Receipts or it didn't happen
Lesson 5 of 12 in our free Side Hustles & Self-employment guide: a 5-minute money game with the key points below.
This lesson is in the full version.
Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Side Hustles & Self-employment is free for everyone.
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Questions you'll answer
Mo's 2026/27 return is due online by 31 January 2028. Keep the records until at least…
Quick facts
- Receipt for stock you bought to resell → Keep it. Business costs — and proof you can claim them.
- Record of every sale and what you were paid → Keep it. Your income. HMRC will want to see it adds up.
- Your personal takeaway receipts → Not needed. Not a business cost, sadly. Even if you were 'thinking about the business' while eating.
- Postage receipts for orders → Keep it. Allowable business cost — keep proof.
- Bank statements showing business payments → Keep it. Backs everything else up.
- Fact: “A photo or scan of a receipt can count as a record.” — Digital copies are fine as long as they're clear and you keep them.
- Myth: “If you don't keep records, HMRC just takes your word for it.” — No records can mean penalties, and you can't prove the costs you claimed.
- Fact: “Using a separate bank account for your hustle makes records easier.” — Not legally required for sole traders, but it massively helps keep business and personal spending apart.