Receipt Scanning & Digital Records

Updated November 2025

Keeping physical receipts and invoices is a pain. They pile up, get lost, fade over time, and take up space. The good news is HMRC accepts digital records and scanned receipts as valid proof of expenses—you don't need to keep physical receipts anymore. Receipt scanning and digital record keeping let you go paperless, automatically extract data from receipts, and make finding records when HMRC asks for them way easier.

Here's what you need to know:

  • HMRC accepts digital records and scanned receipts as valid proof of expenses — Digital records are legally acceptable for tax purposes (gov.uk self-employed records), so you can scan receipts and throw away the physical copies (or store them elsewhere if you prefer)
  • Businesses must keep records for at least 6 years (5 years for VAT records) — Digital storage makes this easier and more secure than physical filing (gov.uk keeping records)
  • Receipt scanning software can automatically extract data from receipts (date, amount, vendor, category), reducing manual data entry and errors in bookkeeping
  • Digital record keeping reduces storage space, improves organisation, and makes it easier to find receipts when HMRC requests them—search by date, amount, vendor, or category instead of digging through filing cabinets

The problem is most small businesses are still using shoeboxes, folders, or filing cabinets. That means receipts get lost, data entry is manual and error-prone, and finding a specific receipt when HMRC asks for it is a nightmare. Going digital with receipt scanning solves all of that.

We handle receipt scanning and digital record keeping specifically for small businesses: receipt scanning setup, digital storage system, automatic data extraction, and HMRC-compliant record keeping. Whether you're a small business in Medway wanting to go paperless, a growing company in Maidstone needing better organisation, or a business in Canterbury tired of lost receipts, we'll set you up with a digital system that saves time and keeps everything organised. No more lost receipts, no more manual data entry—just clean digital records that HMRC accepts and that make your life easier.

What this helps you do (fast)

  • Go paperless — Scan receipts and invoices, store them digitally, throw away (or archive) physical copies. No more filing cabinets or shoeboxes full of receipts.
  • Automatic data extraction — Receipt scanning software automatically extracts date, amount, vendor, and category from receipts, so you don't have to type it all in manually.
  • Easy search and retrieval — Find receipts instantly by searching date, amount, vendor, category, or any other field. No more digging through filing cabinets when HMRC requests a receipt.
  • HMRC-compliant record keeping — Digital records are legally acceptable for tax purposes, and digital storage makes it easier to keep records for the required 6 years (5 years for VAT).
  • Reduce manual data entry — Automatic data extraction means less typing, fewer errors, and faster bookkeeping. Receipts flow directly into your accounting system.
  • Better organisation — Digital filing is organised automatically. Receipts are categorised, dated, and stored securely in the cloud or on your system.

How it works

Step-by-step process for receipt scanning and digital record keeping:

  1. Discovery call — We chat about your business: how many receipts you get (per week, month), what your current filing system looks like (shoebox, folders, filing cabinet), whether you're using accounting software, what your biggest pain points are (lost receipts, manual data entry, finding receipts), and whether you want cloud storage or local storage.
  2. Receipt scanning system setup — We set up a receipt scanning system that works for you:
    • Mobile app scanning — Scan receipts on your phone using a receipt scanning app (like Receipt Bank, Expensify, or built-in tools in accounting software)
    • Desktop scanning — Scan receipts using a scanner or multi-function printer if you prefer desktop scanning
    • Email forwarding — Forward receipt emails to a dedicated email address that automatically processes and stores receipts
    • Integration with accounting software — Connect receipt scanning to your accounting software (Xero, QuickBooks, etc.) so receipts flow directly into your books
  3. Automatic data extraction — We configure automatic data extraction so receipts are processed automatically:
    • Date extraction — Automatically reads the date from receipts
    • Amount extraction — Automatically reads the total amount
    • Vendor extraction — Automatically identifies the vendor/merchant
    • Category extraction — Automatically categorises expenses (meals, travel, supplies, etc.) based on vendor or keywords
    • Currency conversion — If you have foreign receipts, automatic currency conversion to GBP
    This means you scan the receipt, and the software does the rest—no manual typing needed.
  4. Digital storage setup — We set up secure digital storage for your receipts:
    • Cloud storage — Store receipts securely in the cloud (encrypted, backed up, accessible from anywhere)
    • Local storage — Store receipts on your computer or network drive if you prefer local storage
    • Backup system — Automatic backups ensure receipts aren't lost if something goes wrong
    • Organisation system — Receipts are automatically organised by date, vendor, category, so they're easy to find
  5. HMRC compliance setup — We ensure your digital record keeping meets HMRC requirements:
    • File naming conventions — Receipts are named consistently so they're easy to find
    • Metadata storage — Key information (date, amount, vendor, category) is stored as metadata for easy searching
    • Retention period tracking — System tracks how long receipts have been stored, so you know when it's safe to delete old records (after 6 years for tax records, 5 years for VAT records)
    • Access controls — Secure access controls ensure only authorised people can view or modify receipts
  6. Training and handover — We train you on how to use your receipt scanning system:
    • How to scan receipts — Using mobile app, desktop scanner, or email forwarding
    • How to review extracted data — Checking that automatic data extraction is correct (and fixing it if needed)
    • How to search for receipts — Finding specific receipts when you need them
    • How to integrate with bookkeeping — Making sure receipts flow into your accounting system correctly

What receipt scanning and digital records include:

  • Receipt scanning system setup (mobile app, desktop scanner, or email forwarding)
  • Automatic data extraction (date, amount, vendor, category)
  • Digital storage setup (cloud or local, with backups)
  • Integration with accounting software (if you're using it)
  • HMRC-compliant record keeping
  • Training on how to use the system

Common receipt scanning methods:

  • Mobile app — Scan receipts using your phone camera (most convenient, works anywhere)
  • Desktop scanner — Scan receipts using a scanner or multi-function printer (good for bulk scanning)
  • Email forwarding — Forward receipt emails to a dedicated email address (works for digital receipts)
  • Photo upload — Upload photos of receipts taken with any camera (flexible option)

We work with whatever method suits you. Mobile app scanning is usually the most convenient (scan receipts as you get them, no need to keep physical copies), but desktop scanning works well if you prefer to batch process receipts. Email forwarding is great if you get lots of digital receipts via email.

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Fixed fees • HMRC compliant • Based in Kent & Dubai

Costs & timelines

Pricing factors:

  • Receipt volume — More receipts mean more scanning and storage, but most systems have unlimited storage
  • Scanning method — Mobile app scanning is usually included in software subscriptions, desktop scanning might need scanner hardware (if you don't already have one)
  • Accounting software integration — If you want receipts to flow directly into accounting software, that's usually included in software subscriptions
  • Storage method — Cloud storage usually has a monthly subscription, local storage is one-off setup

Commonly reported ranges by local providers:

  • Receipt scanning software subscription: £10–£30/month (covers scanning, data extraction, cloud storage, accounting software integration)
  • Setup and training: £150–£300 (one-off setup cost for configuring the system and training you to use it)

Why receipt scanning costs what it does:

  • Software subscriptions cover scanning, data extraction, cloud storage, and accounting software integration
  • Setup includes system configuration, integration with your accounting software, and training
  • Ongoing subscription ensures automatic updates, backups, and support

Timeline: Setup usually takes about 2–3 hours (system configuration, integration, training). Once set up, scanning receipts takes seconds—just snap a photo with your phone, and the software does the rest.

Ongoing costs: Most receipt scanning software is subscription-based (£10–£30/month). This covers unlimited scanning, automatic data extraction, cloud storage, and accounting software integration. If you prefer local storage without cloud subscriptions, setup costs might be higher (one-off), but you manage storage yourself.

No hidden fees. Setup price includes system configuration, integration, and training. Software subscription is separate (paid directly to software provider). We'll help you choose the right software for your needs.

Kent (UK) focus

We work with small businesses across Kent: businesses in Medway wanting to go paperless, companies in Maidstone needing better organisation, and businesses in Canterbury tired of lost receipts.

Kent businesses face the same record-keeping requirements as everyone else—keep records for 6 years (5 years for VAT), be able to produce receipts when HMRC asks for them, maintain accurate records for tax returns. The difference is when you use digital record keeping with receipt scanning, meeting these requirements is way easier. No more filing cabinets, no more lost receipts, no more manual data entry—just scan, store, and search.

Common Kent business scenarios:

  • Service businesses — Consultants, agencies, professional services getting receipts for travel, meals, supplies, wanting to go paperless
  • Retail businesses — Shops, online stores getting receipts for inventory, supplies, utilities, wanting better organisation
  • Trades businesses — Builders, plumbers, electricians getting receipts for materials, tools, vehicles, wanting easier record keeping
  • Home-based businesses — Small businesses operating from home wanting to reduce clutter and improve organisation

Kent business market context:

  • Many Kent businesses are small to medium-sized, needing cost-effective record-keeping solutions
  • Digital record keeping is increasingly popular as businesses want to go paperless and improve efficiency
  • HMRC acceptance of digital records makes it easier for Kent businesses to modernise their record keeping

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent businesses are dealing with. Lost receipts, manual data entry, filing cabinets full of paper—receipt scanning solves all of that. We'll set you up with a digital system that saves time and keeps everything organised.

FAQs

Receipt Scanning & Digital Records - Frequently Asked Questions

Common questions about receipt scanning and digital record keeping for small businesses

No, not if you scan them properly. HMRC accepts digital records and scanned receipts as valid proof of expenses, so you can scan receipts and throw away (or archive) physical copies. The key is making sure scanned receipts are clear, readable, and stored securely. Digital records are legally acceptable for tax purposes, and digital storage makes it easier to keep records for the required 6 years.
Yes, definitely. HMRC accepts scanned receipts as valid proof of expenses. The scanned receipts must be clear, readable, and stored securely. You should also keep them organised (by date, vendor, category) so you can find them when HMRC requests them. Digital records are legally acceptable, and many businesses find digital storage easier than physical filing cabinets.
You need to keep receipts for at least 6 years for tax records (5 years for VAT records). HMRC can ask to see receipts at any time during this period, so it's worth keeping them organised and accessible. Digital storage makes this easier—you can store receipts in the cloud or on your computer, and they won't fade or get lost like physical receipts.
Digital record keeping means storing receipts, invoices, and other business documents digitally (as PDFs or images) instead of keeping physical copies. You scan receipts using a phone app or scanner, store them digitally (in the cloud or on your computer), and use software to automatically extract data (date, amount, vendor, category). This makes record keeping easier, more organised, and HMRC-compliant.
Yes, you should scan all business receipts—any receipt that's a business expense should be scanned and stored digitally. That includes receipts for travel, meals, supplies, utilities, rent, and any other business expenses. The good news is receipt scanning is quick (just snap a photo with your phone), and automatic data extraction means you don't have to type everything in manually. Once you get into the habit, scanning receipts takes seconds.
Commonly reported ranges from local providers are £10–£30/month for receipt scanning software subscriptions (covers scanning, data extraction, cloud storage, accounting software integration). Setup and training might be £150–£300 (one-off). The software subscription ensures automatic updates, backups, and support. Most businesses find the time saved (no manual data entry, easy search) makes it worth the cost.

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Need help setting up receipt scanning?

Go paperless, reduce manual data entry, stay HMRC-compliant. We'll set up a digital record keeping system that saves time and keeps everything organised.

Fixed fees • HMRC compliant • Based in Kent & Dubai

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