Record‑Keeping Isn’t Bureaucracy. It’s Protection.
Recently, I was asked a question that many business owners quietly wonder:
“Are you the type of accountant who insists on keeping a receipt for every purchase?”
My answer was simple: You are the one who must be able to stand up in court or in front of HMRC and prove that an expense was wholly and exclusively for business. Not me.
Under UK tax law, HMRC requires businesses to keep records of all receipts and expenses, along with evidence showing what the expenditure was for and why it relates to the trade. This isn’t my personal preference — it’s the legal standard for claiming a tax‑deductible expense.
So yes — I insist on evidence, because HMRC insists on evidence.
Now, that doesn’t always mean a paper receipt. If the nature of the transaction is clear from a bank statement or other documentation, that can sometimes be enough. But if it’s a generic Amazon purchase, and there’s no receipt or description? You will struggle to prove it was a legitimate business expense.
The individual who asked the question ultimately chose to stay with their current accountant and “work towards my requirement of receipt keeping.”
But let me be clear:
📌 It’s not my requirement.
📌 It’s HMRC’s requirement.
📌 And it exists to protect you.
Good record‑keeping isn’t bureaucracy — it’s peace of mind. It’s the difference between confidently claiming legitimate expenses and losing sleep over a potential enquiry.
If your accountant is helping you stay compliant, they’re helping you stay safe.
