The short version: the same records you should already be keeping — just stored digitally in approved software.
Income Records
- Invoices you sent: Date, amount, client name, what it was for
- Payment receipts: PayPal/Stripe receipts, bank confirmations
- Bank statements: Showing deposits matching your invoices
Expense Records
- Receipts: Till receipts, supplier invoices, or bank transactions
- Mileage log: If you claim car expenses — date, miles, purpose
- Utility bills: If you claim home office costs
- Professional fees: Accountant invoices, membership fees, training
How Long Do You Keep Them?
HMRC can ask for records up to 6 years after the year they relate to. Keep everything for at least 6 years to be safe.
Best Way to Organise Digitally
- Use your MTD software to photograph receipts on your phone immediately
- Set up a business bank account so personal and business money don't mix
- Connect your bank feed to your software — it imports transactions automatically