What Records Must I Keep for Self-Assessment Tax Returns?
Complete guide to bookkeeping requirements and digital record keeping for self-employed tradespeople. Ensure HMRC compliance and maximize tax deductions.
What Records Must I Keep for Self-Assessment Tax Returns?
As a self-employed tradesman, maintaining proper records isn't just good business practice - it's a legal requirement. HMRC can request up to six years of financial records, and poor record keeping can result in penalties up to 100% of your tax bill. This comprehensive guide covers everything you need to know about record keeping for self-assessment.
Legal Requirements: What HMRC Demands
Statutory Record Keeping Period
6 years minimum - You must keep all business records for at least 6 years after the 31st January submission deadline of the relevant tax year.
Example: For the 2024-25 tax year (ending 5th April 2025):
- Self-assessment deadline: 31st January 2026
- Keep records until: 31st January 2032
HMRC's Powers
Routine Enquiries: Can request records within 12 months of filing Full Investigations: Can go back 6 years (or 20 years for serious irregularities) Spot Checks: Random verification of income and expenses Penalties: Up to 100% of tax owed for inadequate records
Essential Records: The Complete Checklist
Income Records
All invoices issued (copies or digital records)
- Invoice numbers and dates
- Customer details and job descriptions
- Payment amounts and dates received
- Outstanding debts (aged debt analysis)
Bank statements (business and personal if mixed use)
- All deposits and payments
- Regular reconciliation with invoice records
- Clear identification of business vs personal transactions
Cash receipts (if you take cash payments)
- Daily cash takings records
- Cash book showing all transactions
- Bank deposit records matching cash takings
Payment method records
- Card payment receipts and merchant statements
- Online payment confirmations (PayPal, etc.)
- Cheque deposit records with reference numbers
Expense Records
Purchase receipts for all business expenses
- Tools and equipment
- Materials and supplies
- Vehicle expenses (fuel, insurance, repairs)
- Professional services (accountant, solicitor)
- Insurance premiums
- Marketing and advertising costs
Vehicle mileage logs (if claiming vehicle expenses)
- Business miles vs personal miles
- Journey purposes and destinations
- Fuel receipts and parking costs
- Vehicle maintenance records
Home office expenses (if working from home)
- Utility bills (gas, electricity, water)
- Council tax bills
- Mortgage interest or rent
- Home insurance
- Broadband and phone bills
Employment Records (if you have staff)
Payroll records
- Employee details and contracts
- Gross pay, tax, and National Insurance deductions
- Pension contributions
- Benefits in kind
- P45s and P60s
- PAYE and National Insurance payments to HMRC
Digital Record Keeping: The Modern Approach
Making Tax Digital (MTD) Requirements
From April 2026, businesses with turnover over £30,000 must keep digital records and submit quarterly updates.
Digital Records Must:
- Be kept in functional compatible software
- Preserve records with audit trail
- Allow digital submission to HMRC
- Maintain data for 6 years
Recommended Software Solutions
Free Options:
- Wave Accounting
- HMRC's own basic software
- Simple spreadsheet templates
Professional Options:
- QuickBooks (popular with tradesmen)
- Xero (cloud-based)
- FreeAgent (designed for freelancers)
- Sage (established business solution)
Trade-Specific Software:
- Jobber (field service management)
- ServiceTitan (larger trade businesses)
- Tradify (simple trade-focused)
Digital vs Paper: Best Practices
Go Digital Where Possible:
- Automatic bank feed integration
- Receipt scanning apps (Receipt Bank, Dext)
- Digital invoicing systems
- Cloud storage for accessibility
Keep Paper Backups For:
- Large equipment purchases
- Vehicle documents
- Insurance policies
- Legal documents
Income Records: Capturing Every Penny
Invoice Management System
Sequential numbering - Never duplicate invoice numbers Customer database - Maintain complete client records Payment tracking - Monitor what's been paid vs outstanding Regular reconciliation - Match invoices to bank deposits
Example Invoice Record System
| Invoice No. | Date | Customer | Description | Amount | Paid Date | Outstanding | |
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Stop worrying about VAT compliance and invoice formatting. Manano automatically handles all the legal requirements, payment terms, and record keeping for your Irish trade business. Text us about your job, get a professional invoice in 30 seconds.