"How long do I have to keep this receipt?" is one of the most common questions UK business owners ask — usually while staring at a drawer that won't close. The answer depends on what kind of business you run, but the rules are clearer than most people expect. Here's the plain-English version.
The short answer
| Business type | Keep records for |
|---|---|
| VAT-registered business | 6 years |
| Limited company | 6 years from the end of the financial year |
| Sole trader / self-employed | at least 5 years after the 31 January Self Assessment deadline |
| Landlord (rental income) | at least 5 years after the 31 January deadline |
If a transaction spans more than one accounting period, or an asset is used over several years, you may need to keep the related records for longer. And if you file a return late, HMRC can require you to keep the records longer still.
Why HMRC cares about your receipts
The records aren't for HMRC's filing cabinet — they're your evidence. If HMRC opens a compliance check, the burden is on you to show that the figures on your return are right. A return without supporting receipts is a figure you can't defend. Good records also protect you: they're how you make sure you've claimed every expense and reclaimed every penny of VAT you're entitled to.
What counts as a "record"?
More than just till receipts. HMRC expects you to keep evidence of everything that feeds your return, including:
- Sales and income (invoices issued, takings, bank statements)
- Purchases and expenses (receipts, supplier invoices, mileage logs)
- VAT records, if registered (VAT invoices in and out, your VAT account)
- PAYE records, if you employ people
- Records of personal income relevant to the business
Do you really need the paper?
For most businesses, no — a clear digital copy is acceptable. HMRC allows you to keep records in digital form as long as the copy is legible and contains all the information shown on the original. That means a sharp photo or scan of a receipt, stored safely, generally does the job, and you can recycle the faded paper.
A few sensible exceptions: hold on to original documents that show tax has been deducted that you can't get again (for example certain certificates), and anything you'd struggle to reproduce. But the era of keeping a carrier bag of curling thermal receipts is, mercifully, over — thermal ink fades to blank within a year or two anyway, which is exactly why capturing it digitally on the day matters.
What happens if your records are poor
HMRC can charge a penalty for failing to keep adequate records — and separately, if poor records lead to an incorrect return, the penalty for the error is higher when records were careless. Beyond the fines, weak records simply cost you money: missed expenses, unreclaimed VAT, and hours of reconstruction at year-end.
The practical takeaway
The businesses that never worry about this question are the ones that capture each receipt digitally the moment it arrives — supplier, amount and date recorded, the image filed automatically. Six years of records then lives in a searchable archive, not a drawer, and an HMRC check becomes a five-minute export rather than a weekend of digging.
This article is general guidance, not tax or legal advice — retention periods can vary with your circumstances, so check the current rules on gov.uk or with your accountant. ReceiptTidy captures receipts and invoices digitally the moment they arrive and keeps them in a searchable, audit-ready archive — so the paper can go in the recycling and your records stay HMRC-ready.