⚡ Related: 2026 update
Record-keeping requirements are about to get stricter for sole traders and landlords. Making Tax Digital for Income Tax mandates digital record-keeping (no more paper or shoebox receipts) from April 2026 for those over the £50k threshold.
One of the most common questions we hear: "What records do I actually need to keep?" The answer depends on your structure, but the core principles are the same.
How long must you keep records?
- Sole traders: 5 years after the 31 January filing deadline
- Limited companies: 6 years from the end of the accounting period
- VAT records: 6 years
- PAYE records: 3 years after the end of the tax year
What records do sole traders need?
- All sales invoices and income records
- Business expense receipts and invoices
- Bank statements
- Mileage logs
- Records of assets bought or sold
What records do limited companies need?
- All of the above, plus statutory books (register of directors, shareholders)
- Board minutes and dividend vouchers
- Corporation Tax records and computations
- Companies House correspondence
Can you keep digital records?
Yes — HMRC accepts digital records. Under MTD, digital records are required. Scanned receipts and photographed invoices are acceptable.
What happens if you can't produce records?
HMRC can impose a penalty of up to £3,000 for failing to keep adequate records. Book a free 20-min call to get your records in order.