Record-Keeping Tips for UK Small Enterprises

Chosen theme: Record-Keeping Tips for UK Small Enterprises. Build clarity, confidence, and compliance with practical steps, relatable stories, and smart habits tailored to the realities of running a small UK business. Stay with us, ask questions in the comments, and subscribe for new tips that turn paperwork into progress.

Build Your Foundation: Simple Systems That Stand Up to HMRC

Decide whether you’ll record income and expenses when cash moves (cash basis) or when invoices are raised and bills received (accrual). Stick with your method, document the choice, and confirm with your accountant to avoid messy year-end surprises.

Digital Tools That Do The Heavy Lifting

Choose tools like Xero, QuickBooks, or FreeAgent that support Making Tax Digital for VAT and offer tidy dashboards. Connect your bank, invite your accountant, and keep your VAT returns digital so submissions are accurate, timely, and painless.

Digital Tools That Do The Heavy Lifting

Snap receipts on the go with apps such as Dext or Hubdoc. Optical character recognition reads amounts, dates, and VAT, then pushes data into your ledger. Tag suppliers and projects so you can find documents instantly during reviews or HMRC checks.

Compliance Essentials: UK Rules You Can Trust

Monitor turnover against the VAT registration threshold of £90,000 (as of April 2024). Keep digital VAT records, retain purchase and sales documentation, and reconcile VAT control accounts regularly. If you use a special scheme, document how calculations are performed.

Compliance Essentials: UK Rules You Can Trust

If you run payroll, file RTI submissions on time and retain payslips, P60s, and pay calculations. Keep payroll records for at least three years from the end of the tax year, and store timesheets or contracts to support pay decisions and statutory deductions.

Habits That Save Hours (and Stress)

Every Friday, a Bristol coffee van owner spends twenty minutes reconciling the bank and snapping receipts. That tiny ritual meant their year-end took one hour, not one weekend. Adopt a similar habit and tell us your routine in the comments.

Habits That Save Hours (and Stress)

Once a month, check unpaid invoices, review your profit and loss, and scan for oddities like duplicate expenses. Flag anything uncertain for your accountant. Share your favourite checklist item below, and we’ll include top tips in our next post.

Know your retention periods

Keep business records for at least six years (often longer for assets or when inquiries are open). For companies, retain statutory documents and minutes for the required periods. Document your policy so staff know what stays, what goes, and when.

GDPR basics for small teams

Store only what you need, encrypt sensitive data, and restrict access by role. Record your lawful basis for processing personal data and be ready to respond to subject access requests. Privacy by design keeps trust—and fines—off your worry list.

Backups and continuity planning

Follow the 3-2-1 backup rule: three copies, two media, one offsite. Schedule automated backups and test restores quarterly. A Devon florist once lost a laptop—cloud backups had them trading within hours. Share your backup wins to inspire others.

Records That Reduce Your Tax Bill

Evidence for allowable expenses

Keep receipts for phone, software, protective clothing, and training related to the business. Note the business purpose on each receipt. Good narratives turn grey areas into allowable costs, saving tax while keeping your conscience—and your records—clear.

Mileage, travel, and subsistence

Log every business journey with date, purpose, start and end mileage, and destination. Use HMRC mileage rates—45p for the first 10,000 miles, then 25p. Add receipts for parking, tolls, and public transport to complete the claim trail.

Assets, AIA, and supporting schedules

Track equipment with a fixed asset register: purchase date, supplier, cost, serial number, and location. Use the Annual Investment Allowance (up to £1 million) where eligible. Keep invoices and warranties together to support claims and future disposals.