How Long Do You Have to Keep Records for HMRC?

At Towerstone Accountants we provide specialist personal tax services, for self employed, and individuals across the UK. This article has been written to explain how long do you have to keep records for hmrc, in clear practical terms, so you understand how HMRC processes, tax rules, and your obligations apply in real situations. Our aim is to help you stay compliant, avoid costly mistakes, and deal with HMRC confidently.

This is one of those questions that often gets asked far later than it should. Usually it comes up when someone is clearing out paperwork, moving house, closing a business, or receiving a letter from HMRC asking for information from years ago. At that point the worry is obvious. Should those records still exist and what happens if they do not.

From experience, record keeping is one of the most underestimated parts of tax compliance. People focus heavily on filing deadlines and tax payments but forget that HMRC expects you to be able to support the figures you submit. Keeping records is not optional and the time periods involved are longer than many people realise.

In this article I want to explain clearly how long you are required to keep records for HMRC in the UK, how the rules differ depending on whether you are employed, self employed, or running a company, and what I advise clients to do in practice so record keeping does not become a source of stress later on.

Why HMRC cares about record keeping

HMRC does not ask you to keep records for the sake of it. Records are how HMRC verifies that the tax you reported was calculated correctly.

If HMRC ever checks a return, opens an enquiry, or reviews a claim, they will usually ask for evidence. That evidence comes from your records.

From experience, people often assume that once a tax return is accepted, the year is closed forever. That is not how the system works. HMRC has the right to ask questions after submission and your ability to answer them depends entirely on whether you kept the paperwork.

Good records protect you just as much as they protect HMRC.

General rule for keeping tax records

As a starting point, HMRC expects you to keep records for at least five years after the 31 January submission deadline for the relevant tax year.

That is the general rule for Self Assessment and it catches many people out because it is longer than five years from the end of the tax year itself.

For example, records for the 2022 to 2023 tax year should usually be kept until at least 31 January 2029.

From experience, people often calculate this incorrectly and destroy records too early. The deadline is linked to the filing deadline, not just the tax year.

If you are self employed or a sole trader

If you are self employed, you must keep records of your business income and expenses.

This includes things such as:.

• Sales invoices and income records

• Expense receipts and bills

• Bank statements

• Mileage logs

• Cash records

• VAT records if registered

HMRC requires self employed individuals to keep these records for at least five years after the 31 January submission deadline for the relevant tax year.

If you file your return late, the period may effectively be longer because the submission deadline still applies.

From experience, this is where problems often arise. Someone files late, assumes the clock runs from the date they filed, and disposes of records too early.

If you are a landlord

If you receive rental income, you are required to keep records relating to that income.

This includes:.

• Rental agreements

• Rent received

• Letting agent statements

• Repair and maintenance invoices

• Mortgage interest statements

• Insurance documents

The record keeping period is the same as for self employment. You should keep records for at least five years after the 31 January submission deadline for the tax year.

From experience, property records often need to be kept even longer because they can affect Capital Gains Tax calculations many years later. Purchase documents, improvement costs, and sale paperwork should usually be kept until well after a property is sold.

If you are employed

If you are employed and taxed through PAYE, your record keeping obligations are lighter but they still exist.

You should keep records such as:.

• P60s

• P45s

• Payslips

• Records of benefits in kind

• Expense claims

HMRC generally advises employees to keep these records for at least 22 months after the end of the tax year.

However, from experience, I often suggest keeping them longer. If you have multiple employments, benefits, or complex tax affairs, having access to older records can be extremely helpful if questions arise.

If you complete a Self Assessment tax return

If you are required to complete a Self Assessment tax return for any reason, the five year rule applies regardless of whether the income comes from self employment, rental income, or other sources.

That means you should keep all records supporting the return for at least five years after the 31 January submission deadline.

This includes:.

• Income records

• Expense evidence

• Investment statements

• Pension contribution records

• Gift Aid records

From experience, people often forget that even one reason for being in Self Assessment brings the longer record keeping requirement with it.

If you run a limited company

Limited companies have different and often longer record keeping requirements.

Company records must usually be kept for at least six years from the end of the accounting period.

This includes:.

• Accounting records

• Bank statements

• Invoices

• Receipts

• Payroll records

• VAT records

• Company accounts and returns

Company directors also have personal responsibilities to keep records relating to their own tax affairs such as dividends and benefits.

From experience, company records are the ones HMRC is most likely to ask for during an enquiry. Keeping them organised and accessible makes a huge difference.

VAT record keeping rules

If you are VAT registered, HMRC requires you to keep VAT records for at least six years.

This includes:.

• VAT invoices

• VAT account records

• VAT returns

• Digital records under Making Tax Digital

The six year rule applies even if you deregister from VAT.

From experience, VAT records are one of the most common areas HMRC reviews. Poor VAT records often lead to assessments and penalties.

What happens if HMRC opens an enquiry

If HMRC opens an enquiry or investigation, you may need to keep records for longer than the normal minimum periods.

HMRC can ask for records going back several years depending on the nature of the enquiry and the behaviour involved.

From experience, once HMRC is involved, destroying records even if the minimum period has passed can look unhelpful. If an enquiry is ongoing, records should always be retained until it is fully resolved.

Digital records versus paper records

HMRC does not require records to be kept on paper. Digital records are perfectly acceptable and increasingly preferred.

This includes:.

• Scanned receipts

• Digital invoices

• Accounting software records

• Bank feeds

What matters is that the records are accurate, readable, and accessible if HMRC asks for them.

From experience, digital record keeping is far easier to manage long term. Paper fades, gets lost, or is thrown away accidentally. Digital storage reduces that risk significantly.

Common mistakes I see with record keeping

There are a few patterns I see repeatedly.

• Records destroyed too early

• Only summaries kept rather than source documents

• Missing receipts for expenses

• Mixing personal and business records

• Assuming HMRC already has the information

These mistakes rarely cause problems immediately. They usually surface years later when it is much harder to fix them.

What I advise clients to do in practice

In practice, I advise clients to think in terms of safety rather than minimums.

If the rule says five years, aim for six or seven. If the rule says six years, consider longer where assets or property are involved.

Storage is cheap. Stress is expensive.

I also suggest keeping records grouped by tax year and clearly labelled. When HMRC asks for something, being able to provide it quickly and confidently changes the tone of the conversation completely.

Key points to takeaway

So how long do you have to keep records for HMRC. In most cases, it is at least five years after the 31 January submission deadline or six years for companies and VAT.

From experience, the biggest problems come not from missing deadlines but from missing paperwork years later. HMRC can be reasonable about mistakes but they expect you to be able to show how figures were calculated.

Good record keeping is not about bureaucracy. It is about protection. If you keep clear records for long enough, you stay in control even when HMRC asks questions long after you thought a tax year was finished.

You may also find our guidance on how far back can hmrc investigate, and what are the chances of being investigated by hmrc, helpful when reviewing related HMRC questions. For a broader overview of dealing with HMRC, you can visit our hmrc hub.