How Long to Keep Business Receipts for Taxes: US, UK, Canada & Australia
Last updated: September 2026
Keeping business receipts is one of those tasks that feels tedious until the day you need them — an audit, a loan application, or a tax dispute. Then suddenly, every scrap of paper (or pixel) matters. This guide explains exactly how long you need to hold onto receipts in the US, UK, Canada, and Australia, when you can safely destroy them, and why going digital is not just acceptable but often better.
Quick answer: Most businesses should keep receipts for at least 3 to 6 years, depending on the country. In the US, the general IRS rule is 3 years from filing; in the UK, self-employed individuals keep records for 5 years after the 31 January deadline and limited companies for 6 years; in Canada, the CRA requires 6 years; and in Australia, the ATO requires 5 years. Keep records longer for payroll, assets, late filings, compliance checks, bad debt claims, or missing or fraudulent returns.
This article is general information, not tax or legal advice. Check with your local tax authority or a qualified accountant for guidance specific to your situation.
Table of Contents
- Receipt retention periods by country
- United States: IRS rules
- United Kingdom: HMRC rules
- Canada: CRA rules
- Australia: ATO rules
- When to keep receipts longer
- What receipts to keep
- Digital vs paper receipts
- A simple receipt storage system
- What if you lost receipts?
- FAQ
- Key takeaways
Retention Periods Compared by Country
| Country | Business type | Standard retention | Extended situations | Authority |
|---|---|---|---|---|
| United States | All businesses | 3 years from filing date | 6 years (omitted income >25%), 7 years (bad debt/securities loss), 4 years (employment tax), indefinitely (no return or fraudulent return) | IRS |
| United Kingdom | Self-employed / partnerships | 5 years after the 31 January Self Assessment deadline | 15 months after submission (if filed 4+ years late); longer if buying/selling assets | HMRC |
| United Kingdom | Limited companies | 6 years from end of last company financial year | Longer for multi-period transactions, long-lived assets, late Company Tax Return, or HMRC compliance check | GOV.UK |
| Canada | All businesses | 6 years from end of the tax year | Some records may need to be kept longer in special circumstances — check CRA guidance before destroying | CRA |
| Australia | All businesses | 5 years from record creation or transaction date (whichever is later) | Longer for FBT records, super contributions, and records covering a period of review for an assessment | ATO |
How Long to Keep Business Receipts in the US: IRS Rules
The IRS does not have a single rule that says “keep all receipts for X years.” Instead, the retention period depends on the period of limitations — the window during which you can amend your return or the IRS can assess additional tax.
Standard retention periods
According to the IRS recordkeeping guidance, here is how long to keep records based on your situation:
| Situation | Keep records for |
|---|---|
| General rule (most taxpayers) | 3 years from the date you filed your return |
| You file a claim for credit or refund after filing | 3 years from filing date, or 2 years from the date you paid the tax, whichever is later |
| You omit income that is more than 25% of your gross income | 6 years |
| You file a claim for loss from worthless securities or bad debt | 7 years |
| You do not file a return | Indefinitely |
| You file a fraudulent return | Indefinitely |
| Employment tax records | 4 years after the tax becomes due or is paid, whichever is later |
Returns filed before the due date are treated as filed on the due date. The clock starts then, not from the day you actually submitted.
Property records
If you own business property like equipment, vehicles, real estate, keep records related to that property until the period of limitations expires for the year you dispose of the property. This applies to depreciation, amortization, and gain/loss calculations. If you received property in a nontaxable exchange, keep records for both the old and new property until the limitations period expires for the year you dispose of the new property.
The $75 receipt rule explained
One of the most misunderstood IRS rules is the $75 documentary evidence threshold. IRS Revenue Ruling 2003-106 summarizes the Section 274 documentary-evidence rule: the IRS requires documentary evidence, a receipt, paid bill, or similar proof for:
- Any expenditure for lodging while traveling away from home — regardless of amount
- Any other travel, meal, gift, or listed-property expense of $75 or more
- Transportation charges of $75 or more, unless a receipt is not readily available
For expenses under $75 (other than lodging), you do not need the paper receipt itself. However, you must still record the amount, date, place, and business purpose of the expense. No receipt does not mean no record — the IRS still expects you to substantiate every business expense regardless of dollar amount.
The $75 documentary-evidence exception is a Section 274 rule that applies to travel, meals, gifts, and listed property. Other business expenses, such as rent, supplies, advertising, and contractor payments still need adequate records under general IRS recordkeeping rules, regardless of dollar amount.
Are digital receipts accepted by the IRS?
Yes. The IRS has accepted digital and scanned receipts as valid records since 1997 under Revenue Procedure 97-22. According to IRS Publication 583, electronic records carry the same legal weight as paper originals when the electronic storage system meets these requirements:
- Accurate and complete transfer — the digital copy must faithfully reproduce the original, including all details
- Legible and readable — all text must be readable on screen and in print, including signatures
- Retrievable — you must be able to locate, retrieve, and reproduce any record on demand
- Secure — the system must include controls to prevent unauthorized creation, alteration, or deletion of records
Once your electronic storage system has been tested and confirmed to meet these requirements, you can legally destroy the paper originals. A phone photo, a flatbed scan, an emailed PDF, or an app-captured receipt all qualify, what matters is the result, not the device.
Note: even if the IRS accepts your digital copy, other parties such as insurance companies or creditors may require original paper documents. Check with them before shredding.
How Long to Keep Business Receipts in the UK: HMRC Rules
The UK has two different retention periods depending on your business structure.
Self-employed individuals and partnerships
For self-employed individuals and partnerships, HMRC requires you to keep records for at least 5 years after the 31 January submission deadline of the relevant tax year.
For example, if you filed your 2022–23 tax return online by 31 January 2024, you must keep your records until at least the end of January 2029.
Extended situations:
- If you send your tax return more than 4 years after the deadline, you must keep records for 15 months after you send it
- If you are buying or selling business assets, you may need to keep records longer
- HMRC may check your records to ensure you are paying the correct amount of tax
Limited companies
For limited companies, the rules are stricter. According to GOV.UK, you must keep accounting records for 6 years from the end of the last company financial year they relate to.
Records must be kept longer if:
- They show a transaction that covers more than one of the company’s accounting periods
- The company has bought something it expects to last more than 6 years, such as equipment or machinery
- The company sent its Company Tax Return late
- HMRC has started a compliance check into the company’s Company Tax Return
Digital records in the UK
UK businesses can keep records digitally where they meet HMRC’s requirements, including Making Tax Digital rules for eligible businesses. Check HMRC guidance before destroying paper originals, as some situations may still require physical documents. This is especially important for thermal paper receipts (from shops, restaurants, and parking machines) which fade within 6–18 months, well within the 5-year retention window for self-employed individuals and the 6-year window for limited companies.
How Long to Keep Business Receipts in Canada: CRA Rules
The Canada Revenue Agency requires businesses to keep all required records and supporting documents for 6 years from the end of the last tax year they relate to.
The tax year is the fiscal period for corporations, the calendar year for individuals, and varies for trusts.
Key rules
- Records must be kept at your place of business or residence in Canada, unless the CRA gives written permission to keep them elsewhere
- Records kept outside of Canada but accessed electronically are not considered records kept in Canada
- The CRA may accept digital copies if they are true copies, available in an electronic format readable by CRA software, and show enough detail to support the returns filed
Some records may need to be kept longer in special circumstances. Before destroying any business records, check the CRA’s record retention guidance or consult a tax professional.
How Long to Keep Business Receipts in Australia: ATO Rules
The Australian Taxation Office requires businesses to keep most records for 5 years.
The 5-year period generally starts from when you prepared or obtained the record, or completed the transactions it relates to whichever is later.
Extended situations
The start date and duration vary depending on the record type:
- Fringe Benefits Tax (FBT) records: 5 years from the date you lodge your FBT return
- Super contribution records: 5 years from the date of the contribution
- Super fund choice records: 5 years from employee engagement or when a fund choice is made
Some records need to be kept longer than 5 years, particularly if they cover the period of review for an assessment that uses information from those records. Check the ATO’s record-keeping guidance for your specific situation.
When to Keep Receipts Longer Than the Standard Period
Across all four countries, certain situations extend the retention window beyond the baseline:
| Situation | Countries affected | Extended period |
|---|---|---|
| Omitted income (>25% of gross income) | US | 6 years |
| Bad debt or worthless securities claim | US | 7 years |
| No return filed or fraudulent return | US | Indefinitely |
| Late tax return (4+ years after deadline) | UK (self-employed) | 15 months after submission |
| HMRC compliance check | UK (limited companies) | Until check concludes |
| Long-lived assets (equipment, machinery) | UK (limited companies) | Beyond 6 years |
| Records covering a period of review for an assessment | Australia | Beyond 5 years |
| Property records (until disposal) | US, all | Until period of limitations expires for year of disposal |
What Receipts Should You Keep?
While retention rules vary by country, the types of receipts you should hold onto are broadly the same:
Always keep
- Sales receipts — proof of income for every transaction
- Expense receipts — especially for deductible business expenses
- Asset purchase receipts — equipment, vehicles, property (keep until you dispose of the asset)
- Travel and meal receipts — lodging always requires documentary evidence; travel, meal, and gift expenses over $75 (US) need a receipt under IRS Section 274 rules
- Payroll and employment tax records — separate, longer retention periods apply (4 years in the US)
- Rent receipts — for both paying and receiving rent. See our guide on how to fill out a rent receipt for a step-by-step walkthrough
- Donation receipts — for tax-deductible charitable contributions
You can probably skip the paper (but still record)
- Small expenses under $75 (US) — you still need to log the amount, date, place, and purpose
- Transportation charges where a receipt is not readily available
Practical tip
When in doubt, keep it. The cost of storing a digital receipt is near zero. The cost of not having one during an audit can be significant. For more on this topic, see our guide on what happens if you get audited and don’t have receipts.
Digital vs Paper Receipts: Which Should You Keep?
The short answer: digital is fine, and often better provided your storage system meets the requirements.
The IRS has accepted digital receipts since 1997 under Revenue Procedure 97-22. The CRA accepts electronic copies if they are true copies in a readable format. UK businesses can keep records digitally where they meet HMRC’s requirements, and the ATO accepts digital records as part of its general record-keeping framework. Check with your local tax authority for specific requirements before destroying paper originals.
Why digital is better
- Paper receipts fade — thermal paper receipts from gas stations, restaurants, and parking machines become illegible within months
- Digital receipts are searchable — you can find a specific receipt in seconds instead of digging through a shoebox
- They are backed up — cloud storage means a fire or flood does not destroy your records
- They save space — years of receipts fit in a folder, not a filing cabinet
How to store digital receipts properly
- Scan or photograph every receipt the day you receive it — before the ink fades
- Name files consistently — use a format like
YYYY-MM-DD_Vendor_Amount.pdf - Store in cloud backup — at minimum, use Google Drive, Dropbox, or similar
- Organize by tax year — create a folder structure that mirrors your tax return categories
- Verify legibility before shredding paper — zoom in and confirm you can read every field, including the vendor name, date, items, and total
If you need to create clean, professional receipts for your business in the first place, you can generate one for free in under a minute, no signup required. For a complete walkthrough, see our guide on how to make a receipt.
A Simple Receipt Retention System for Small Businesses
If you are starting from scratch, here is a system that works:
Monthly routine (15 minutes)
- Photograph or scan every receipt as it comes in
- Store each one in a cloud folder organized by month
- Log the amount, date, vendor, and business purpose in a simple spreadsheet
Quarterly routine (1 hour)
- Reconcile your receipt log against your bank and credit card statements
- File any missing receipts
- Back up your digital records to a second location
Yearly routine (2 hours)
- Confirm all receipts for the tax year are organized and complete
- Archive the folder — do not delete until the retention period expires
- Check whether any records from the oldest year can now be safely destroyed
- Keep copies of your filed tax returns indefinitely — they help with future returns and amended filings
Freelancers and self-employed workers have specific receipt needs. See our guide on how to create a receipt for freelance work for more.
What Happens If You Do Not Have Receipts?
Without receipts, you risk losing deductions during an audit. The IRS, HMRC, and other tax authorities can disallow expenses you cannot substantiate, which means owing additional tax plus penalties and interest.
However, all is not lost if you are missing some receipts. You may be able to reconstruct records using:
- Bank and credit card statements — these show the amount and date but not the business purpose
- Email confirmations — for online purchases and digital services
- Loyalty program records — some stores can look up transactions by account
- Calendar entries — to establish the business purpose and who was present
- Vendor invoices — if you have an invoice but not the payment receipt, the invoice plus a bank statement showing payment can suffice. Not sure whether you need a receipt or an invoice? See our guide on receipt vs invoice for more.
For more on this topic, see our guide on what happens if you get audited and don’t have receipts.
Frequently Asked Questions
Can I throw away receipts after I have scanned them?
In the US, yes, once your electronic storage system meets the requirements of Revenue Procedure 97-22, you can destroy the paper originals. The CRA also accepts electronic copies under certain conditions. For UK and Australian businesses, check HMRC guidance and ATO guidance before destroying originals. Other parties such as insurance companies or creditors may also require paper documents.
Do I need to keep receipts for expenses under $75?
Under IRS rules, you do not need documentary evidence (a receipt) for travel, meal, gift, or listed-property expenses under $75 with one exception: lodging always requires a receipt regardless of amount. However, you must still record the amount, date, place, and business purpose of every expense. The $75 threshold is a Section 274 rule; other business expenses still need adequate records under general IRS recordkeeping rules.
How long should I keep tax returns themselves?
Keep copies of your filed tax returns indefinitely. They are useful for preparing future returns, filing amended returns, and providing context during an audit. They take up almost no space digitally.
Are email receipts valid for tax purposes?
Yes. The IRS accepts email receipts and PDF downloads under Revenue Procedure 97-22. In some ways digital receipts are better than paper because they start out clean and never fade. Check with your local tax authority for any additional requirements.
What if I have not been keeping receipts at all?
Start now. Begin photographing and logging every business expense from today forward. For past expenses, gather what you can from bank statements, email confirmations, and vendor invoices. The sooner you start, the more complete your records will be when you need them. For more on this topic, see our guide on what happens if you get audited and don’t have receipts.
Can I use a receipt maker to create receipts for past transactions?
If you need to recreate a receipt for a legitimate past transaction, for example, to replace a lost receipt for record-keeping purposes, you can use a receipt generator to create a professional replacement. Just ensure the details accurately reflect the original transaction. Never create receipts for transactions that did not occur.
Key Takeaways
- US: Keep receipts for 3 years minimum (6 if you underreported income, 7 for bad debt, indefinitely if you did not file)
- UK (self-employed): Keep for 5 years after the 31 January deadline
- UK (limited companies): Keep for 6 years from the end of the last financial year
- Canada: Keep for 6 years from the end of the tax year
- Australia: Keep for 5 years from when the record was created
- Digital receipts are accepted by the IRS (since Revenue Procedure 97-22), HMRC, CRA, and ATO — scan everything, store it in the cloud, and verify legibility before shredding paper
- When in doubt, keep it — the cost of storage is near zero; the cost of missing records during an audit is not
Need to create a professional receipt for your business? Generate one for free — 130+ templates, no signup, download as PDF, PNG, or JPEG, and share directly to WhatsApp. You can also send receipts to customers instantly with our guide on sending receipts via WhatsApp.