Recording expenses as a sole trader
If you are self-employed, the record-keeping requirement is simple in principle and tedious in practice. The trick is capturing the right four fields at the moment of spending.
The minimum viable record
For each expense: date, supplier, amount, and what it was for. That last one is what people forget, and it is the one an inspector asks about. A category is enough — you do not need a paragraph.
Keep the evidence
A receipt or invoice supports the claim. Photograph it immediately; paper fades and gets lost. Store the images somewhere you control, named by date, so you can find one two years later.
Separate business and personal
The single biggest source of mess is a personal card paying for business things. Use a separate account or card for the business, even as a sole trader. It halves the reconciliation work at year end.
Monthly, not annual
Thirty minutes a month beats a lost weekend in January. Put the CSV somewhere you can find it, and reconcile it against the bank statement for that month while you still remember what the purchases were.
Common questions
How long do I keep records?
In the UK, HMRC generally expects records kept for at least five years after the submission deadline. Check the current rules or ask your accountant.
Can I claim a proportion of home costs?
Often yes, using flat-rate or proportional methods. This is accountant territory — do not guess.
Do I need accounting software?
Not to start. A spreadsheet and a folder of receipt images will carry you a long way; software becomes worth it when volume or VAT registration arrives.