--- title: "Self-Employed Records to Keep: 2026/27 and MTD Checklist" description: "**Updated for 2026/27.** Self-employed people must keep records that support all business income, allowable expenses, tax adjustments and the figures filed with HMRC. You do not send every record with the return, but HMRC can request them during an enquiry.…" url: "https://www.accountingfirms.co.uk/knowledge-bank/what-records-do-i-need-to-keep-for-my-self-employed-business/" updated: "2026-08-12" category: Self Employed --- # Self-Employed Records to Keep: 2026/27 and MTD Checklist **Updated for 2026/27.** Self-employed people must keep records that support all business income, allowable expenses, tax adjustments and the figures filed with HMRC. You do not send every record with the return, but HMRC can request them during an enquiry. ## Sales and income records - Sales invoices and credit notes - Till, booking and job-management reports - Cash receipts and daily totals - Online marketplace and payment-processor statements - Bank interest and grants connected with the trade - Amounts retained by platforms as commission - Refunds, deposits and bad-debt evidence Record gross sales before card, marketplace or platform fees. The net bank deposit is not necessarily turnover. ## Expense records Keep supplier invoices, receipts, contracts and proof of payment for stock, materials, premises, software, insurance, professional fees, advertising, staff, travel and other costs. Mark the business reason where it is not obvious. A bank line alone may not prove what was bought or whether it was private. ## Mixed-use costs Retain calculations for home working, telephone, broadband, vehicles and other costs with both business and private use. Record the allocation basis—such as mileage, usage, rooms and time—and update it when circumstances change. ## Vehicle and travel records Keep dates, destinations, business purpose and miles for every business journey. If claiming actual costs, retain fuel, insurance, repairs, finance and purchase documents plus total and business mileage. Ordinary commuting to a permanent workplace is normally private. ## Assets and equipment Retain purchase invoices, disposal documents, dates, cost, private-use proportion and any finance agreements for computers, tools, machinery, vehicles and other assets. Cash basis can deduct many equipment costs, while cars and certain assets use capital allowances. ## Bank and payment accounts Keep statements for business bank accounts, cards, PayPal, Stripe and other processors. A separate account is strongly recommended even where not legally required for a sole trader. Reconcile transfers, loans, capital introduced and drawings so they are not mistaken for income or expenses. ## Stock and work in progress Accruals businesses should keep year-end stock counts, valuation methods, damaged stock evidence and work-in-progress calculations. Cash-basis businesses still need purchase and sales records and may need stock information for commercial accounts, finance or a later method change. ## Employees and subcontractors Keep payroll reports, RTI submissions, payslips, pension records, expenses, benefits and right-to-work evidence for employees. For subcontractors, retain contracts, status assessments, invoices and CIS verification/deduction statements where applicable. ## VAT records VAT-registered businesses need valid sales and purchase invoices, VAT account, digital links, returns and scheme calculations. Keep evidence for zero rates, exemptions, reverse charges, imports and exports. MTD for VAT applies separately from Income Tax. ## Cash basis records Record when money was actually received and paid, not only invoice dates. Preserve outstanding invoices to reconcile customer balances and support VAT or commercial reporting. Identify cash transactions not passing through the bank. ## How long to keep records Self Assessment business records are generally kept for at least five years after the 31 January filing deadline. For the 2026/27 return due by 31 January 2028, retain relevant business records until at least 31 January 2033. Keep them longer where the return is late, HMRC has opened an enquiry, losses or capital allowances carry forward, an asset is still owned, or another law requires it. VAT and payroll have their own minimum periods. ## Making Tax Digital for Income Tax MTD begins from April 2026 for qualifying income above £50,000, April 2027 above £30,000 and April 2028 above £20,000. Businesses in scope keep digital records in compatible software and submit required updates. Qualifying income is based broadly on gross self-employment and property income before expenses. Scanning a receipt helps evidence, but MTD also requires the relevant transaction data to be held digitally. Preserve digital links when moving data between software where the rules require them. ## Data security - Use multi-factor authentication - Encrypt devices and backups - Keep an independent backup and test restoration - Limit staff and adviser permissions - Download records before closing an account or platform - Follow UK GDPR for customer and employee data - Use secure transfer rather than ordinary email for sensitive files ## If records are missing Reconstruct them from banks, suppliers, customers, platforms and previous filings. Use reasonable estimates only where necessary, mark them clearly and retain the methodology. Tell HMRC when required. Missing records do not justify omitting income or inventing expenses. ## Monthly bookkeeping routine 1. Import or enter every sale and expense. 2. Record cash and platform activity at gross values. 3. Attach invoices and business-purpose notes. 4. Reconcile every bank, card and processor. 5. Review debtors, creditors and tax reserves. 6. Back up records and fix uncategorised items. ## Year-end checklist 1. Reconcile income with platform and bank reports. 2. Review private-use and home-working allocations. 3. Count stock and identify capital assets. 4. Reconcile VAT, payroll and CIS. 5. Save the filed return, computation and HMRC receipt. 6. Record the minimum destruction date. Use HMRC's official [self-employed record guidance](https://www.gov.uk/self-employed-records) and [MTD for Income Tax guidance](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax). Our [business bank account guide](https://www.accountingfirms.co.uk/knowledge-bank/do-i-need-a-separate-business-bank-account/) explains transaction separation. ## Frequently asked questions ### Do I need every paper receipt? Not necessarily if a complete, legible digital copy is retained lawfully, but keep enough evidence to prove the transaction and business purpose. ### Are bank statements enough? Usually not. They rarely show all invoice details, VAT treatment and purpose. ### Must I use accounting software? Not everyone yet, but MTD requires compatible digital records for people entering the regime. *This guide is general information. VAT, payroll and regulated businesses can have additional record duties.* ## Related Self Assessment records For employment, pension, property and investment evidence as well as business records, read our [complete Self Assessment records guide](https://www.accountingfirms.co.uk/knowledge-bank/what-records-do-i-need-to-keep-for-self-assessment/).