Not sure which business records to keep? Learn what to save, how long to keep it and how to organise your invoices, receipts and digital records. Read the full guide.
A bank statement shows that money moved. It may not tell you what you bought, which customer paid you or whether a payment included VAT. Those details matter when you prepare your accounts.
For most UK businesses, bookkeeping records include sales invoices, purchase receipts, bank statements and a clear record of cash transactions. You may also need VAT, payroll, stock and asset records, depending on how your business operates. HMRC sets out separate requirements for self-employed businesses and limited companies.
Keeping these documents organised makes it easier to explain your figures, spot missing payments and give your accountant the information they need.
What bookkeeping records should your business keep?
Sales and income records
Keep evidence of the money your business earns, including:
- Sales invoices and credit notes
- Till reports and daily cash takings
- Online sales reports and payment processor statements
- Customer refunds and the transactions they relate to
If a card processor or online platform deducts fees before paying you, save its settlement reports as well as the bank statement. You need to be able to explain the difference between the customer payment and the amount received.
For example, if a customer pays £100 and the processor keeps a £2 fee, the £98 bank deposit needs supporting detail showing both amounts. This example ignores VAT.
Purchase invoices and expense receipts
Keep the invoices and receipts behind your business costs. These could relate to stock, software, advertising, insurance, premises or professional fees.
Add a short note when the business purpose is not obvious. A receipt labelled “Amazon” gives your accountant much less information than an itemised invoice for printer cartridges.
For sole traders, where a cost covers both business and personal use, keep the calculation supporting the business share. Having a receipt does not automatically make the whole cost tax-deductible. The expense must meet the relevant tax rules. Read HMRC’s guidance on self-employed expenses.
Banking and cash records
Keep statements for accounts and credit cards used for the business, together with loan statements and a record of cash payments and receipts.
Each month, compare the statements with your bookkeeping entries. This process, called reconciliation, helps identify missing transactions, duplicates and payments entered for the wrong amount.
Record cash sales even when you use the cash to pay a supplier before banking it. Otherwise, both the sale and the expense can disappear from your records.
Limited companies must keep their finances separate from those of their owners and directors. Clearly identify money introduced by a director, personal payments and reimbursements. Read HMRC’s guidance on company accounting records.
VAT records if you are VAT registered
Keep sales and purchase invoices, credit notes, VAT calculations and records supporting adjustments. Your VAT account should explain the figures reported on your VAT returns.
A card payment slip or bank entry will not normally provide the information needed to support a VAT claim. Obtain a valid VAT invoice where required.
VAT-registered businesses must also keep specified records digitally unless they are exempt from Making Tax Digital for VAT. Read HMRC’s guidance on VAT records.
Payroll records if you employ staff
Keep records of employee pay and deductions, payroll reports sent to HMRC, payments made to HMRC, tax code notices, relevant expenses and benefits, and leave or sickness information. Read HMRC’s guidance on PAYE records.
Keep supporting hours and pay information too. A payslip alone may not explain how many hours someone worked or demonstrate that the minimum wage was paid correctly. Read the government’s minimum wage record-keeping guidance.
Stock and asset records
Limited companies must keep records of assets, debts and year-end stock, including the stocktakes behind the figures. Save purchase and disposal documents for equipment, vehicles and other business assets.
For self-employed businesses using traditional accounting, additional records include unpaid customer invoices, unpaid bills, stock and work in progress. Read HMRC’s guidance on business records.
Keeping an up-to-date list of unpaid invoices is useful whatever your accounting method. It shows which customers need chasing before a late payment becomes a cash-flow problem.
How long should UK businesses keep bookkeeping records?
There is no single retention period for every business document. These are the main rules:
| Record type | Usual minimum retention period |
|---|---|
| Sole trader and business partnership records for Self Assessment | At least five years after the 31 January filing deadline for the relevant tax year. HMRC guidance. |
| Limited company accounting records | Six years from the end of the last company financial year they relate to. HMRC guidance. |
| VAT records | At least six years. The OSS and former MOSS schemes have a ten-year requirement. HMRC guidance. |
| PAYE records | Three years from the end of the tax year they relate to. Other employment record rules may require longer. HMRC guidance. |
| Records proving minimum wage compliance | At least six years for current records, starting from the last day of the pay reference period following the one covered. Government guidance. |
Example: For a sole trader’s 2025/26 tax return with the standard 31 January 2027 filing deadline, keep the records until at least the end of January 2032.
Longer retention can apply. Company records may need keeping for longer where transactions span accounting periods, assets are expected to last more than six years, returns are filed late or HMRC has opened a compliance check.
Before deleting records, check all the rules that apply to them. A payroll document may support company accounts and minimum wage compliance as well as PAYE reporting.
Can you keep digital copies of receipts?
For many routine bookkeeping documents, yes. HMRC allows information to be preserved electronically where the system captures the information needed for a complete return and can reproduce it legibly.
Some documents must still be retained in their original form. Read HMRC’s guidance on preserving records.
When photographing or scanning a receipt:
- Capture the whole document, including the date, supplier, items and totals
- Check that the image is readable before filing it
- Save it with the relevant transaction or in a clearly labelled folder
- Keep a secure backup and restrict access to people who need it
A receipt stored only in your phone’s photo gallery can be difficult to find later. Move it into your record-keeping system while you still remember the purchase.
Does Making Tax Digital affect your records?
Yes, where your business falls within its scope. Saving receipt images is only one part of keeping suitable records.
For VAT, specified transaction records must be digital. If you use more than one piece of software to keep records and submit returns, the software must have the required digital links. Read HMRC’s guidance on digital VAT records.
Making Tax Digital for Income Tax began applying from 6 April 2026 to eligible sole traders and landlords whose qualifying income exceeded £50,000 in 2024/25, subject to exemptions.
Qualifying income generally means combined gross self-employment and property income before expenses. Check your position using HMRC’s guidance on who needs to use Making Tax Digital and qualifying income.
A practical monthly bookkeeping routine
Set aside a regular time to:
- Save new invoices, receipts and statements
- Record sales and expenses, including cash transactions
- Match bank and card transactions to the supporting documents
- Check unpaid customer invoices and supplier bills
- Resolve missing information with your accountant
- Back up your records and check that the files open
Agree one place for sharing documents with your accountant. Having invoices split between email, messaging apps and several folders makes omissions harder to spot.
Common bookkeeping questions
Are bank statements enough on their own?
Usually not. They show payments but often lack item descriptions, business purpose and VAT details. Keep the invoices, receipts and other evidence behind the transactions. HMRC lists several forms of supporting evidence in its business records guidance.
What should I do if a receipt is missing?
Ask the supplier for a duplicate and check your email or online account. Keep supporting payment evidence and explain the gap to your accountant, who can assess whether the evidence supports an expense or VAT claim.
If Self Assessment records cannot be replaced, do your best to reconstruct the figures and identify estimates or provisional figures when filing. Provisional figures must be updated when the actual figures become available. Read HMRC’s guidance on missing records.
Can I delete documents after filing my tax return?
No. Filing the return does not end the retention requirement. Keep the supporting records for the applicable period shown above and check whether any longer requirement applies.
Bookkeeping support from Number One Accounting
Number One Accounting provides bookkeeping, VAT, payroll and accounts support for UK businesses. If you need help organising your records or keeping your bookkeeping up to date, contact our team to discuss the support you need.