How to keep receipts for HMRC: a practical system that actually works

Receipts are the unglamorous evidence behind every expense you claim. They are also the thing most people lose, forget or leave in a pocket until the ink fades. If HMRC asks you to support a claim and you cannot, the claim can be disallowed, which increases your profit and your tax. Fortunately, a good system is simple, free to run and takes seconds per receipt.

What HMRC actually requires

HMRC requires you to keep records that support the figures on your tax return. For expenses, that means evidence of what you bought, from whom, when and how much. A valid record normally shows:

• The date
• The supplier's name
• The amount, and VAT where relevant
• What was purchased

You do not send receipts to HMRC with your return. You simply must be able to produce them if asked, normally during a compliance check.

Are digital receipts acceptable?

Yes. HMRC accepts scanned or photographed copies provided they are clear, complete and unaltered. You do not need to keep the paper original once you have a good digital copy, unless the law requires the original for a specific purpose. Digital storage is better in almost every way: it is searchable, backed up and easy to share with your accountant or bookkeeper.

How long to keep them

Who	Minimum period
Sole trader	5 years after the 31 January deadline for that tax year
Limited company	6 years from the end of the accounting period
VAT records	6 years

For example, a receipt from the 2025/26 tax year (filed by 31 January 2027) should be kept until at least 31 January 2032. Our guide to business records for HMRC has the full table.

The system: capture, attach, archive

The most reliable method has three steps.

1. Capture the moment you spend. Take a photo of the receipt immediately, using your accounting software's app or a dedicated capture app. Don't plan to "do them all on Friday". Paper receipts fade, get crumpled and disappear.

2. Attach to the bank transaction. In modern accounting software, every receipt is linked to the transaction it supports. That link is what makes records defensible: the evidence sits next to the payment.

3. Archive automatically. Cloud software stores attachments securely and retains them for as long as your account is active. Check your provider's retention policy, and export a periodic archive if you ever plan to close the account.

Emailed receipts and online purchases

Many suppliers now email invoices. Forward them to a dedicated capture address provided by your software or capture app, and they will be read, coded and matched automatically. For subscriptions, set the supplier to send invoices to that address permanently. Our receipt and expense capture service sets this up and chases anything missing each month.

What if you have no receipt?

Sometimes a receipt is genuinely unavailable: a parking meter, a cash tip, a lost ticket. In that case:

• Record the expense anyway, with a note explaining what it was
• Use the bank or card statement as supporting evidence
• Where possible, request a duplicate receipt or a statement from the supplier
• Keep a written note with the date, amount and purpose

HMRC understands that small items are sometimes undocumented, but a pattern of unsupported claims invites questions.

Receipts for common categories

Mileage. There is no receipt. Keep a log showing the date, journey, purpose and miles. Our mileage calculator works out the claim.

Working from home. Keep utility bills if you claim a proportion of costs, or a record of hours worked if you use the simplified flat rate.

Meals and subsistence. Keep receipts and note the business reason. Everyday meals are not allowable, but meals while travelling for work in some circumstances are.

Equipment. Keep invoices for the whole life of the asset plus the retention period, because capital allowances depend on them.

Overseas purchases. Keep invoices and note the exchange rate used.

Tools that make it easy

• Accounting software apps. Xero, QuickBooks and FreeAgent all have receipt capture built in. See our guide to choosing accounting software.
• Dedicated capture apps. Apps such as Dext read receipts automatically and push data into your software.
• A scanner or phone. A free scanning app is enough if you simply save PDFs into a clear folder structure.
• A bookkeeper. Having someone else chase missing receipts each month keeps everything complete. See monthly bookkeeping.

A folder structure if you do it manually

If you cannot use software, use a simple, consistent structure and stick to it:

• One folder per tax year
• Inside, one folder per month
• Name each file with the date, supplier and amount, for example 2026-11-04 Staples 38.40

Back it up to a second location, such as a cloud drive. Photos left on a phone are not a system.

Mistakes to avoid

• Keeping receipts only on thermal paper, which fades
• Storing them in an email inbox you may close
• Photographing them but never attaching to transactions
• Throwing records away too early
• Keeping personal and business receipts together

A five-minute weekly habit

Once a week, open your software, look at the list of bank transactions with no attachment and clear it. It takes five minutes when done weekly and an afternoon when done annually. Our monthly checklist includes this step.

Why it matters for Making Tax Digital

Under Making Tax Digital, you keep digital records and report more often. Receipts attached as you go make quarterly updates quicker and reduce the risk of reconstructing expenses from memory. See our Making Tax Digital guide.

A worked example of an HMRC query

Imagine HMRC opens a compliance check on a sole trader's return and asks for evidence of her £4,200 travel claim. With a good system, she logs in to her accounting software, filters the travel category for the year and exports the list. Each line has a bank transaction with a receipt attached, plus a mileage log for the car journeys. She sends the file in under an hour and the enquiry closes. Without a system, she would have to search emails, phone gallery and drawers, probably fail to find several items, and risk the claim being reduced. The difference between those outcomes is simply whether receipts were captured when she spent the money. Five seconds with a phone at the till is cheaper than any amount of searching later.

Making it a habit

The easiest way to keep the habit is to attach it to something you already do. Photograph the receipt before you leave the shop, as part of paying. Set your email to forward supplier invoices automatically. And once a week, spend five minutes clearing the list of bank transactions without an attachment. After a month it takes no thought, and your end-of-year work shrinks to almost nothing.

Frequently asked questions

Do I need to keep receipts if I have bank statements?

Yes. A statement shows that money left your account, not what it was for. You need the receipt or invoice as evidence of the business purpose.

Is a photo of a receipt legal?

Yes, if it is clear and complete and shows the date, supplier, amount and what was bought.

How long should I keep receipts?

Sole traders for at least 5 years after the 31 January deadline, and companies for at least 6 years from the end of the accounting period.

What if my receipt is faded?

Photograph it immediately when you receive it. If it has already faded, supplement it with a bank statement and a written note, and request a duplicate.

Can someone else manage my receipts?

Yes. We capture, code and match receipts every month. Get an instant quote.