Digital records need to be kept in functional compatible software, which means software or a set of software programs which must:

• Record and preserve digital records.
• Send the data to HMRC through the API.
• Receive information from HMRC via the API. 

Broadly a digital link allows data to be imported or exported between programs without the need for manual intervention.

Find out more about MTD

• Making Tax Digital Help Centre
• Gov.uk - Making Tax Digital for VAT