🧾 Receipts, Records & Reality: How Freelancers Actually Stay on HMRC’s Good Side

If your receipts still live in a wallet, a shoebox, or “somewhere on your phone”, you’re not alone. But when it comes to tax, lost receipts mean lost deductions, and HMRC won’t accept bank statements on their own.

The good news?
Modern tools make receipt-keeping quick, low-effort and mostly free.

This isn’t about more admin. It’s about doing it once and never worrying again.

Why receipts still matter

For business expenses, HMRC expects:

• A receipt or invoice

• Evidence that the cost was business-related

• Records that are accurate and accessible

If you can’t produce a receipt, HMRC can disallow the expense even if the payment shows on your bank statement.

The golden rule

If you buy it for the business, photograph or upload the receipt immediately.

That one habit saves hours later and protects you if HMRC ever ask questions.

📲 The Freelancer Receipt Quiz

Find your easiest system in under a minute

1️⃣ How many receipts do you have each month?

A) Under 20
B) 20–80
C) 80+ or VAT registered

2️⃣ What do you use already?

A) Just my business bank account
B) Accounting software (FreeAgent, Xero, etc.)
C) A mix of tools and spreadsheets

3️⃣ How much admin do you tolerate?

A) As little as possible
B) Some, if it keeps things tidy
C) I’d rather automate it

🧠 Your results

🔹 Mostly A’s - Keep it simple

Use your bank’s receipt tools:

• NatWest, Mettle or Coconut
  Snap the receipt and attach it to the transaction. Free, fast, and effective.

🔹 Mostly B’s - Keep it organised

Use accounting software with receipt capture:

• FreeAgent Smart Capture (10 uploads/month included)

• Wave Accounting (free)

Everything stays linked to your accounts and ready for tax time.

🔹 Mostly C’s - Automate it

Use accounting software + capture tools:

• Xero + Hubdoc / AutoEntry / Dext
  Best if you’re VAT registered or dealing with lots of invoices.

💸 What does it cost?

• Bank receipt tools: Free

• FreeAgent receipt capture: Included (10/month)

• Xero + automation tools: ~£25–£50/month

• Wave Accounting: Free

Final thought

Good bookkeeping isn’t about perfection; it’s about consistency.

Pick a system that fits how you work, capture receipts as you go, and your tax returns (and stress levels) get much easier.