As a sole trader, you may find the phrases \u2018record-keeping\u2019 and \u2018self-assessment\u2019 daunting. Unfortunately, as a result, many self-employed people ignore the task, which can lead to a backlog of work near the tax return deadline. However, understanding your record-keeping obligations can bring you a step closer to a hassle-free tax year. This article explores record-keeping requirements for sole traders.<\/p>\n\n\n\n
As a sole trader<\/a>, you must keep records showing your: <\/p>\n\n\n\n You need to keep these records so you can complete your annual Self-Assessment tax return. <\/p>\n\n\n\n You must keep:<\/p>\n\n\n\n Specific types of records you should keep include, but are not limited to:<\/p>\n\n\n\n You have the flexibility to decide where to keep your records, but they need to be clear and accessible. Consider factors such as security and ease of retrieval. For example, you might store your records on a computer. You should be able to access them for your tax return and if HM Revenue & Customs (HMRC) requests to view your records. Ensure that you keep separate records showing your business and personal income. <\/p>\n\n\n\n You might want to use bookkeeping software. Such software can make record-keeping and accounting easier as it remains in one place. Keep in mind that the UK Government plans to digitise tax returns by April 2026 for those with an income over \u00a350,000.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n\n
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Where Should I Keep My Records as a Sole Trader?<\/h2>\n\n\n\n