The Lemon Fool

We (Mrs C and I) have a small holiday let business and report income and expense as a trade on our personal tax returns. For many years I have filed away receipts in case I need to present them to anyone; whether for warranties or tax purposes. However, I want to start scanning all my receipts to store them digitally. Does the HMRC accept scanned receipts, should they ever ask me to prove expenditure?

Thanks
C

Yes they do...

https://www.gov.uk/keeping-your-pay-tax-records

How to keep your records

There are no rules on how you must keep records. You can keep them on paper, digitally or as part of a software program (like book-keeping software).

HMRC can charge you a penalty if your records are not accurate, complete and readable.

pochisoldi wrote:Yes they do...

https://www.gov.uk/keeping-your-pay-tax-records

How to keep your records

There are no rules on how you must keep records. You can keep them on paper, digitally or as part of a software program (like book-keeping software).

HMRC can charge you a penalty if your records are not accurate, complete and readable.

That's good to know that a software program would be adequate because I use MS Money. I had presumed that I'd need to have receipts to prove the payments too.

Clariman wrote:

pochisoldi wrote:Yes they do...

https://www.gov.uk/keeping-your-pay-tax-records

How to keep your records

There are no rules on how you must keep records. You can keep them on paper, digitally or as part of a software program (like book-keeping software).

HMRC can charge you a penalty if your records are not accurate, complete and readable.

That's good to know that a software program would be adequate because I use MS Money. I had presumed that I'd need to have receipts to prove the payments too.

I'd interpret the bit relating to part of a software program meaning a digital image within the program*. For example I use Moneydance, which is similar in concept to Quicken or MS Money but allows a digital image to be saved as a part of any transaction.

You may mean this (I'm not sure I Money offers this) but thought I'd mention this just in case you were referring to the actual transaction recorded in Money rather than an image with the transaction.

* Just my opinion as a layman - I don't have any specialist knowledge in this area.

Are "records" the same as "documents"?

Laughton wrote:Are "records" the same as "documents"?

Documents are one type of record.

Or put another way, if you want to keep a record of an annual interest payment, you have many choices:
- Bank statement
- "old school" statement of interest and tax certificate
- a statement printed off from a bank ATM.
- online banking - print off a copy when requested
etc etc

staffordian wrote:I'd interpret the bit relating to part of a software program meaning a digital image within the program.

That is the correct interpretation.

Scanned copies of documents are fine and have been for many since the times when such documents were scanned and stored on microfiche.

Just keeping a record of that transaction in the accounts, whether those accounts are paper based or electronic, is not fine. HMRC may ask to see the document itself to evidence that the accounting record is correct, but a scanned copy of that document is fine.

As mentioned, some software accounting systems will allow you to keep a scanned copy of the document within the accounting records for ease of access, and some will even create the accounting record from the scanned copy of the document.

Clariman wrote:We (Mrs C and I) have a small holiday let business and report income and expense as a trade on our personal tax returns. For many years I have filed away receipts in case I need to present them to anyone; whether for warranties or tax purposes. However, I want to start scanning all my receipts to store them digitally. Does the HMRC accept scanned receipts, should they ever ask me to prove expenditure?

Thanks
C

I hardly ever see paper these days in my own property business. Pretty much every receipt or invoice I get is a pdf sent as an email attachment. Practically every tradesman is using some sort of app to do this. A lot of retailers will now also send receipts by email if you ask them. Toolstation have been doing it for several years and a UK Trade card will get you emailed and downloadable receipts for Screwfix and B&Q.