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What Records Do I Need to Keep When Self-Employed?
Less catching up. Clearer figures when you need them.
Keep income, expenses and receipts together, then produce quarterly or end-of-year reports from your recorded figures.
IN THIS GUIDE
Good records let you explain the figures in your books without relying on memory. They do not have to be elaborate, but they do need to be complete, readable and easy to find.
Records of your income
Keep a record of sales and fees, with evidence that connects the amount to the work. Depending on your business, that could mean numbered invoices, job records, till records, platform statements or customer payment records.
- Dates and amounts for customer payments.
- Invoice, customer or job references.
- Cash income as well as card and bank-transfer income.
- Refunds, part payments and supporting platform statements.
- CIS deduction statements, if relevant to your work.
Keep unpaid invoices visible separately. When an amount is included in the tax figures depends on your accounting method, so do not treat ‘invoice sent’ and ‘payment received’ as interchangeable.
Records of your expenses
Keep receipts, supplier invoices and relevant statements, plus a note of what the purchase was for. For mixed business and personal use, retain the calculation supporting the business portion.
A bank statement can show a payment without explaining what you bought. Keep the invoice or receipt where available rather than assuming the payment description answers every question.
For example, a shared £60 bill with a supported £18 business element needs the original bill and an explanation of the split. Your record should help you understand that £18 months later. See the allowable expenses guide for the rules behind claims.
An easy way to organise the evidence
Choose a consistent reference, such as an invoice number or a date and supplier name, and use it in both the transaction record and the document filename. If the receipt sits directly beside the entry in your app, check that it opens and is readable.
Keep cash movements and personal withdrawals clear too. They can explain why the money you hold differs from your business profit, without turning those movements into extra sales or expenses.
- Use clear folders for the tax year or accounting period.
- Make a backup separate from the only working copy.
- Limit access to records containing customer or personal information.
- Check exports before you depend on them.
- Retain the documents, not just a screenshot of an annual total.
Do I send all this to HMRC?
You normally use the records to prepare your figures rather than sending every receipt with your tax return. You must still keep the underlying evidence in case HMRC asks to check it.
A Self Assessment report is a useful summary, but it does not replace the documents and calculations behind it. Keep the report version you used and a note of any later corrections.
How long do I keep the records?
HMRC says business records must generally be kept for at least five years after the relevant 31 January submission deadline. There are specific rules for very late returns. Check the official guidance before disposing of anything, particularly if a check or enquiry is ongoing.
If a record is lost, try to replace it from the supplier or payment provider. Where records cannot be replaced, follow HMRC’s guidance on estimated or provisional figures rather than inventing an amount.
MTD adds digital record requirements
If Making Tax Digital applies, check its digital record and compatible software requirements as well as keeping the supporting documents. A collection of receipt photos is not automatically the complete digital record you need.
TaxSnapper helps you record income and expenses, store receipts and export reports. It does not send MTD updates directly to HMRC. Check the workflow with your compatible software provider or accountant.
Start with one complete week
Take one week’s customer payments and purchases and check that you can trace every entry to evidence. That small check quickly shows whether your system needs clearer references, a better receipt habit or a way to handle cash.
Our income and expense guide explains the entries, and working out profit explains what the totals mean.
Useful HMRC guidance
Your records, ready for the next step.
Keep the day-to-day entries in order so there is less to sort out when reporting comes round. Explore the reports and check the examples before choosing what you need.