What counts as "digital records" under Making Tax Digital?

Under MTD you need to keep digital records of your business transactions — essentially the same information you'd have recorded manually (sales, purchases, VAT on each transaction) but entered and stored in MTD-compatible software rather than on paper or in a way that requires manual re-typing into HMRC's systems. Once a transaction is entered digitally, any transfer of that data between different pieces of software (for example from a spreadsheet to your filing software) generally needs to happen via a "digital link" rather than being copied and pasted by hand. If you're not sure whether your current process qualifies, an accountant or your software provider can confirm what's compliant.