How long do you need to keep receipts in the UK?

Every self-employed person eventually looks at a drawer of old receipts and wonders whether they can throw them away. The answer depends on what kind of business you run and which taxes the records support. This guide sets out HMRC's minimum periods, shows the actual dates for recent tax years, and explains what to do if something has already gone missing.

Sole traders and landlords: 5 years after the 31 January deadline

If you file Self Assessment as a sole trader, a partner or a landlord, HMRC's guidance on business records is clear: you must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year.

The clock starts at the online filing deadline, not at the end of the tax year and not on the day you happen to file. That makes the real period closer to six years and ten months from the start of the tax year.

HMRC's own example matches the first row: if you sent your 2022 to 2023 return by 31 January 2024, you must keep your records until at least the end of January 2029.

Very late returns

If you send a return more than 4 years after the deadline, the same guidance says you need to keep the records for 15 months after you send the return.

If you are not self-employed

If you complete a Self Assessment return only because of other income (for example, savings interest or a pension) and you are not in business, HMRC's personal records guidance gives a shorter period: generally 22 months after the end of the tax year the return is for. If you send the return late, the period runs to 15 months after you send it.

Limited companies: 6 years from the end of the financial year

Company records follow a different rule. GOV.UK's guidance on running a limited company says you must keep records for 6 years from the end of the last company financial year they relate to, or longer in some cases: for example if they show a transaction covering more than one accounting period, if the company bought something it expects to last more than 6 years, or if the Company Tax Return was sent late.

VAT-registered businesses: at least 6 years

If you are VAT registered, HMRC's record keeping for VAT notice (VAT Notice 700/21) says that, generally, you must keep all your business records for VAT purposes for at least 6 years. The same notice points out that records used for other taxes may need to be kept for longer. A VAT-registered sole trader therefore keeps receipts for whichever is the longer of the VAT period and the Self Assessment period.

Which records count?

HMRC's list of proof to keep includes all receipts for goods and stock, bank statements, chequebook stubs, sales invoices, till rolls and bank slips. In practice you should also keep:

• mileage logs if you claim vehicle costs using flat rates
• payment and deduction statements if you work under the Construction Industry Scheme
• letting agent statements and invoices for repairs if you rent out property
• any records you used to work out a split between business and private use, such as a phone bill

Can I keep digital copies instead of paper?

For most purposes, yes. HMRC's VAT record-keeping notice gives the example of software that scans invoices into the business's records: if the image is retained and contains all the details required for VAT, the business does not need to keep the original invoice unless it is needed for another purpose. Making Tax Digital for Income Tax guidance also refers to keeping original records "or copies of them".

The catch is that a copy is only useful if it is complete and readable. A photo that cuts off the VAT number or the date does not prove much. Some documents must be kept in their original form; the VAT notice gives the import VAT certificate (C79) as an example.

What if my receipts are lost or destroyed?

It happens: floods, house moves and faded thermal paper all claim records. HMRC's guidance says that if you cannot replace your records, you must do your best to provide figures, and tell HMRC when you file if you are using:

• estimated figures: your best guess when you cannot provide the actual figures
• provisional figures: temporary estimates while you wait for the actual figures, which you then send when you have them

Bank and card statements, supplier account histories and email confirmations are often enough to rebuild a missing expense. That is one reason a regular bank-to-receipts check is worth the time.

When HMRC can look back

The keeping periods above are minimums. HMRC's ability to go back further depends on why something was wrong. HMRC's Compliance Handbook on assessing time limits says the normal limit is 4 years from the end of the relevant tax period, extended to 6 years where the loss of tax was careless and 20 years where it was deliberate (longer limits can also apply to offshore matters). If you know an older year may be questioned, keep its records for longer.

Making it painless

The hard part of record keeping is rarely knowing the rules. It is finding a three-year-old receipt when someone asks for it. A few habits help:

• Photograph receipts on the day, before the ink fades. Receipts Keeper reads the supplier, date, total and VAT and keeps the image with the record, so on the Business plan you can search and filter for it years later.
• Keep one folder or app per tax year, and do not delete a year until it is past the dates in the table above.
• Keep a second copy somewhere else. On the Business plan Receipts Keeper can copy receipts to your own Google Drive.
• Export a CSV at year end and keep it with your tax return.

Sources

• Business records if you're self-employed: how long to keep your records, GOV.UK
• Keeping your pay and tax records: how long to keep your records, GOV.UK
• Running a limited company: company and accounting records, GOV.UK
• Record keeping for VAT (VAT Notice 700/21), GOV.UK
• Compliance Handbook CH53100: assessing time limits, HMRC internal manual

See also: Making Tax Digital for Income Tax: what sole traders and landlords need to do.

This article is general information, not tax advice. Your circumstances may mean records need to be kept for longer, so check with HMRC or an accountant.