How to Keep Records for Your UK Tax Return

Good record-keeping is not just a legal requirement — it makes filing your tax return faster, helps you claim all the expenses you are entitled to, and protects you if HMRC ever opens an enquiry. This guide explains exactly what records you need to keep, for how long, and the best ways to manage them.

Why Record-Keeping Matters

HMRC can open an enquiry into your tax return up to 12 months after filing (or longer if they suspect fraud or negligence). If you cannot produce adequate records to support your return, HMRC can estimate your income and expenses — often unfavourably. Penalties for inadequate record-keeping can reach £3,000 per tax year.

What Records Must You Keep?

For Self-Employed People

All sales and income, including cash and online payments; all business purchases and expenses with receipts or invoices; business bank statements; records of assets bought and sold for use in the business; records of any personal income drawn from the business; mileage logs for business vehicle use; petty cash records.

For Employees

P60 end-of-year certificate from each employer; P45 if you changed jobs; P11D if you received benefits in kind; receipts for expenses you are claiming relief on (professional subscriptions, equipment, travel).

For Landlords

Rental income received (dates and amounts); mortgage interest statements; letting agent invoices and statements; receipts for all maintenance and repair work; records of furniture and furnishings; records of time when the property was available to let vs personal use (for furnished holiday lettings).

How Long Must You Keep Records?

For employees and individuals with straightforward affairs: keep records for at least 22 months after the end of the tax year they relate to. For self-employed people: keep records for at least 5 years after the 31 January filing deadline. So for the 2024/25 tax year (return due 31 January 2026), keep records until at least 31 January 2031. If HMRC suspects fraud, they can go back 20 years.

Making Tax Digital from April 2026

From April 2026, self-employed people and landlords with income above £50,000 will be required to maintain digital records and submit quarterly updates to HMRC under MTD for Income Tax. This means records must be kept in MTD-compatible software such as Xero, QuickBooks, or FreeAgent — paper records will no longer suffice for quarterly reporting.

Practical Tips

Open a dedicated business bank account and use it exclusively for business transactions. Take photos of receipts as you receive them using your accounting app — paper receipts fade and get lost. Reconcile your bank statements monthly. Use cloud accounting software that connects directly to your bank account via Open Banking to import transactions automatically. File invoices and receipts in dated folders — digital folders by month work well.

What Happens If You Lose Records?

If you lose records, try to reconstruct them from bank statements, credit card statements, supplier records, and email correspondence. If you cannot fully reconstruct your records and HMRC opens an enquiry, you will need to rely on estimates — which HMRC may challenge. Being proactive about explaining any gaps is better than being caught out.