Records You Must Keep If You’re Self-Employed

This guidance is for self-employed individuals and sole traders who need to understand what business records must be kept to meet HMRC requirements.

This page explains the types of records you must keep when self-employed, how long they should be retained, and why proper record-keeping is essential for accurate tax reporting.

HMRC expects self-employed taxpayers to keep clear and complete records. Poor or missing records can lead to incorrect tax returns, difficulties during an HMRC enquiry, and potential penalties.

What records must be kept when self-employed

If you are self-employed, you are required to keep records that fully support the figures included in your Self-Assessment tax return. These records should clearly show your business income and expenses.

Income records

You must keep records of all income received by your business, including:

• Sales invoices and receipts
• Cash takings records
• Bank statements showing business income

Expense records

Records should be kept for all allowable business expenses, such as:

• Receipts for purchases and running costs
• Travel and mileage records
• Use of home for business calculations
• Professional fees and subscriptions

Expenses must be supported by evidence and be wholly and exclusively for business purposes.

Asset records

If you buy or sell business assets, you should retain records relating to:

• Equipment, tools, or machinery
• Vehicles used for business purposes
• Dates of purchase and disposal
• Amounts paid or received

These records may be required to support capital allowance or disposal calculations.

How long must self-employed records be kept?

HMRC generally requires self-employed individuals to keep records for at least 5 years after the 31 January submission deadline for the relevant tax year.

For example, records for the 2023–24 tax year should normally be kept until at least 31 January 2030.

Risks and consequences of poor record-keeping

Failure to keep adequate records can lead to:

• Incorrect Self-Assessment returns
• HMRC enquiries or compliance checks
• Penalties or interest if errors are found
• Difficulty defending income or expense figures

HMRC may estimate your tax position if records are missing or unreliable, which often results in higher assessments.

In practice: what we commonly see

In practice, we often see HMRC challenge expense claims where receipts are incomplete or inconsistent. Digital records are accepted, but they must still be clear, accurate, and retrievable. Problems frequently arise where personal and business finances are mixed or where records are reconstructed long after the event.

Local support for self-employed taxpayers

If you’re self-employed and want confidence that your records meet HMRC standards, experienced accountants in Farringdon support clients across nearby areas such as Clerkenwell and Finsbury. At CIGMA Accounting, we review record-keeping practices, identify gaps or weaknesses, and help you address issues early — before they lead to HMRC queries or penalties.

Check whether your records meet HMRC requirements

If you are unsure whether your business records are sufficient, a short review can help confirm compliance, reduce the risk of HMRC enquiries, and ensure your tax returns are supported by proper evidence.