will need to use MTD-compatible software. There are a number of MTD-compatible software products available, including cloud-based and desktop solutions, so you can choose the option that best suits your needs.
Signing up for MTD: To sign up for MTD, you will need to go to the HMRC website and follow the instructions to enrol. You will need to provide your VAT registration number and a valid email address.
Submitting your VAT returns: Once you have enrolled in MTD, you will need to submit your VAT returns electronically through your MTD-compatible software. You will need to submit your returns by the due date, which is usually the end of the month following the end of your VAT accounting period.
Keeping your software up to date: To continue to comply with MTD, you will need to keep your MTD-compatible software up to date. This may include downloading software updates and ensuring that your software is compatible with any changes to the MTD requirements.
Benefits of Digital Receipts
Benefits of Digital Receipts
The benefits of digital receipts for businesses include:
Improved record-keeping: Digital receipts make it easier for businesses to keep track of their financial transactions and expenses.
Increased accuracy: Digital receipts reduce the risk of errors and omissions in financial records.
Better compliance: By having a more accurate and complete picture of a business's financial activity, HMRC can more easily monitor compliance with tax regulations.
Increased efficiency: By digitising the record-keeping process, businesses can reduce the time and resources they spend on bookkeeping.
Free Digital Records Storage
Free Digital Records Storage
Here is a simple guide to free software for saving digital receipts in the UK:
Google Drive: Google Drive is a free online storage service that can be used to store digital receipts. Simply take a photo of your receipt using your smartphone and upload it to Google Drive. You can then access your receipts from any device with an internet connection.
Microsoft OneDrive: Microsoft OneDrive is a cloud-based storage service that comes with 5GB of free storage. You can use it to store digital receipts and access them from anywhere with an internet connection.
Evernote: Evernote is a free note-taking app that can be used to save digital receipts. Simply take a photo of your receipt and add it to a note in Evernote. You can then organise your receipts by category and search for them easily.
Expensify: Expensify is a free expense tracking app that can be used to save digital receipts. Simply take a photo of your receipt and the app will extract the relevant information, such as the amount and date, and add it to your expenses.
Dropbox: Dropbox is a cloud-based storage service that comes with 2GB of free storage. You can use it to store digital receipts and access them from anywhere with an internet connection.
Hurdlr: Hurdlr is a free expense tracking app that can be used to save digital receipts. Simply take a photo of your receipt and the app will automatically categorise your expenses and track your spending.