What records to keep, and for how long
Sole traders must keep records for five years after the 31 January filing deadline. Companies must keep them for six years from the end of the accounting period. VAT records must be kept for six years. Under Making Tax Digital, records must also be kept digitally rather than on paper.
How long
| Who | Keep for |
|---|---|
| Sole trader or landlord | 5 years after the 31 January filing deadline |
| Limited company | 6 years from the end of the accounting period |
| VAT records | 6 years |
| Payroll records | 3 years from the end of the tax year |
| CIS records | 3 years from the end of the tax year |
| Records in an open enquiry | Until the enquiry is formally closed |
Five years after 31 January means a 2026/27 return filed in January 2028 needs records until January 2033, nearly seven years after some of the transactions.
What to keep
Sales invoices and records of all income, including cash takings.
Purchase invoices and receipts for everything you claim.
Bank and credit card statements for every account the business touches.
Mileage logs, if you claim travel.
For companies: statutory registers, board minutes, dividend vouchers and the accounting records themselves.
For landlords: tenancy agreements, completion statements and anything supporting a capital improvement, which you may need decades later when you sell.
Digital is now the default
VAT-registered businesses have had to keep digital records since Making Tax Digital for VAT. Sole traders and landlords above the thresholds join for Income Tax from April 2026 or April 2027.
Digital does not mean cloud accounting is compulsory. A spreadsheet counts, as long as it is the actual record and it connects to HMRC through bridging software rather than being retyped.
A photograph of a receipt is an acceptable record. HMRC does not require you to keep the paper once you have a legible digital copy, which is worth knowing before you fill another shoebox.
If records are lost
Tell HMRC, reconstruct what you can from bank statements and supplier copies, and make clear on the return that figures are estimated or provisional.
Penalties for failing to keep records can reach £3,000, though they are rarely charged where the loss was genuine and the reconstruction honest.
This guide is general information, current at 10 November 2026. Tax rules change and depend on your circumstances. Please take advice before acting on it.