Making Tax Digital – Self Employment
① How to use this tool
What is this tool for?
This tool helps you keep digital records of your self-employment income and expenses and prepare the information required for your MTD quarterly updates.
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You can use the tool for record keeping and calculations only, or select Prepare records for my accountant / IRIS if you would like your accountant to prepare and submit your quarterly update.
IRIS is tax software used by accountants to prepare and submit tax returns and MTD updates.
You can also use the records produced by the tool to prepare and submit your quarterly update yourself using compatible MTD software.
Expenses treatment
Regular – normal recurring business expenses. These are recorded at 100% business use.
Non-regular – expenses that are not part of the normal recurring operation of the business, have a private-use element, or may require further consideration. The tool checks the expense and may ask additional questions or require you to confirm the business-use percentage.
Calculated – expenses where the allowable amount is determined using a specific calculation rather than simply using the amount paid.
Checking whether an expense is allowable
For Non-regular expenses, the tool uses the description you enter to identify the relevant tax treatment. It checks the expense against its HMRC-based rules and, where necessary, asks additional questions about the circumstances of the expense.
Where sufficient information is available, the tool will indicate ALLOWABLE, NOT ALLOWABLE, CALCULATED or NEEDS REVIEW. If you need advice, you can select Ask my accountant. Your questions are collected and sent together when you complete the quarter in Prepare records for my accountant / IRIS mode.
② Business details and trading information
③ Income and Expenses
| Date | Partner name | Document no. | Description | Income £ | Expense £ | Gross £ | VAT rate | Net £ | VAT £ | Type | Expenses treatment | Category | Business use % | Help / calculation |
|---|
④ Import and Export
⑤ Quarter Summary
Questions for accountant
⑥ Quarter Closing
This does not submit anything to HMRC. It marks the records ready for accountant review / IRIS import.
Your IRIS Breakdown CSV and any accountant questions will be sent to your accountant. After completion, the records and accountant questions will be locked. To start again, you must clear all records.
Regular expenses
Use Regular for normal business expenses that arise as part of the usual day-to-day operation of your business and are wholly for business purposes.
For example, a plumber purchasing pipes, fittings and other materials for customer jobs would normally treat these as regular business expenses.
When Regular is selected, the tool automatically records the expense as 100% business use, so no separate business-use calculation is made.
If an expense is unusual, has a private element, or you are unsure whether it is fully allowable for tax purposes, select Non-regular instead. The tool can then check the expense and, where necessary, ask additional questions.
GP ZOLEE MTD TOOL
USER MANUAL
Making Tax Digital for Income Tax – Self-Employment
Software Version 8.29
1. Introduction
The GP ZOLEE MTD Tool is a free online application designed to help self-employed individuals maintain digital records of their business income and expenses and prepare information for Making Tax Digital (MTD) quarterly updates.
The current version includes multi-stage expense recognition: automatic HMRC rule matching, dictionary suggestions and optional AI-assisted expression recognition.
With the tool, you can:
Record your business income and expenses.
Calculate the business proportion of expenses.
Check certain expenses against HMRC-based tax rules.
Use simplified expense calculators.
Save your work and continue later.
Download your records in PDF, Excel and CSV formats.
Prepare and send quarterly information to your accountant.
AI helps identify an existing dictionary expression. It does not independently determine whether an expense is tax deductible.
No bank feeds required. No complicated accounting software. No subscription.
You can use the tool free of charge for record keeping, calculations and downloading your records.
If you would like GP ZOLEE ACCOUNTING to submit your quarterly MTD update to HMRC, this is a separate paid service.
Important: The tool does not automatically submit your quarterly update to HMRC.
2. Getting Started
When you open the tool, complete the business information section.
Trading Name
Enter the name under which you carry out your self-employed business.
For example: John Smith – Electrician.
Tax Year
Select the appropriate tax year:
2026/27
2027/28
VAT Registered?
Select:
No if your business is not VAT registered.
Yes if your business is VAT registered.
The transaction entry fields will automatically change depending on your selection.
How Will You Use This Tool?
There are three options.
Record keeping / calculation only
Use this option if you want to record, calculate, save and download your business records without sending them to your accountant.
Prepare records for my accountant / IRIS
Use this option if you want to prepare your quarterly records and send them to GP ZOLEE ACCOUNTING.
Your accountant can then use the information to prepare and submit your MTD quarterly update to HMRC under the agreed service arrangements.
MTD / HMRC submission
Use this option to prepare records for an MTD submission using compatible MTD software.
Selecting this option does not automatically submit information to HMRC.
Personal and Business Details
Depending on your selected mode, you may need to enter:
Unique Taxpayer Reference (UTR)
National Insurance number
Your full name
Home address
Email address
Business activity
Normal business location
Your UTR and National Insurance number are optional in record-keeping mode but required in the other modes.
When preparing records for your accountant, your name, home address and email address are also required.
Your accountant will use your email address to reply to your questions.
Business Activity
Describe the main activity of your business.
For example:
Plumbing and heating installation and repairs.
Business Location
Select where you normally carry out your business, such as:
Home
Office
Shop, salon or commercial premises
Clients' premises
Various sites or locations
Vehicle or mobile business
Other
You can also provide additional location details.
3. Selecting the Quarterly Update Period
Select the relevant MTD update period.
| Period | Dates covered | Deadline |
| Q1 | 6 April – 5 July | 7 August |
| Q2 | 6 April – 5 October | 7 November |
| Q3 | 6 April – 5 January | 7 February |
| Q4 | 6 April – 5 April | 7 May |
Important: The tool uses cumulative update periods.
For example, when preparing Q2, your records should cover 6 April to 5 October, not just the second three-month period.
Check that you have included the correct transactions for the selected period.
4. Entering Income and Expenses
Click + Add transaction to create a new entry.
Complete the following fields.
Date
Enter the transaction date in DD/MM/YYYY format.
You can also use the date picker.
Partner Name
Enter the customer or supplier name.
Document No.
Enter the invoice or receipt number.
Description
Describe the transaction clearly.
Examples:
Customer payment for electrical installation
Plumbing materials purchased for a customer job
Monthly mobile phone bill
Business vehicle mileage
A clear description is particularly important when the tool checks whether an expense is allowable.
Category
Select the appropriate income or expense category from the dropdown list.
The categories correspond to those used for the IRIS breakdown.
Businesses Not Registered for VAT
Enter the transaction amount in either:
Income £, or
Expense £.
Do not enter the same transaction as both income and expense.
VAT-Registered Businesses
Enter:
Gross £
VAT rate
Type – Income or Expense
The tool calculates the net amount and VAT amount from the gross figure and selected VAT treatment.
Available VAT selections include:
20%
5%
0%
Exempt
Outside scope
Check that you have selected the correct VAT treatment before continuing.
5. Understanding Expense Treatments
Every expense must be assigned one of three treatments.
5.1 Regular Business Expense
Choose Regular for normal business expenses that arise as part of the usual day-to-day operation of your business and are wholly for business purposes.
For example:
A plumber purchases £120 of fittings used exclusively for customer work.
The expense is recorded at 100% business use.
The tool automatically records Regular expenses at 100% business use, so no separate business-use calculation is normally required.
If you change the business-use percentage below 100%, the tool asks you to confirm your decision.
Important: Regular expenses are not checked by the HMRC Allowability Engine.
Selecting Regular does not mean that HMRC has approved the expense.
Only use this option when you are satisfied that the expense is wholly business-related and appropriately deductible.
If an expense is unusual, has a private element or you are unsure whether it is fully allowable, select Non-regular instead.
5.2 Non-Regular Expense
Choose Non-regular for expenses that:
Are not part of normal recurring business operations.
Have both business and private use.
Require additional consideration before claiming tax relief.
For example:
You pay £60 for a mobile phone bill and estimate that 60% relates to business use.
Enter:
Expense: £60
Business use: 60%
The resulting calculation is:
| Calculation | Amount |
| Total expense | £60.00 |
| Business use | 60% |
| Allowable expense | £36.00 |
| Private/disallowed amount | £24.00 |
The tool may check the description against HMRC-based rules and ask additional questions.
5.3 Calculated Expense
Choose Calculated when the allowable expense is determined using a specific calculation rather than simply taking a percentage of an invoice.
A Non-regular expense may also be identified as CALCULATED through the HMRC rule and decision-question process. In that case, a relevant simplified calculator may be offered.
The simplified calculator is optional: where HMRC rules permit, you may use another valid method of calculating the deductible amount. Check eligibility and avoid double claims.
Click Calc and select the appropriate calculation.
The available calculators are:
Vehicle mileage – simplified expenses
Working from home – simplified expenses
Living at business premises – simplified expenses
The calculated amount is inserted into the transaction record.
6. How the Tool Checks Your Expenses
The V8.29 recognition process applies to Non-regular expenses. Regular expenses are not automatically checked by the HMRC engine; Calculated expenses can also be entered directly using an appropriate calculation.
Step 1 – Automatic HMRC rule matching
Enter a clear description of what you purchased and, where relevant, why it was needed for the business. The tool checks the description against HMRC-based recognition expressions using its existing matching and scoring rules.
If a sufficiently reliable rule is found, the tool presents the applicable rule or related decision questions. A match does not mean HMRC has approved the claim.
Step 2 – Dictionary suggestions
If automatic matching does not identify a reliable rule, the tool searches its expanded dictionary of approximately 1,450 the expense expressions linked to HMRC-based rules.
It may show up to ten candidate expressions. Choose the one that genuinely describes your expense. For unclear descriptions or too many matches, the tool may ask you to add more detail.
Where a selected expression relates to several HMRC rules, you may be asked to select the rule appropriate to your circumstances. With too many matches for a multi-word description, the tool may move to AI recognition.
Step 3 – AI-assisted expression recognition
If dictionary matching is inconclusive, AI recognition can be offered, or you may choose it yourself. The AI searches for suitable expressions in the existing permitted dictionary; it does not invent tax rules or decide deductibility.
The tool displays the best suggested expression first. You can accept it or ask to see up to two alternatives. Only select an expression that correctly reflects the expense.
After selection, the tool uses the associated HMRC rule and any decision questions. If no suggestion fits, revise the description or choose NEEDS REVIEW.
AI availability in Version 8.29
The current Cloudflare Worker does not enforce an AI recognition quota. A quota may be introduced in a future version; any proposed limit is not active in V8.29.
Step 4 – Answering HMRC decision questions
Some rules ask about private use, business purpose or the appropriate business-use percentage. Answer using your actual circumstances. The tool may request a percentage, indicate a different rule is required or recommend accountant review.
Step 5 – Understanding the result
ALLOWABLE – The relevant rule indicates that the expense or appropriate business proportion may be deductible, subject to the facts and applicable conditions.
NOT ALLOWABLE – The relevant rule indicates that the expense is not deductible. The tool may automatically set business use to 0%.
CALCULATED – The expense may require a specific calculation. A simplified calculator may be available, but is optional if another lawful calculation method is appropriate.
NEEDS REVIEW – The information is insufficient for a reliable conclusion. Review the description and consider asking your accountant. NEEDS REVIEW is not approval to claim the expense.
If the tool cannot find a reliable match
You can clarify the description, consider dictionary or AI suggestions when offered, or use Ask my accountant. Questions are collected with your quarterly accountant request and are not sent immediately when entered.
Important: These checks support record keeping and tax decisions; they do not replace HMRC guidance, supporting evidence or professional advice.
7. Using the Expense Calculators
7.1 Vehicle Mileage
Select:
Calculated → Calc → Vehicle mileage – simplified expenses
Complete the following fields.
Vehicle Type
Choose:
Car or goods vehicle
Motorcycle
Business Miles Already Counted Earlier in This Tax Year
Enter the total number of business miles already included in previous mileage claims during the same tax year.
This is not your vehicle's odometer reading.
Business Miles for This Entry
Enter only the additional business miles being claimed in the current entry.
Example
Suppose you have already claimed 9,800 business miles during the tax year and now want to record another 600 miles.
Enter:
Business miles already counted: 9,800
Business miles for this entry: 600
The calculator splits the additional mileage across the applicable mileage bands.
Keep supporting mileage records showing the dates, business journeys and distances travelled.
7.2 Working From Home
Select:
Calculated → Calc → Working from home – simplified expenses
Enter the number of qualifying hours worked from home for each month included in the entry.
The calculator uses these monthly bands:
| Monthly business hours | Flat-rate amount |
| Fewer than 25 hours | £0 |
| 25–50 hours | £10 |
| 51–100 hours | £18 |
| 101 hours or more | £26 |
The tool initially displays three months.
Use + Add month if you need additional months.
Click Calculate to record the result.
Telephone and internet costs are not included in this flat-rate calculation.
7.3 Living at Business Premises
This calculation may be relevant where you live at premises used for your business.
Enter:
Total actual premises expenses for the period
Number of people living at the premises
Number of months covered
The calculator applies a private-use adjustment based on the number of occupants.
| Number of occupants | Monthly private-use adjustment |
| 1 | £350 |
| 2 | £500 |
| 3 or more | £650 |
The private-use adjustment is deducted from the actual premises expenses entered.
This method is not suitable for every business or property arrangement.
Check the relevant conditions before using it.
8. Getting Help From Your Accountant
If you need assistance with a transaction, click the ? button.
Depending on the circumstances, the tool may display an HMRC-based explanation or offer the option Ask my accountant.
You may be asked to provide:
Your business activity
Your normal business location
Additional details about the transaction
Your question
Click Add to accountant request to save the question.
You can review your questions in the Questions for accountant section.
General Tax Questions
The tool also provides an Ask a general tax question option.
Enter your question and click Add question.
Questions are collected with your accountant request and are not sent individually when entered.
They are sent together when you complete the quarter using the accountant/IRIS mode.
Professional assistance may be subject to an additional fee.
See the MTD Tool Pricing page for details.
9. Duplicate Transaction Checks
The tool includes duplicate detection to help prevent the same transaction from being recorded twice.
It checks document numbers and other transaction details.
If a possible duplicate is detected, you may be asked to review the existing entry.
Depending on the match, you may be able to:
Keep the new entry.
Remove the new entry.
Close the notification and review the records.
An exact duplicate is identified using matching transaction date, partner name, document number and amount.
Important: Duplicate detection is an additional safeguard, not a substitute for checking your records.
10. Understanding the Quarter Summary
The Quarter summary section displays:
Total Income
The total income entered.
Total Expenses
The total recorded expenses before private-use adjustments.
Disallowed / Private
The portion of expenses excluded from allowable business expenses.
Allowable Expenses
The amount remaining after the disallowed/private portion is deducted.
The tool also provides a breakdown by IRIS category.
Review these totals regularly to identify missing transactions or incorrect amounts.
11. Saving Your Work
You do not have to complete the entire quarter in one session.
Click Save draft file.
The tool downloads a JSON file containing your current records and related information.
The filename identifies the business, tax year and quarter.
Keep this file in a safe location on your device.
The JSON file is your working draft. It is different from the PDF, Excel and CSV reports.
Do not edit the JSON file manually.
Restoring a Saved Draft
Click Load draft file and select a previously saved GP ZOLEE MTD draft file.
If your current records are empty, the saved draft can be restored.
If transactions are already present, the tool offers three options.
Add to current records
Adds transactions from the saved file to your existing records.
Exact duplicates are skipped. Possible duplicate document numbers may be reported for checking.
Replace current records
Replaces the current records with those stored in the selected draft file.
Cancel
Stops the loading process without replacing your current records.
Important: Before replacing records, save a separate copy of your current draft if you may need it later.
The draft-loading function does not automatically reconcile every difference between two versions of your records.
12. Downloading Your Records
The tool provides several download options.
Download IRIS Breakdown – PDF
Downloads a summary of transactions grouped by IRIS category, including income, expenses, disallowed amounts and allowable expenses.
Export IRIS Breakdown CSV
Downloads transaction information in a CSV format intended for the accountant's IRIS workflow.
Download Records – Excel
Downloads your transaction records as an Excel workbook, including business information.
Download Records – PDF
Downloads a PDF representation of your records and the tool's displayed information.
Save Draft File
Downloads a working-data file in JSON format for later restoration into the tool.
Important: These files serve different purposes.
A PDF or Excel report is not a replacement for the JSON draft file if you intend to continue entering or modifying records in the tool.
Keep your downloaded records and original supporting documents securely.
13. Completing Your Quarterly Records
Before completing the quarter:
Check that you have selected the correct tax year and update period.
Confirm that all income and expenses for the selected period have been entered.
Review expense treatments and business-use percentages.
Check any potential duplicate transactions.
Review your quarterly totals.
Resolve any incomplete or incorrect entries.
Save a copy of your draft if you may need to continue working with the data.
In the Quarter completion section, tick:
I confirm that I have entered all business income and expenses for this update period.
Then click Mark quarter as complete.
The tool checks the records for missing or incomplete information.
If an entry requires correction, the relevant field may be highlighted.
Record-Keeping Mode
If you selected Record keeping / calculation only, the tool checks the records and displays a confirmation.
It does not send information to your accountant.
Accountant / IRIS Mode
If you selected Prepare records for my accountant / IRIS, an additional confirmation appears.
Click Complete quarter and send to proceed.
14. What Happens When You Send the Quarter?
When you confirm completion in accountant/IRIS mode, the tool sends your quarterly information to your accountant and prepares your files for download.
A. Sending Information to Your Accountant
An email is sent to your accountant containing:
Your business and personal details.
The tax year and update period.
Your business activity and location.
Your questions for the accountant, if any.
The IRIS Breakdown CSV file as an attachment.
Your email address is included so your accountant can reply directly to your questions.
B. Downloading Your Files
The tool also starts downloading four files to your device:
IRIS Breakdown PDF
IRIS Breakdown CSV
Records Excel
Records PDF
Your browser may ask permission to download multiple files.
If a download is blocked, use the individual download buttons to obtain the missing file.
Successful Completion
Once your quarterly information has been successfully sent, the tool:
Confirms that the quarter is completed.
Displays the number of recorded transactions.
Confirms that your quarterly information has been sent to your accountant.
Locks the completed quarter.
Once locked, you cannot continue editing the transactions or accountant questions in that quarter.
If Sending Fails
If your quarterly information cannot be sent, the tool displays an error message.
Your records remain available so you can try again.
Files that were already downloaded remain on your device.
Important: Sending your records to your accountant does not mean that they have been reviewed or submitted to HMRC.
15. What Happens After Your Accountant Receives the Records?
Your accountant receives the quarterly information and any questions submitted with it.
If you have purchased the quarterly submission service, your accountant can review the information within the agreed scope and arrange submission to HMRC.
The basic review is intended to identify obvious or potentially non-allowable expenses from the information provided.
It does not include detailed verification of individual invoices or receipts.
If your accountant identifies a potential issue, they may contact you for clarification.
You are responsible for reviewing and correcting your own records.
Your accountant does not enter or amend transactions in the MTD Tool on your behalf.
Your accountant can then use the corrected information to submit or amend the relevant quarterly update where appropriate.
16. Locked Quarters and Corrections
Once a quarter has been successfully completed and sent, its transactions and accountant questions are locked.
The Clear function can be used to remove the current transaction records and start again.
Before clearing anything, make sure you have saved the necessary files.
Clearing records in the tool does not recall an email already sent to your accountant and does not cancel an HMRC submission.
If corrections are required after the quarter has been sent, contact your accountant and agree how to provide the corrected information.
17. Important Limitations
The GP ZOLEE MTD Tool is designed to assist with record keeping and quarterly MTD preparation.
It is not a complete accounting system.
In particular:
It does not connect to your bank account.
It does not automatically import invoices or receipts.
It does not verify the authenticity of supporting documents.
It does not check every Regular expense against HMRC rules.
It does not guarantee that every expense is correctly classified or allowable.
It does not automatically resolve every complex tax question.
It does not submit quarterly information directly to HMRC.
It does not prepare or submit your annual Self Assessment Tax Return.
It does not replace professional tax advice where individual circumstances require it.
You are responsible for ensuring that your records are accurate, complete and supported by appropriate documentation.
18. Frequently Asked Questions
Is the MTD Tool free?
Yes. You can enter your records, use the available calculations and download your files free of charge.
Do I need to connect my bank account?
No. All transactions are entered manually.
Can I save my work and return later?
Yes. Use Save draft file and Load draft file.
Can I use the tool if I am VAT registered?
Yes. Select VAT registered – Yes when entering your business details.
Can I add transactions from an older saved draft?
Yes. When current records already exist, choose Add to current records. The tool checks for exact duplicates.
Does completing a quarter mean HMRC has received my update?
No. The accountant workflow sends your records to your accountant, not directly to HMRC.
Can I ask my accountant questions?
Yes. You can add questions relating to your transactions or quarterly update. Professional assistance may be subject to an additional fee.
Does the quarterly service include my annual Self Assessment Tax Return?
No. The annual tax return is a separate service.
What should I do if a download does not appear?
Check your browser's Downloads folder and whether multiple downloads have been blocked. You can also try the individual download buttons.
Can AI decide whether my expense is allowable?
No. AI suggests existing dictionary expressions. The HMRC-based rule and your answers determine the indicated treatment.
What if the tool cannot recognise my expense?
Clarify the description, review dictionary or AI suggestions, or mark it NEEDS REVIEW and ask your accountant if necessary.
Must I use the simplified calculator for a CALCULATED expense?
No. The calculator is optional; another valid method may be used if the applicable tax rules permit.
19. Final Checklist
Before completing your quarterly update, make sure:
The correct business and tax year are selected.
The correct cumulative update period is selected.
All business income is recorded.
All business expenses are recorded.
Expense categories and treatments are checked.
Business-use percentages are reasonable.
Calculated expenses have been reviewed.
Duplicate transactions have been checked.
The quarter summary has been reviewed.
Your draft and required reports have been saved.
Your confirmation of completeness is accurate.
GP ZOLEE ACCOUNTING
MTD Tool – Self-Employment User Manual
This guide explains how to operate the GP ZOLEE MTD Tool. It is not a substitute for HMRC guidance or individual professional advice.
© 2026 G. P. ZOLEE CONSULTING LTD. All rights reserved. - MTD Self Employment Tool