The receipts you actually need to keep

Every January someone arrives with a carrier bag. Inside is a year of till receipts, some faded to blank, most of them for things that were never going to be claimed anyway. It takes hours to sort and adds nothing to the return. Here is how to avoid being that person, and what to keep instead.

What counts as a record

For a business expense to be claimed, you need something that shows what was bought, from whom, when, and for how much. A till receipt does that. So does an invoice, an email confirmation, or a statement line plus a note of what it was for. A bank statement on its own is usually enough for small, obviously business costs like software subscriptions or train fares; for anything larger, or anything a tax inspector might query, keep the document.

You need to keep records for several years after the tax year they relate to, so “I threw it away in March” is not an answer anyone wants to give.

What you can stop keeping

Receipts for things you will not claim. Duplicate copies. The paper receipt once you have a clear photo of it. Personal purchases mixed in with business ones, unless you are splitting the cost, in which case keep it and note the split.

If you are not sure whether something is claimable, keep the receipt and ask. It is a thirty-second question and the answer is usually the same next time.

The habit that fixes it

Photograph the receipt on the day, with your phone, into whatever app your accountant uses. Ours files it against the matching bank transaction, so by the time the books close there is nothing to find. The trick is to do it at the moment of purchase, before the receipt goes into a pocket. Coffee, then photo, then leave the shop.

For emailed receipts, forward them to the address your accountant gives you. For subscriptions, set up the forward once and forget about it.

If you are already behind

Do not try to reconstruct the whole year in one sitting. Start with the largest purchases and work down; those are the ones that matter for the return and the ones an inspector would look at first. For the small stuff, a bank statement and a sensible description will usually do. Then start the photo habit today, so next year the bag stays in the cupboard.

This is general information, not financial advice. What is claimable depends on your trade and your circumstances, so check with your accountant.