PayPal · MTD records

Which PayPal report do I need for Making Tax Digital?

Last updated 28 October 2026. Every fact below is checked against the sources listed at the end. General information, not tax advice.

Short answer: Use the PayPal Activity Download report. It lists each sale, refund and fee with its date, which is what you need to build digital records and split them into MTD update periods. A digital record needs the amount, the date the income was received or the expense occurred, and its category (the same categories as Self Assessment).

How to download the PayPal Activity Download report

Sign in to your PayPal business account and open the reports area (PayPal's documentation calls it the reporting portal).
Choose Activity download and set the date range to the MTD period (up to 12 months per report).
Pick CSV as the format and download it.

What the PayPal file contains

PayPal's Activity Download report is available as CSV, tab-separated or PDF, for any period in the last 7 years, with up to 12 months in each report.
Each row has a Gross amount (including fees), a Fee amount and a Net amount (typically gross minus fees).
CSV reports are limited to 50,000 records; bigger reports are split into several files in a ZIP.

Getting the dates right

If you also sell on Etsy or eBay, check that PayPal rows for marketplace sales aren't counted a second time. Each quarterly update covers the tax year so far: from the start of the tax year to the end of the update period. With standard update periods the first update for 2027 to 2028 covers 6 April to 5 July 2027; see all 2027 to 2028 deadlines.

Keep the original downloads unchanged alongside your records, so you can check figures later. If you use more than one software product, your record-keeping software must be digitally linked to the software that sends your submissions. Linked spreadsheet cells, emailing a spreadsheet to import, CSV import and export, and downloading and uploading files are all digital links. Writing figures out again or copying and pasting them isn't.

Worked example: a file that crosses a period end

Example figures A PayPal export run for 1 June to 31 July 2027 crosses the end of update 1 (5 July). Made-up figures for a fictional seller, not real data.

Rows	Sales	Goes into
Sales dated 1 June to 5 July	£192.60	Update 1 (6 Apr to 5 Jul)
Sales dated 6 to 31 July	£706.20	Update 2 (6 Apr to 5 Oct)
Whole export (sales)	£898.80	Split by date

Each row goes into the period its own date falls in, not the period the file or payout belongs to.

Turn your PayPal exports into MTD-ready records

TidyTill reads Etsy, eBay, Amazon, Shopify and PayPal exports, works out gross turnover, splits it into MTD periods and flags gaps and duplicates. Upload your exports and see your totals, quarters and Health Check free before you pay. Then £19 one-off for a workbook or £49 a year for unlimited workbooks. Paid workbook downloads open very soon; the free preview works now.

Try the free preview Get launch updates

Questions

Can I use my PayPal payouts instead of the Activity Download report?

Payouts are what's left after fees and refunds, so they understate turnover. HMRC says turnover for the threshold includes gross income from self-employment and property before any tax allowances or expenses are deducted. See PayPal payouts vs turnover.

Do I need to send HMRC the file itself?

No. Quarterly updates are totals of your self-employment and property income and expenses. They're summaries, not tax returns, and HMRC doesn't receive individual receipts or invoices.

Can I keep my records in a spreadsheet?

You can keep using spreadsheets for your records, but you'll need software that links to them (sometimes called bridging software) to send quarterly updates and your tax return.

Sources

Activity Download report (PayPal Developer, checked 28 October 2026)
Using Making Tax Digital for Income Tax for the first time (GOV.UK, checked 28 October 2026)
Create digital records (Making Tax Digital for Income Tax) (GOV.UK, checked 28 October 2026)
Send quarterly updates (Making Tax Digital for Income Tax) (GOV.UK, checked 28 October 2026)
Sole traders and landlords earning more than £30,000 urged to act now (HMRC, 5 October 2026) (GOV.UK, checked 28 October 2026)

TidyTill is a record-keeping aid only. This page is general information, not tax advice. TidyTill is not HMRC-recognised software and it doesn't submit anything to HMRC: you send quarterly updates and your tax return through HMRC-recognised software. Rules and dates can change, so check GOV.UK or ask an accountant about your own situation.