"Digital record keeping" is one of those phrases that gets repeated in every MTD article without much explanation. It sounds like it should be obvious. It isn't — because HMRC has specific requirements about what counts, what doesn't, and how your data needs to flow through to submission.
Here's what it actually involves.
What HMRC means by "digital records"
A digital record is not a scanned receipt, a photo of an invoice, or a folder of PDFs. What HMRC requires is that the key details of each business transaction — the date, the amount, and the category — are recorded electronically in compatible software.
You don't need to scan every receipt or upload bank statements. You need a digital log of your transactions that your software can use to generate your quarterly updates.
How to keep compliant records
HMRC recognises two approaches. The first is MTD-compatible software — a single app that handles both your record keeping and your HMRC submissions. You enter your income and expenses, and the software sends your quarterly summary directly to HMRC. No gap in the chain.
The second is spreadsheets with bridging software. You can still use spreadsheets, but bridging software must connect them to HMRC. The critical point: data must flow electronically from your spreadsheet through to submission. You cannot copy and paste totals or manually re-type figures. HMRC calls this the "digital links" requirement.
For most self-employed healthcare professionals, dedicated software is the simpler route. Spreadsheets with bridging are technically compliant, but add complexity.
What doesn't count
A few things that feel like digital record keeping but don't meet HMRC's requirements: a folder of scanned receipts without the data logged in software; a paper notebook that you type up at the end of the quarter; an Excel file with quarterly totals but no individual transactions; and copying and pasting figures between systems. All of these break the digital chain HMRC requires.
Building a practical habit
For self-employed doctors and healthcare professionals, most income comes from a small number of sources — agencies and trusts — and expenses fall into predictable categories: GMC registration, indemnity cover, mileage, CPD courses, professional subscriptions.
A routine that works: log income when you're paid, log expenses as they happen (or batch them weekly), review everything once a month, and submit quarterly. If you're consistent, the quarterly submission becomes a quick review and confirmation — not a scramble to reconstruct the past three months.
HMRC has confirmed a soft landing for the first year, meaning penalty points won't apply for late quarterly submissions during 2026/27. That gives you room to adjust — but your records still need to be digital and in compatible software from the start.
The key takeaway
MTD record keeping isn't about digitising paperwork. It's about recording income and expenses directly in compatible software, so there's a clean digital trail from each transaction through to HMRC. For self-employed healthcare professionals with straightforward finances, the secret isn't any clever system — it's consistency. Log as you go, and the quarterly submission takes care of itself.
Duly Filed is built specifically for self-employed healthcare professionals navigating MTD for the first time. We handle the HMRC connection, the submission formatting, and the quarterly deadlines — so you can focus on your patients. Find out more.