What is a digital link?
A digital link is an electronic transfer of data from one place to another within a software program or between different software programs, rather than manual transfer of data.
Examples of electronic transfer include export/import of data, linking cells using formulas (in spreadsheets).
Examples of manual transfer include re-typing, copying/pasting.
HMRC digital links requirements for MTD
Digital links are required between your digital records data and your quarterly submissions to HMRC, through one or more acceptable digital links.
This means that any transfer or modification of the transactions data to obtain the quarterly update figures, must be electronic and not manual.
The requirement for digital links starts from where the full digital records are kept.
Digital links when using VT Transaction+
If your transactions are in VT Transaction+ and the quarterly updates are submitted from VT Transaction+
Digital links are naturally in place between the transactions data and the quarterly update data, as all data is within the same program.
If your transactions are in another program instead of VT Transaction+ but the quarterly updates are submitted from VT Transaction+
In this situation, transactions are in another program and summary totals are transferred to VT Transaction+, where the quarterly updates are submitted. An acceptable digital link is required between data transferred from the other program to VT Transaction+.
What are acceptable digital links?
HMRC provides guidance on what are acceptable digital links in Using software for digital record keeping. These include exporting/importing data. You can import data into VT Transaction+ (but not VT Cash Book), using the Universal Input Sheet.
