What Records Do I Need to Keep for My Self Assessment

Introduction

Accurate record keeping is essential for completing your Self Assessment tax return correctly and avoiding HMRC penalties. Whether you are a sole trader, landlord, or freelancer, you must be able to show where your income came from and how your expenses were calculated.

Good records not only help you file on time but also make it easier to track your finances, claim allowable expenses, and respond quickly if HMRC ever queries your return.

How long to keep your records

HMRC requires most individuals to keep their Self Assessment records for at least five years after the submission deadline.

For example, if you file your 2023 24 tax return by 31 January 2025, you must keep your records until 31 January 2030.

If HMRC starts an enquiry into your tax affairs, you must retain your records until the investigation is complete, even if this extends beyond the five-year limit.

Companies and partnerships may need to keep records for longer, typically six years.

What records you need to keep

The records you must keep depend on your sources of income. In general, you need to retain anything that shows:

The money you earned during the tax year.

The expenses and costs you incurred wholly for business purposes.

Any other income such as interest, dividends, or rental income.

Below is a breakdown of what to keep for different types of income.

1. Self employment

If you are self employed, you must keep records that show your income and business expenses. These include:

Sales invoices, till receipts, or records of services provided.

Bank statements and payment records showing money received.

Expense receipts such as travel, supplies, equipment, and insurance.

Mileage logs if you use a vehicle for business.

Records of cash transactions or petty cash books.

Details of business assets such as computers or machinery (for capital allowances).

Copies of previous tax returns and HMRC correspondence.

If you use accounting software such as Xero, QuickBooks, or FreeAgent, ensure all digital records are stored securely and backed up.

2. Employment income

If you are employed as well as self employed, keep:

Your P60 form showing total pay and tax deducted for the year.

Any P45 forms if you changed jobs.

P11D forms if you received taxable benefits from your employer.

Payslips showing bonuses or overtime.

These records ensure you report your employment income accurately alongside your self employed earnings.

3. Property income

If you earn rental income, you must keep:

Tenancy agreements and rent schedules.

Records of rent received and deposits returned.

Invoices and receipts for allowable expenses such as repairs, maintenance, letting agent fees, and insurance.

Mortgage interest statements (if applicable).

Utility bills or council tax paid by the landlord.

Details of capital improvements to the property.

Accurate records allow you to separate deductible repair costs from capital improvements, which affect future Capital Gains Tax.

4. Investment and savings income

For interest, dividends, and other investment income, retain:

Bank and building society statements showing interest received.

Dividend vouchers or statements from shareholdings.

Investment portfolio reports.

Evidence of ISA contributions (for information only, as they are tax free).

These documents ensure your tax return reflects all taxable investment income.

5. Pensions and benefits

If you receive pension income or benefits, keep:

Annual pension statements (P60 or P45 from pension providers).

Details of lump sum payments or drawdowns.

Records of state pension payments or other taxable benefits.

6. Other income

If you earn income from other sources such as freelance work, online sales, or foreign income, keep records that show:

Dates and amounts received.

Currency conversions for overseas income.

Correspondence or contracts confirming payments.

You must declare all income to HMRC, even if it is not from your main business or employment.

Digital record keeping and Making Tax Digital

HMRC’s Making Tax Digital (MTD) initiative is changing how records are kept and submitted.

If you are self employed and VAT registered, you must already keep digital records and file VAT returns using MTD-compatible software. From April 2026, MTD for Income Tax will also apply to self employed individuals and landlords with income over £50,000.

Digital records should include:

Dates and amounts of sales and purchases.

VAT information (if applicable).

Invoices and receipts stored electronically.

Using accounting software helps you stay compliant and makes it easier to complete your tax return each year.

What happens if you do not keep proper records

If you fail to keep adequate records, HMRC may:

Estimate your income and expenses, which could result in a higher tax bill.

Impose penalties for poor record keeping.

Open an enquiry into your tax affairs.

Having complete and organised records protects you if HMRC questions your figures or asks for evidence to support your tax return.

How to organise your records

Keeping records organised saves time and reduces errors when completing your return. Some useful tips include:

Store digital copies of receipts and invoices as you receive them.

Use a dedicated business bank account to separate business and personal finances.

Record transactions weekly to avoid missing details.

Back up all data regularly to secure storage.

File paper documents by category and tax year.

You can keep records digitally or on paper, but digital storage is increasingly encouraged by HMRC.

Example scenario

Sophie runs a freelance design business. She uses accounting software to log income from clients, track expenses, and store digital receipts. She also keeps paper copies of key contracts and bank statements.

At the end of the tax year, Sophie’s accountant uses the records to prepare her Self Assessment accurately. Because everything is complete and well organised, the process is straightforward, and Sophie avoids any penalties or delays.

Common mistakes to avoid

Mixing business and personal expenses in the same bank account.

Failing to keep receipts for small cash expenses.

Discarding records before the five-year retention period ends.

Forgetting to record non-cash income such as barter or exchange transactions.

By keeping consistent and detailed records, you can avoid these issues and ensure your Self Assessment is accurate.

Conclusion

For your Self Assessment, you must keep detailed records of income, expenses, and any other taxable earnings. HMRC requires you to store these records for at least five years after the filing deadline.

Good record keeping makes it easier to file accurate tax returns, claim all allowable expenses, and defend your figures if HMRC ever investigates. Whether you store records digitally or on paper, being organised will save time, reduce stress, and help you stay compliant with tax regulations.