What good records look like
Who this guide is for: A practical checklist for sole traders who need evidence for Self Assessment — not just a bank feed.
- Step 1Record income and costs
- Step 2Keep evidence
- Step 3File Self Assessment
- Step 4Retain for five years after 31 January
Use this as an on-page checklist for each tax year:
- Sales and other business income
- Invoices issued and received
- Receipts and proof of payment
- Bank and card statements (business and relevant personal)
- Expense listings linked to evidence
- Mileage logs where vehicle costs are claimed
- Business / private apportionment workings
- Grants and support payments
- Stock records where relevant
- Capital purchase invoices and disposal notes
- Tax deducted at source (for example CIS)
- Partnership statements where relevant
- Pension and student-loan information needed for Self Assessment
Retention periods
Keep Self Assessment business records for at least five years after the 31 January filing deadline for that tax year. If you file late, or HMRC opens an enquiry, keep records for longer — until the matter is closed.
Bank statements alone are rarely enough: HMRC may ask for the underlying invoice or receipt that explains a payment.
Digital records and Making Tax Digital
Digital folders, bookkeeping software and clear scans are all acceptable if you can produce a complete audit trail. Making Tax Digital for Income Tax will require compatible digital records and quarterly updates for many sole traders and landlords once their qualifying-income phase starts — prepare systems early.
Expense categories and evidence also matter for allowable expenses and cash-basis choices — see Allowable Expenses for Sole Traders and Cash Basis for Sole Traders.