Keeping Suitable Business Records

If you are self-employed as a sole trader or as a partner in a business partnership, then you must keep suitable business records as well as separate personal records of your income.

For tax purposes, the business records must be held for at least 5 years from the 31 January submission deadline for the relevant tax year. For example, for the 2021-22 tax year, when online filing was due by 31 January 2023, you must keep your records until at least the end of January 2028. In certain situations, such as when a return is submitted late, the records must be held for longer.

If you are self-employed, you should also keep a record of:

  • all sales and income
  • all business expenses
  • VAT records if you’re registered for VAT
  • PAYE records if you employ people
  • records about your personal income
  • grant details if you claimed through the Self-Employment Income Support Scheme because of coronavirus.

You don’t need to keep the vast majority of your records in their original form. If you prefer, you can keep a copy of most of them in an alternative format as long as they can be recovered in a readable and uncorrupted format. For example, a scanned PDF document.

If your records are no longer available for any reason, you must try and recreate them letting HMRC know if the figures are estimated or provisional. There are penalties for failing to keep proper records or for keeping inaccurate records.

Source: HM Revenue & Customs | 17-07-2023

Keeping Accurate and Complete Business Records

Keeping accurate and complete business records is essential for self-employed individuals and business partners, not only to meet HMRC requirements but also to avoid penalties and unnecessary stress. At CIGMA Accounting, we support retailers, construction companies, healthcare professionals, and recruitment companies with practical record-keeping systems, digital storage solutions, and compliance reviews, ensuring records are retained correctly and are HMRC-ready if queried.

Local Advice and Ongoing Support

Our experienced accountants work with clients through our London offices in Hammersmith and Kingston upon Thames, as well as nearby areas including King Street (W6 High Street), Brook Green, Hampton Wick, and Berrylands, providing clear guidance on record retention periods, digital record-keeping, and responding to HMRC enquiries.

For official HMRC guidance on keeping business records, visit GOV.UK.

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CIGMA Accounting
CIGMA Accounting Ltd is a forward-thinking accounting and tax firm based in London, dedicated to delivering high-quality compliance, tax planning, and business advisory services to entrepreneurs, landlords, and growing SMEs. With offices in Wimbledon and Farringdon, we combine local expertise with a tech-driven approach to simplify accounting. Our services include corporation tax filing, VAT compliance, HMRC investigation support, R&D tax credit claims, capital allowances optimisation, and bookkeeping automation. What sets CIGMA apart is our ability to blend traditional accounting rigour with AI-powered systems that reduce errors, save time, and provide real-time financial insights. Our team ensures that every client - from startups to high-net-worth individuals - receives a bespoke solution aligned with their growth goals. Whether you need strategic tax planning, help with HMRC disclosures, or a full outsourced finance function, CIGMA Accounting delivers clarity, compliance, and confidence.
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