What Records Do You Need to Keep for HMRC in 2026? A Complete Guide for Self-Employed, Landlords & Limited Companies
What Records Do You Need to Keep for HMRC in 2026? A Complete Guide for Self-Employed, Landlords & Limited Companies
Yes — HMRC requires you to keep accurate business and tax records so you can complete your tax returns correctly and prove your figures if they carry out a check. Poor record-keeping is one of the most common reasons for penalties, disputes, and unexpected tax bills.
Updated March 2026: With Making Tax Digital for Income Tax (MTD ITSA) now mandatory for self-employed individuals and landlords earning over £50,000 (and rolling out to lower thresholds in coming years), digital record-keeping is no longer optional for many. Paper records alone are no longer sufficient for those in scope.
At Filing Accounts, we help self-employed people, landlords, and limited company directors maintain compliant records and avoid costly HMRC penalties. Contact us today for practical record-keeping advice or to set up proper systems for your business.
Why You Must Keep Records for HMRC
HMRC expects you to keep records that allow you (and them) to:
- Calculate your correct tax liability
- Support your Self Assessment, Corporation Tax, or VAT returns
- Provide evidence during any compliance check or enquiry
Failing to keep adequate records can lead to:
- Fixed penalties of £100+
- Further penalties based on the tax at risk
- Loss of expense claims
- Increased chance of a full tax investigation
What Records Do You Need to Keep? (By Business Type)
1. Self-Employed / Sole Traders
You must keep records of:
- All income — invoices issued, bank statements, till rolls, online sales reports, and any other money received
- All business expenses — receipts, invoices, mileage logs, bank statements, and petty cash records
- Personal income — PAYE payslips, pensions, savings interest, dividends, etc.
- VAT records (if VAT registered) — full VAT invoices and VAT account summaries
- PAYE records (if you employ staff)
- Mileage and vehicle records — business miles, fuel, and maintenance
- Home office expenses — if claiming a proportion of rent, utilities, etc.
Digital requirement (from April 2026): If your combined self-employment + property income exceeds £50,000, you must keep digital records and submit quarterly updates under Making Tax Digital.
2. Landlords (Property Income)
- Rental income records (tenancy agreements, rent receipts)
- Property expenses (repairs, insurance, agent fees, mortgage interest — note restrictions apply)
- Utility bills and service charges
- Capital expenditure (for capital allowances or CGT purposes)
3. Limited Companies
Companies must keep full accounting records for at least 6 years from the end of the financial year, including:
- Sales and purchase invoices
- Bank, credit card, and cash records
- Asset registers (for depreciation and capital allowances)
- Payroll and RTI records (if you have employees)
- Director’s loan accounts
- Minutes of board meetings (especially for dividends)
How Long Do You Need to Keep Records?
| Situation | Minimum Retention Period |
|---|---|
| Self-Employed / Self Assessment | 5 years after 31 January filing deadline |
| Limited Companies (Corporation Tax) | 6 years from end of accounting period |
| VAT-registered businesses | 6 years |
| PAYE / Employment records | 3 years (some up to 6 years) |
Example: For the 2025/26 tax year (filed by 31 Jan 2027), self-employed individuals must keep records until at least 31 January 2032.
Making Tax Digital Record-Keeping Requirements (2026)
From April 2026, if your self-employment or property income exceeds £50,000:
- All records must be kept digitally in HMRC-recognised software
- You cannot rely on paper records or spreadsheets alone
- You must submit quarterly updates to HMRC
Even if you’re below the threshold, moving to digital records now is highly recommended.
Best Practice Tips for Record-Keeping in 2026
- Use accounting software (Xero, QuickBooks, FreeAgent, etc.) for automatic bank feeds and digital trails
- Scan and store all receipts digitally with date, amount, and description
- Keep separate personal and business bank accounts
- Review records monthly rather than leaving everything until year-end
- Back up your data regularly (cloud storage is best)
- Maintain a mileage log if claiming vehicle expenses
What Our Clients Say on Trustpilot
- “Filing Accounts set up proper digital records for me under MTD. Made my life so much easier!” – Anonymous, March 2026 (5 stars)
- “They reviewed my existing records and helped me become fully compliant. Excellent service.” – Mark T., February 2026 (5 stars)
- “Saved me from potential penalties with clear record-keeping advice.” – Sarah L., January 2026 (5 stars)
With our consistent 4.2/5 Trustpilot rating, businesses trust us to keep their records HMRC-compliant.
Frequently Asked Questions
What is the penalty for not keeping records? HMRC can charge penalties of £100 or more, plus further penalties based on the tax lost.
Do I need to keep paper copies? No — digital records are acceptable (and required under MTD), as long as they are accurate and accessible.
How long should I keep records if I’m a limited company? At least 6 years from the end of the company’s financial year.
Can Filing Accounts help me set up proper record-keeping? Yes — we can review your current system, recommend software, and ensure you meet all HMRC requirements.
Official GOV.UK resources:
- Business records if you’re self-employed
- Keeping records for Self Assessment
- Making Tax Digital for Income Tax
Need Help Setting Up Proper HMRC-Compliant Records?
Good record-keeping doesn’t have to be complicated or time-consuming. Filing Accounts provides practical, affordable support to help you maintain compliant records, whether you’re self-employed, a landlord, or running a limited company.
Contact us today or book a free consultation — we’ll review your current records and set you up with a system that works for your business in 2026.