Receipts: what HMRC needs and whether digital copies count

Yes, digital copies count. HMRC accepts a scanned or photographed receipt instead of the paper original, as long as the copy is complete, legible and shows everything the original did. You still need to keep the image for the full retention period, and a few documents must be kept in their original form.

Does HMRC accept photos of receipts?

HMRC accepts photos and scans if they are an exact replica of the original. Its Compliance Handbook at CH13400 says you must keep the original documents that record sales, purchases and expenses “unless those original documents have been copied in a way that provides an exact replica”.

The copy must be full and complete, including any useful information on the reverse, and you must be able to produce it in a legible form when HMRC asks. If you can do that, you can bin the paper.

A typed entry in your software is not a copy. VAT Notice 700/21 says keyed-in invoice data “is not a copy of the invoice”, so the invoice must be kept. A stored scanned image with all the VAT detail is enough.

What makes a digital receipt acceptable?

A digital receipt is acceptable when someone could read every detail from it years later. Use this checklist:

• the whole receipt is in the image, edge to edge
• the supplier name, date, amount and description are readable
• the VAT number and VAT amount are visible, if you will reclaim VAT
• anything printed on the back is captured too
• the file is backed up and named by date and supplier

Photograph paper receipts the day you get them, before they fade or go missing.

Which originals must you keep?

A short list of documents must stay in paper form. HMRC’s CH13300 names:

• statements showing a company distribution and its tax credit
• statements showing a payment with income tax deducted (gross, deduction and net)
• Construction Industry Scheme payment and deduction statements
• records needed to claim relief for tax paid overseas

For VAT, Notice 700/21 says you must keep a C79 import VAT certificate in its original form.

How long do you need to keep receipts?

The period depends on your business type. These are the GOV.UK rules.

So a sole trader’s receipts for 2025/26 must be kept until at least 31 January 2032. Companies must keep records longer if a transaction spans more than one accounting period, an asset will last more than 6 years, a Company Tax Return was late or HMRC has opened a compliance check.

Our guide to record keeping for Self Assessment covers the rest of a sole trader’s records.

What does a VAT receipt need to show?

To reclaim VAT you normally need a valid VAT invoice from the supplier. VAT Notice 700 sets out three levels.

If you lose a VAT invoice, ask the supplier for a copy first. If that fails, paragraph 19.5.3 says you must show HMRC the supply took place, was taxable and was for your business, using other evidence. HMRC can use its discretion where you took reasonable steps. See reclaiming VAT on business expenses.

What happens if you do not keep receipts?

HMRC can charge a penalty of up to £3,000 for failing to keep or preserve adequate records. HMRC’s Self Assessment Claims Manual at SACM4020 cites section 12B(5) of the Taxes Management Act 1970. It says HMRC often warns first, but may charge the full penalty without warning if records were destroyed deliberately.

For companies, GOV.UK says the fine is up to £3,000 and a director could be disqualified. The bigger cost is usually the tax on expenses you cannot prove.

If records are lost or destroyed, try to recreate them. A company must tell its Corporation Tax office straight away; sole traders should give best estimates and tell HMRC when they file.

Which rules apply to you?

• If you are a sole trader below the MTD threshold, keep receipts or images for 5 years after the 31 January deadline.
• If you must join MTD for Income Tax, you keep digital records in software anyway, so store receipt images there. See who must join in April 2027.
• If you run a limited company, keep everything for 6 years from your year end, and set staff rules in an expenses policy.
• If you are VAT-registered, check each receipt shows the supplier’s VAT number before you reclaim.
• If you claim mileage, keep a log of dates, journeys and miles; you need no fuel receipts for the mileage rate itself. Our mileage calculator works out the claim.

Frequently asked questions

Can I throw away paper receipts after scanning them?

Yes, if the scan is a complete and legible copy of the original, including the reverse. Keep originals for CIS statements, tax-deducted payment statements, dividend tax credit statements, overseas tax claims and C79 certificates.

Is a bank statement enough instead of a receipt?

A bank statement proves you paid, but not what you bought. HMRC lists bank statements as one type of proof, so keep them alongside receipts; for VAT you also need a valid VAT invoice to reclaim.

Do I need a receipt to reclaim VAT on parking?

No, if each parking charge is £25 or less including VAT. VAT Notice 700 also covers coin-operated machines, phone calls and single toll charges.

What is the penalty for not keeping business records?

Up to £3,000 under section 12B(5) of the Taxes Management Act 1970. HMRC usually warns first, unless records were destroyed on purpose.