Receipts guide
How to keep receipts for tax: what to keep, how long and how to organise them
Keep a receipt or invoice for every business expense you plan to claim. Photograph it the day you get it, note the supplier, date, amount and category, and mark it as business. Sort receipts by tax year, not calendar year, and keep them for as long as your tax office asks: in the UK that's at least 5 years after the Self Assessment deadline for self-employed people, and in the US generally 3 years after filing.
Which receipts to keep
If you're self-employed, a freelancer or a sole trader, business expenses reduce the profit you pay tax on. Your receipts are the proof. Keep one for anything you'll claim, such as:
- Equipment: a laptop, a camera, tools.
- Software and subscriptions you use for work.
- Travel for work: train tickets, fuel, parking, hotels.
- Phone and internet, or the business share of them.
- Supplies and stock: materials, postage, packaging.
- Office costs: stationery, printing, a desk.
Keep your sales invoices and bank statements alongside them. Personal spending, like groceries or a night out, doesn't need keeping for tax, though tracking it can still help your budget.
What a receipt needs to show
A receipt is useful as evidence when anyone can tell what was bought, from whom, when and for how much. Check it shows:
| Detail | Why it matters |
|---|---|
| Supplier name | Shows who you paid |
| Date | Puts the expense in the right tax year |
| Amount | The figure you claim |
| What was bought | Shows it was for the business |
| VAT or sales tax | Needed if you're VAT-registered and reclaim it |
If a till receipt just says "Goods £34.99", add a note of what it was. Card-machine slips without item details are weak evidence on their own, so ask for the full receipt.
How long to keep receipts
It depends on where you pay tax and how your business is set up. As a guide:
- UK, self-employed (Self Assessment): HMRC asks you to keep records for at least 5 years after the 31 January submission deadline for that tax year. So receipts from the 2025 to 2026 tax year are kept until at least 31 January 2032.
- UK limited companies usually need to keep records for longer. Check HMRC's guidance for companies.
- US: the IRS generally asks you to keep records for 3 years from when you filed the return, and longer in some situations.
The UK tax year runs from 6 April to 5 April, so a receipt from 3 April belongs to a different year from one dated 7 April. Sorting by tax year from the start saves untangling it later.
Do photos of receipts count?
Generally, yes. HMRC and the IRS both accept records kept digitally, as long as the copy is clear and complete. Thermal till receipts fade within months, so a photo taken on the day is often more reliable than the paper.
- Photograph it flat, in good light, with the whole receipt in frame.
- Check it's readable: supplier, date, total and items.
- Name or tag it with the category and whether it's business.
- Back it up somewhere other than your phone.
Sorting expenses by category
Tax returns ask for expenses in groups, so sorting as you go makes the return a copying job. A handful of categories covers most freelancers: travel, transport, fuel, supplies, software, office, phone and internet, and other. Pick a category for every receipt when you save it, not at the end of the year.
A simple monthly routine helps: on the first of the month, check last month's receipts are all in, each has a category and a business tag, and nothing is missing compared with your bank statement.
A worked month
Worked example
Business: Software £24 (design tool). Travel £58.40 (train to a client). Supplies £18.75 (printer ink). Phone and internet £30 (business share). Total £131.15.
Personal: Groceries £212.30. Eating out £46. These aren't claimed, so they stay untagged.
At the end of the tax year, add up each business category across all 12 months. Those totals go on your return, and the receipts back them up.
Keeping receipts on a phone
Receipts turns a photo of a receipt into an expense, without uploading anything:
- Snap it at the till, or choose a photo or scan. The total, shop and date are read on your device, and you can fix anything in a tap. You can also type a receipt in.
- Pick one of 14 categories, from Travel and Software to Phone & internet, and switch on Business expense.
- The Totals tab shows spending by month or by tax year. Set when your tax year starts in Settings: 1 January, 6 April (UK), 1 April, 1 July or 1 October.
- Search and filter to find a receipt again, with its photo kept alongside it.
- Business receipts can count in Invoice's profit and loss, and every receipt can show up in Budget as spending, once you allow it.
Scanning, 20 receipts a month, categories, business tags, totals and backups are free, with no ads or sign-up. Receipts Pro ($2.99 once) adds unlimited scans, a CSV of every receipt, and a tax-year export of business expenses with totals by category for you or your accountant.
Common mistakes
- A shoebox of paper. Thermal receipts fade. Photograph them on the day.
- Mixing business and personal. Tag each receipt so the business total is one tap away.
- Sorting by calendar year when your tax year starts in April.
- Throwing records away too soon. Check how long your tax office expects them kept.
- Claiming without evidence. If a receipt is lost, keep the bank statement and a note.
- Leaving it all to January. Ten minutes a month beats a weekend of guesswork.
Questions
How long should I keep receipts for tax?
In the UK, if you're self-employed and file a Self Assessment return, HMRC asks you to keep records for at least 5 years after the 31 January submission deadline for that tax year. In the US, the IRS generally asks for 3 years from when you filed, and longer in some cases. Check the current rules for your situation.
Are photos of receipts accepted?
Tax offices such as HMRC and the IRS generally accept records kept digitally, as long as the copy is clear and complete: the supplier, date, amount and what you bought must be readable. Many people keep the photo and recycle the paper. Check the rules for your situation.
Which receipts do I need to keep?
Keep receipts for anything you'll claim as a business expense: equipment, software, travel, phone and internet, office supplies and so on. Keep sales invoices and bank statements too. Personal spending doesn't need to be kept for tax.
What if I lose a receipt?
Use other evidence: a bank or card statement, an email confirmation or a copy from the supplier. Write a note of what the expense was for. To avoid it next time, photograph receipts as soon as you get them.
Should business and personal expenses be kept separately?
Yes. Tagging each receipt as business or personal, and ideally using a separate bank account for the business, makes your tax return quicker and easier to check.
Is Receipts free?
Yes. Scanning and reading receipts, 20 receipts a month, categories, business tags, totals and backups are free, with no ads and no sign-up. Receipts Pro is an optional one-time upgrade ($2.99) for unlimited scans and CSV and tax-year export.