HMRC can check a return long after it is filed, so you need to keep the records that support it. The time limits depend on how your business is set up.
The minimum periods
- Sole traders and partnerships: at least five years after the 31 January submission deadline for the tax year.
- Limited companies: at least six years from the end of the financial year the records relate to.
- VAT-registered businesses: VAT records for at least six years.
- Employers: payroll records for at least three years after the end of the tax year.
Keep them longer if a return is late, under enquiry, or if an asset you own will be sold in future.
What counts as a record
- Sales invoices, receipts and till records.
- Purchase invoices and receipts for expenses.
- Bank statements for every business account.
- Loan agreements, leases and hire-purchase paperwork.
- Payroll, pension and dividend paperwork for companies.
- Mileage logs if you claim vehicle costs.
Paper or digital?
Digital records are fine, as long as they are clear, complete and readable. For Making Tax Digital, many businesses must keep records in compatible software anyway. A clear photo of a receipt, stored against the transaction in your bookkeeping app, is enough.
A simple routine
- Use one business bank account and connect it to your software.
- Match receipts to transactions weekly, not annually.
- Back up your files, and keep a list of where older years are stored.
How we help
We set up cloud bookkeeping with bank feeds and receipt capture, and review your records each month so year-end accounts become a formality.
This article is general guidance based on the rules for the 2026/27 tax year. It isn’t personal advice — talk to us before you act on it.
