What records do I need to keep as a sole trader?
Answered 11 March 2026
Records a Sole Trader Must Keep
What the law says
Under TMA 1970, s.12B(1), any person who may be required to make and deliver a Self Assessment return must:
- keep all records requisite for the purpose of enabling them to make and deliver a correct and complete return; and
- preserve those records until the end of the relevant day
What records must be kept — for a business, the statutory records include:
- all receipts and expenses
- all goods purchased and sold
- all supporting documents relating to business transactions — i.e. accounts, books, deeds, contracts, vouchers and receipts (including computer records)
How long to keep them — as a sole trader carrying on a trade, profession or business, you must keep records until the fifth anniversary of the 31 January next following the year of assessment (e.g. for 2023/24, until 31 January 2030). This period is extended if HMRC opens an enquiry into your return — records must then be kept until the enquiry is completed.
HMRC guidance / practice
Format — records do not have to be in any particular format, but they should be up to date and kept in sufficient detail to:
- allow you to make a correct and complete return
- allow you to calculate the correct amount of tax to be paid or claimed
- enable HMRC to check the figures on the return
Typical records that an accountant or HMRC would expect to see include:
- A cash book — an analysis of cash and bank transactions, receipts and expenditure
- A record of sales on credit (e.g. an invoice pad or memorandum book)
- Purchase invoices and suppliers' statements
- A stock list at year end
- Bank statements
- Invoices for purchases and expenses
HMRC guidance specifically states that a sole trader should keep:
- Written and electronic records of all receipts and expenses in the course of the business
- Written and electronic records of all sales and purchases made in the course of the trade
- Copies of all receipts and invoices
Poor record-keeping — HMRC illustrates that a self-employed person who does not keep structured records and uses estimated figures to complete their return is considered to have shown a lack of reasonable care, which can lead to penalties.
Note: If you are also VAT-registered, additional record-keeping obligations apply under the VAT rules (and Making Tax Digital for VAT if applicable). If you are brought within Making Tax Digital for Income Tax (from April 2026), you will additionally be required to keep digital records using compatible software.
Citation sources
To make the above condition SMART the caseworker should set the conditions that will ensure that the person has a process/system in place that will make sure they: keep both written and electronic records of all receipts and expenses in the course of the business from a specific date keep both written and electronic records of all sales and purchases made in the course of the trade from a specific date retain copies of all receipts and invoices and ensure they are used in completing the return b
ch 36, para 58, to include TMA 1970. 53. For the meaning of information or documents which a person is required to keep and preserve under the Taxes Acts, TMA 1970, s 12B relevantly provides as follows: “(1) Any person who may be required by a notice under section 8, 8A, 11 or 12AA of this Act to make and deliver a return for a year of assessment or other period shall— (a) keep all such records as may be requisite for the purpose of enabling him to make and deliver a correct and complete return
Section 12B(3) & (6) In the case of a business (including the business of letting a property) the records that must be kept include records of: all receipts and expenses all goods purchased and sold all supporting documents relating to the transactions of the business, that is accounts, books, deeds, contracts, vouchers and receipts (and computer records - FA08/S114).
PART 1 General Citation and commencement 1 These Regulations may be cited as the Income Tax (Digital Requirements) Regulations 2021 and come into force on 6th April 2026 . Interpretation 2 In these Regulations— “TMA 1970” means the Taxes Management Act 1970; “Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs; ... “digital records” has the meaning given by regulation 6; “the digital requirements” has the meaning given by regulation 3(1); “digital start date” has the mea
When preparing accounts the accountant will generally have available an analysis of cash and bank transactions, receipts and expenditure (the cash book). In practice drawings and the weekly cash balance are not always recorded. Prime records of takings such as till rolls may not be provided a record of sales on credit, possibly an invoice pad or memorandum book. There may be a record of purchases on credit, although this is less likely: the trader may rely on suppliers’ invoices and statements a
The records that a person keeps will generally reflect the size and complexity of their affairs. They may range from the simplest of manual records for a sole trader to the most sophisticated computerised system for a multi-national company. The records do not have to be in any particular format, but they should be up to date and kept in sufficient detail to allow the person to make a correct and complete return allow the person to calculate the correct amount of tax or duty to be paid or claim
(2) is that a person carrying on a trade, profession or business must keep their records until the fifth anniversary of the 31 January next following the year of assessment. For the tax years 2015-16 and 2016-17, these periods expired on 31 January 2022 and 31 January 2023 respectively. 68. I respectfully agree with the decision of this Tribunal in Sarah Duncan v HMRC [2018] UKFTT 296 (TC) at [28], for the reasons given by Judge Redston in that case, that the time limits in the statutory records
Paul, a self employed plumber, does not pay much attention to his record-keeping responsibilities and has no structured system for making sure that his records are accurate. When Paul completes his SA tax return he cannot be certain that his figures are correct and is unable to check them. This attitude towards record-keeping indicates a lack of reasonable care.