Naturally there has to be an exception, and that is when you receive documents such as bank interest certificates or dividend vouchers. These documents have to be kept in their original form - so that means that if you receive these in paper format, you’ll need to retain that paper.

If, however, you receive these documents in an electronic form (for example, you’re emailed a .pdf dividend voucher by a company in which you own shares), you can keep that .pdf file - you just can’t change it to another format, like an image.

Also, when you’re scanning your documents, if you receive a document that has information on the back as well (such as an invoice with terms and conditions on the back), then you have to scan both sides.

To scan your receipts, either invest in a scanner or send your receipts to a service like Receipt Bank and let them do the scanning for you.

To make it easy to find your receipts later on, set up a structured folder layout that will be easy to keep up-to-date. Alternatively if you use cloud accounting software such as Xero or Quickbooks you can upload the scanned receipt to the transaction record in the software.

HMRC require you to retain your records for a number of years so when you scan receipts, you should be confident that they’re backed up securely. To find out more, take a look at HMRC's requirements for limited companies and sole traders.

Finally, don’t forget that managing your receipts doesn’t have to be about sitting at a desk and scanning pieces of paper - why not just snap a photo of that receipt on your smartphone as soon as you spend the money?

Look out for more new tax year tips in the next few days.

 

Noel Guilford