Record-keeping made simple: a practical UK checklist
Record-keeping sounds boring until you need something urgently: a VAT return deadline, a Self Assessment question, a mortgage application, or an HMRC letter.
The goal isn’t perfection. It’s a simple system you can stick to.
What “good” record-keeping looks like
Good record-keeping means you can answer these quickly:
- what you earned (and when)
- what you spent (and why)
- what you owe (tax, VAT, CIS/PAYE)
- where the evidence is (invoices, receipts, statements)
If you can do that, your bookkeeping becomes calmer and your decisions get easier.
A simple setup that works for most small businesses
1) One place for your records
Pick one:
- accounting software
- a spreadsheet plus a tidy folder structure
- a bookkeeper who maintains a system for you
The common mistake is “a bit of everything” (emails, photos, paper, bank notes) with no central home.
2) Capture receipts as you go
Two easy rules:
- take a photo or forward the invoice the day you get it
- store it in the right month (or the right VAT quarter)
This stops the classic shoebox problem.
3) Reconcile monthly
A monthly rhythm helps you spot issues while they’re still easy to fix:
- match bank transactions to invoices/receipts
- confirm sales are complete
- flag anything unclear in a “questions” list
Even 30 minutes a month is better than six hours in January.
4) Keep your paperwork clear
For many businesses, the essentials are:
- sales invoices / sales summaries
- supplier invoices and receipts
- bank statements (and card statements)
- mileage log (if relevant)
- notes explaining anything unusual
If you’re in construction, add CIS statements and verification notes.
How long do you need to keep records?
Record retention rules vary depending on your situation.
As a general guide:
- Self Assessment records are often kept for at least 5 years after the 31 January submission deadline for the tax year.
- VAT records are often kept for several years (commonly 6 years, with exceptions).
If you’re not sure what applies to you, ask early — it’s easier to set up the right habit than to recreate missing records later.
A quick “monthly checklist” you can save
- Upload/file all receipts and invoices
- Reconcile the bank
- Check VAT coding (if VAT registered)
- Save key statements/reports
- Update your “questions” list
- Put aside money for tax/VAT (if you do this)
Disclaimer
This article is general information, not tax advice. Record-keeping requirements depend on your circumstances and can change. If you’re unsure how long to keep records or what evidence you need, check the latest HMRC guidance or get tailored advice.
If you want a simple system that you’ll actually keep up with, ClearMethods can help you set up a monthly rhythm and a tidy structure that makes deadlines much less stressful.