Digital record-keeping means more than simply taking photos of receipts

Your records should contain enough information about each transaction, including the date, amount and description of the income or expense and, where relevant, details of the customer or supplier. This helps show where the figures in your accounts come from and how your tax liability was calculated.

Photos or scans of receipts can be useful evidence for expenses, but they do not replace organised accounting records on their own. The information should be properly recorded and structured so that it can be easily checked when needed.

For businesses and individuals subject to Making Tax Digital (MTD) requirements, keeping digital records is particularly important. Using suitable accounting software can help keep information organised, reduce errors and make it easier to meet HMRC requirements.