What Records Do I Really Need to Keep (and For How Long)?

When you’re running a small business, there’s plenty to keep track of and knowing which records you actually need to keep (and for how long) can feel confusing.

Do you really need to keep that receipt for printer ink?

What about your old mileage logs?

Is it OK to go fully digital?

The good news is, it doesn’t have to be complicated. Here’s a simple guide to what records HMRC expects you to keep, how long to keep them, and how to store them in a way that makes tax time easier.

Why Record-Keeping Matters

Whether you’re a sole trader or a limited company, HMRC requires you to keep business records that support the figures in your tax returns.

These records are your “evidence” if HMRC ever reviews your return, these are what they’ll want to see.

Good record-keeping also helps you:

• Claim all allowable expenses

• Stay organised at year-end

• Avoid fines or penalties

• Feel confident your books are accurate

What Records Should You Keep?

At a minimum, you should keep records of:

• All income: invoices, till receipts, sales logs

• All expenses: receipts, bills, bank statements

• Bank transactions: business account and credit card statements

• Mileage logs: date, journey, miles travelled, reason

• VAT records (if registered): returns, input and output tax

• Payroll records (if you have staff): payslips, RTI reports, pension payments

• Loan or asset details: purchase invoices, finance agreements

How Long Do I Need to Keep Them?

• Sole traders and individuals: Keep records for 5 years after the 31 January submission deadline

  
  

  (For example, if you filed your 2023–24 return by 31 January 2025, you must keep records until 31 January 2030)

• Limited companies: Keep company records for 6 years from the end of the financial year they relate to and longer if:

  
  

  • A transaction covers more than one year

  • The company has bought something it expects to last a long time

  • You sent your return in late or under HMRC enquiry

Can I Keep Records Digitally?

Yes, HMRC accepts digital records. That means:

• Scanned receipts or clear photos

• Online invoices or statements

• Cloud accounting software (like Xero or QuickBooks)

Just make sure your records are:

• Legible

• Accurate

• Backed up regularly

What You Can Safely Ditch

You don’t need to keep:

• Duplicate receipts

• Notes or reminders with no financial relevance

• Personal bank statements (if not used for business)

When in doubt, keep it especially if it’s tied to an income or expense.

Final Thought

You don’t need to keep shoeboxes full of paper anymore but you do need to keep your records clear, complete, and accessible.

Whether you’re still using folders or have moved everything into the cloud, building tidy habits now will make tax time easier and protect you if HMRC ever comes calling.

Need help getting your records in order or want to switch to a digital system that actually makes life easier?

Get in touch, we’re here to keep things simple and stress free.

Emma

Barleyfields Accountancy