TTF Tackles the Money Monster Under Your Bed: Oops—I’ve Got Scraps, Lost Receipts & No System… What Would HMRC Say?

“I’m drowning in scraps of paper! I can't seem to get organised. I run a small online store, and my bookkeeping is in chaos—random scraps of paper, half-used receipt books, and some long-lost digital invoices.

Every time I think about an HMRC query, my heart sinks: If they asked, I could never find everything.

I’ve heard horror stories about fines and compliance checks. Do they really expect me to have neat files, legible receipts, and everything reconciled? I started googling, hoping there’s kindness at the end of the tunnel but would really appreciate some advice on this!"

Let's Break Down HMRC's Expectations

Firstly, that sinking feeling is completely normal—and even seasoned business owners face it. The good news? HMRC doesn’t expect laser‑perfect folders. What they do require is simple: accurate, complete, readable, and accessible records of your income and expenses

That means:

• All sales and income – from till rolls to bank payments

• All expenses – invoices, receipts, mileage logs

• VAT/PAYE records if applicable

• Records for at least five years after the filing deadline

You don’t need pristine folders—just the ability to locate what HMRC might ask for and explain any missing data.

Real World Reassurance

Take the recent case of Birmingham restaurateur Babar Saddiq. His business relied on till receipts, photocopied papers, even handwritten notes—and faced HMRC investigations accusing him of suppression and underreporting. Despite the chaos, the First Tier Tribunal concluded:

“The record keeping of the company appears to be chaotic... [but] not deliberate… more likely due to chaotic record keeping… the appeal was allowed.”

Although some claims were unreliable, HMRC’s case failed because they lacked concrete evidence — the mess did not equal intent. That’s a powerful reminder: chaos doesn’t mean guilt.

Final Thoughts

✅ What you can do right now

• Start organising today – sort receipts by month, grab digital copies

• Use simple tools – a spreadsheet or basic bookkeeping app suffices

• Reconstruct missing data – use bank statements, supplier quotes; mark such entries as “estimated” with explanations

• Document your process – notes explaining why a figure is provisional matter

• Keep everything for 5 years – your earliest deadline is 31 January plus five years

• Get professional help – a tax adviser can help structure your system and confidence in case of enquiry

✅ And remember...

HMRC does not demand a magazine-quality filing system—they want reliability and transparency. And as Babar Saddiq’s case proves, messy doesn’t mean fraudulent.

So take control today: digitise your scraps, set up a simple filing routine, note gaps, and consider working with a tax professional. That way, you’ll be prepared, compliant, and far less anxious—no matter what HMRC asks for.

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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