What records do self-employed people need to keep?
If you are a sole trader or partner in a business partnership, you need records of your business income and expenses so that you can complete your Self Assessment tax return accurately.
You also need to retain enough supporting information to show how the figures in your tax return were calculated if HMRC asks to check them.
Keep records of all business income, all business expenses and supporting evidence such as receipts, invoices, bank statements and sales records. Additional records may be required depending on VAT, PAYE, your accounting method and Making Tax Digital.
What income records should you keep?
HMRC requires records of all sales and business income.
Depending on how your business operates, useful evidence can include:
Sales invoices
Keep copies of invoices issued to customers or clients, including the amount and date.
Sales receipts
Keep till rolls, payment records or other evidence of sales where invoices are not normally issued.
Bank receipts
Business bank deposits and electronic payments can help provide evidence of money received.
Other business income
Record other taxable business receipts rather than limiting records to your main customer invoices.
What expense records should you keep?
HMRC requires records of all business expenses.
The records should allow you to identify what was purchased, how much it cost and why it relates to the business.
Examples include:
- Stock and materials.
- Tools and equipment.
- Business travel.
- Vehicle costs.
- Phone and broadband.
- Home-working costs.
- Insurance.
- Professional fees.
- Advertising and marketing.
- Other allowable operating expenses.
For the tax rules on which costs may be deductible, see our Self-Employed Allowable Expenses Guide .
Do you need receipts for self-employed expenses?
You should keep proof of the costs recorded in your business accounts.
HMRC gives examples of supporting evidence including:
- Receipts for goods and stock.
- Purchase invoices.
- Bank statements.
- Sales invoices.
- Till rolls.
- Bank slips.
- Other documentation that supports the transaction.
You normally keep the evidence rather than sending it with your tax return
Your Self Assessment return contains the figures. The underlying records and evidence are retained so they can be produced if HMRC later asks to check how those figures were calculated.
Do you need to keep bank statements?
Bank statements can form an important part of your supporting business records because they help evidence payments received and costs paid.
A separate business bank account can make bookkeeping easier, but the tax question is whether your records allow business transactions to be identified accurately.
A payment showing on the bank statement can prove money left the account, but an invoice or receipt may still be needed to establish what was purchased and why it was a business cost.
What about cash income and cash expenses?
Cash transactions still need to be recorded.
Receiving cash rather than a card or bank transfer does not remove the obligation to record the business income.
Similarly, a cash expense should be recorded and supported by suitable evidence wherever possible.
Does your accounting method affect your records?
Yes. The point at which income and expenses are recorded depends on whether you use cash-basis or traditional accounting.
| Method | When transactions are generally recorded |
|---|---|
| Cash basis | Income is generally recorded when money is received and expenses when they are actually paid. |
| Traditional accounting | Income and expenses are generally recorded based on when they are invoiced, earned or incurred rather than only when cash changes hands. |
Cash basis has been the default accounting method for most qualifying self-employed businesses since the 2024/25 tax year, although businesses can opt out or may need to use another method in particular circumstances.
What extra records are needed with traditional accounting?
HMRC says traditional accounting requires additional year-end information beyond the basic income and expense records.
This can include:
- Money customers owe you but have not yet paid.
- Bills or other amounts you owe but have not yet paid.
- Stock and work in progress at the end of the accounting period.
- Year-end bank balances.
- Money introduced into the business.
- Money taken out of the business for your own use.
How long must self-employed records be kept?
At least 5 years after the 31 January filing deadline
For a normal Self Assessment return, HMRC says business records must be retained for at least five years after the 31 January submission deadline for the relevant tax year.
Example for the 2026/27 tax year
The 2026/27 tax year ends on 5 April 2027. The normal online Self Assessment filing deadline is 31 January 2028.
Applying HMRC's standard five-year business-record rule means records for that return would normally need to be retained until at least the end of January 2033.
Different rules can apply to very late tax returns, records relating to capital assets or situations where an HMRC enquiry remains open. Do not destroy records simply because the normal five-year date has passed if they are still relevant to an unresolved tax matter.
What if your records are lost, stolen or destroyed?
HMRC says you should replace the records where possible.
If they cannot be replaced, you must do your best to recreate the figures and tell HMRC on the tax return if you have used estimated or provisional figures.
Estimated figure
Your best reasonable estimate where the actual figure cannot be established.
Provisional figure
A temporary figure used while you wait for the actual information, which will later need to be updated.
Do self-employed records have to be digital?
Not every self-employed business is automatically required to keep all Income Tax records digitally simply because it submits a Self Assessment return.
However, the position changes where Making Tax Digital for Income Tax applies.
Qualifying businesses subject to MTD must use compatible software to create, store and correct digital records of relevant self-employment and property income and expenses.
Who needs digital records under Making Tax Digital in 2026/27?
From 6 April 2026, Making Tax Digital for Income Tax applies to qualifying individuals registered for Self Assessment who receive income from self-employment, property or both and whose qualifying income is more than £50,000.
MTD is now live for the first mandatory group
Those within the rules need compatible software for their digital records and quarterly updates, as well as the required end-of-year tax reporting.
HMRC currently plans to extend MTD for Income Tax to qualifying income over £30,000 from April 2027 and over £20,000 from April 2028.
Our separate Making Tax Digital guide covers the wider MTD requirements.
How should you organise your self-employed records?
HMRC does not require every small business to use exactly the same bookkeeping system. The important point is that the records are accurate and business transactions can be identified.
Record transactions regularly
Avoid leaving a year's worth of income and expenses to be reconstructed immediately before the tax-return deadline.
Store supporting evidence
Match invoices, receipts and other documents to the corresponding bookkeeping entries.
Separate business and private costs
Where an expense is mixed-use, retain the calculation used to identify the allowable business proportion.
Back up digital records
Make sure important bookkeeping data and electronic evidence are stored securely and can still be accessed throughout the required retention period.
Reviewed & Updated
18 August 2026
2026/27
GO TAX REFUNDS
HM Revenue & Customs / GOV.UK
Record-keeping requirements can depend on your accounting method, VAT or PAYE obligations, partnership status and whether Making Tax Digital for Income Tax applies. This guide focuses on the core Self Assessment requirements for self-employed individuals.
Self-Employed Record Keeping FAQs
How long should self-employed people keep records?
HMRC's standard rule is at least five years after the 31 January submission deadline for the relevant tax year. Records may need to be retained longer in some situations.
What records does a sole trader need to keep?
You need records of all business income and expenses, together with suitable supporting evidence. Other records may be required for VAT, PAYE, traditional accounting or Making Tax Digital.
Do I need to send my receipts to HMRC?
Not normally when you submit your Self Assessment return. You should keep the evidence so it can be provided if HMRC asks to check your figures.
Do I need receipts for every expense?
You need accurate records and suitable evidence supporting your business costs. Receipts, invoices, bank statements and other documents can all form part of that evidence.
Do cash payments still need to be recorded?
Yes. Cash sales, takings and business expenses form part of your business records just like payments made by card or bank transfer.
What happens if I lose my receipts or records?
Try to replace or reconstruct them. If that is impossible, HMRC says you should make the best reasonable calculation you can and identify estimated or provisional figures on the return where required.
Do I have to keep digital records in 2026/27?
If you are within Making Tax Digital for Income Tax, you need compatible software and digital records meeting the MTD requirements. From 6 April 2026, the first mandatory group includes qualifying individuals with qualifying income above £50,000.
HMRC & GOV.UK Sources
This guide is reviewed against current HMRC guidance on Self Assessment business records and Making Tax Digital.
Need help organising your self-employed tax records?
Go Tax Refunds can help review your income, expenses and supporting records so your self-employed tax information is organised for Self Assessment.
Get Tax Support