Can Digital Receipts Be Used for HMRC Tax Records?

Untitled-design-10

Written By: eyos Marketing | Last Updated: November 2022


Today’s businesses are using digital receipts in a wide variety of ways, especially for expenses and invoices. 

A big reason for the growing popularity of digital receipts is that they provide an easier and more efficient way of satisfying tax requirements in many countries around the world. 

Businesses are choosing digital receipts over their less environmentally friendly paper counterparts for security reasons too. Since digital receipts can’t be lost, stolen or even torn, they offer a range of benefits for tax purposes. 

Read on to find out more if digital receipts can be used for HMRC tax records.

Can digital receipts be used for HMRC?

Yes, in 2018, HMRC confirmed that digital copies of receipts for taxes could be stored to satisfy legal and taxation requirements. 

The requirements dictate that tax records be stored securely, allowing the original data to be kept intact. HMRC require businesses to: 

  • Keep at least 6 years of archived electronic documentation
  • All scanned receipts must be kept legible – for example, kept in a PDF format
  • Documents should be easily located if HMRC requires it

With smartphones and tablets becoming more advanced, businesses can convert physical receipts into high-quality images and then transform them into secure PDFs.

They can then be automated and stored using a cloud-based solution, making them easy to access when needed and very beneficial for businesses.

Benefits of digital receipts for taxes

There are many benefits of using digital receipts for tax purposes

Guaranteed compliance

Digital receipts can guarantee compliance with tax requirements, allowing businesses to create a complete trail for future audits. 

Doing this in preparation for valuation conversations can show that businesses have their act together and gives investors the confidence they’re on the right track.

Easier and more secure to store 

Digital receipts can be easily stored by dating and legally sealing them, then converting them into PDFs. 

This can help businesses keep them safely in storage by using encryption and allowing them to be retrieved whenever they’re needed. 

Lower storage costs and clutter

As receipts can be digitalized, storage costs will be dramatically reduced. Businesses can also avoid the hassle of paper receipts being printed or stored in files or folders. 

This can also mean less clutter and ensure businesses are reducing their environmental costs of paper receipts

Exceptions for digital receipt tax records

Any documents for tax purposes such as an end-of-year bank document that supports tax returns must be kept in their original format. 

Whether they are received in an electronic or paper copy format, they can’t be stored in a different form.

Although there is a slight exception, digital receipts still offer a range of benefits for tax compliance and are now increasingly popular for businesses wanting to be more efficient with their expense management.

Get advice on digital receipts today

Unlock the power of in-store data with eyos. Our software allows businesses all over the world to convert tax records into digital receipts. 

Connect to a platform of your choice with digital receipts, with huge amounts of valuable data at your fingertips – ready and waiting to be put to great use in your next marketing campaign. 

If you’d like to find out more about digital receipts and how they work, get in touch with our team. 

Additional Reading 

What Features Should Small Businesses Look for in Retail Software?

How Digital Receipts Can Improve the Customer Retail Experience

The Value of Digital Receipts for Small Businesses 

 

{“@context”:”https://schema.org”,”@type”:”FAQPage”,”mainEntity”:[{“@type”:”Question”,”name”:”Can digital receipts be used for HMRC?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”Yes, in 2018, HMRC confirmed that digital copies of receipts for taxes could be stored to satisfy legal and taxation requirements. “}},{“@type”:”Question”,”name”:”What are the benefits of digital receipts for taxes?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”* Guaranteed compliance\n* Easier and more secure to store \n* Lower storage costs and clutter”}},{“@type”:”Question”,”name”:”Are there exceptions for digital receipt tax records?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”Any documents for tax purposes such as an end-of-year bank document that supports tax returns must be kept in their original format. Whether they are received in an electronic or paper copy format, they can’t be stored in a different form.”}}]}