Essential business records to keep
Income, expenses, payroll, capital purchases, the records every UK business should keep, and a simple system that works.
RR AccountantsLast updated: 2025-01-155 min read
Income records
- Sales invoices issued (numbered, with date, customer, amount, VAT if applicable)
- Till rolls or POS reports if you take cash
- Bank statements showing receipts
- Credit notes issued
Expense records
- Purchase invoices and receipts (with date, supplier, amount, VAT)
- Bank statements showing payments
- Credit card statements for business cards
- Mileage logs if you claim travel
- Petty cash records if you handle cash
Capital records
- Purchase invoices for fixed assets (computers, machinery, vehicles)
- Disposal records when you sell or scrap assets
- Capital allowances pool tracking by year
Payroll records (if you employ people)
- FPS and EPS submission receipts
- Pay records for each employee, each pay run
- P11D records for taxable benefits
- Pension contribution records
A simple system that scales
- One business bank account, separate from personal
- Cloud bookkeeping software linked to the bank feed
- Receipts captured by phone (most software has an app)
- Monthly reconciliation — match every bank line to a record
- Quarterly review with your accountant if you have one
What HMRC asks for
During a compliance check, HMRC typically asks for: bank statements, sales records, purchase records, payroll records, and any specific invoices flagged in the return. Reconciled records make this routine; unreconciled records turn it into an enquiry.
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