Most tax authorities recommend keeping business receipts for at least 3 to 7 years, depending on the country and the type of expense. The US IRS generally recommends 3 years (longer in specific cases), the UK’s HMRC recommends 5–6 years, the Canadian CRA recommends 6 years, and the Australian ATO recommends 5 years. Keep receipts related to large asset purchases even longer, for as long as you own the asset plus the standard retention period.
This is general guidance, not tax advice — confirm exact retention periods with your local tax authority or accountant, since rules change and vary by business structure.
Retention Periods by Country
| Country | General Guidance |
|---|---|
| United States | 3 years from filing (up to 6–7 years for underreported income or bad debt claims) |
| United Kingdom | 5 years after the 31 January submission deadline (self-employed); 6 years for limited companies |
| Canada | 6 years from the end of the tax year they relate to |
| Australia | 5 years from when the record was prepared, obtained, or the transaction completed |
Which Receipts Matter Most to Keep
- Large purchases and business assets — equipment, vehicles, property improvements. Keep these for as long as you own the asset, plus the standard retention window after you dispose of it.
- Anything claimed as a tax deduction — these are the first thing an auditor will ask to see.
- Rent and lease payments — especially relevant if you’re claiming a home office or business premises deduction.
- Charitable donations — required to substantiate any deduction claimed.
How to Store Receipts So You Can Actually Find Them Later
- Digitize everything. A photo or scanned PDF of a paper receipt is accepted by virtually every tax authority — paper fades and gets lost, digital files don’t.
- Organize by tax year and category. A simple folder structure (Year → Category) makes retrieval fast if you’re ever asked to produce records.
- Back up in at least two places. Cloud storage plus a local backup protects against a single point of failure.
- Use consistent receipt numbering. Makes cross-referencing receipts against your bookkeeping software far easier — see our guide on receipt numbering systems.
Whichever category applies to you, generating a complete receipt in the first place is the best starting point — see our rent, donation and other receipt templates.
Quick Retention Table
| Country | General rule | Official source |
|---|---|---|
| United States | 3 years in most cases; 6 years if income was underreported by more than 25%; 7 years for bad-debt or worthless-securities claims; 4 years for employment tax records | IRS — How long should I keep records? |
| United Kingdom (self-employed) | At least 5 years after the 31 January Self Assessment deadline for the tax year | GOV.UK |
| United Kingdom (VAT-registered) | At least 6 years for VAT records | HMRC VAT Notice 700/21 |
| Canada | 6 years from the end of the last tax year the records relate to | Canada Revenue Agency |
| Australia | Most records for 5 years | Australian Taxation Office |
Links to each official page are in the sources box below this article.
Worked Example: When Can You Throw It Away?
A US sole proprietor buys a laptop on 15 March 2025 and files their 2025 return on 10 April 2026. Under the general 3-year rule, the receipt should be kept until at least April 2029. But because the laptop is business property that is depreciated, the receipt should be kept until 3 years after the return for the year the laptop is sold or thrown away — which could be much later. The same logic applies in other countries: records for assets you still own stay relevant until you dispose of them.
Records to Keep Longer
- Assets — equipment, vehicles and property: keep purchase receipts for as long as you own the asset, plus the retention period after you sell or dispose of it.
- Payroll and employment tax records — the IRS asks for at least 4 years.
- Anything under dispute or review — keep everything until the matter is closed.
- Other obligations — insurers, lenders or company law can require longer periods than the tax rules.
A Simple Digital Filing System
- Create one folder per tax year, with a subfolder per month.
- Name each file date-supplier-amount, for example
2026-03-15_laptop-store_1200.pdf. - Photograph paper receipts the same day — thermal paper fades.
- Keep a backup in a second place (cloud storage or an external drive).
- For receipts you issue, save a PDF copy with the receipt number in the file name.
Do I need to keep paper receipts, or is a digital copy enough?
A digital copy is generally accepted in the US, UK, Canada and Australia, as long as it’s a complete, legible reproduction of the original.
What if I lose a receipt for a past business expense?
You may still be able to claim the expense using other evidence (bank/card statements, contracts), but a receipt is the strongest form of documentation. See our guide on what happens during an audit without receipts.
Should I keep receipts even for expenses I’m not sure are deductible?
Yes — it’s far easier to discard a receipt later than to reconstruct one after the fact. When in doubt, keep it.
Does the retention period change if I’m self-employed vs. running a company?
It can — company/corporate retention periods are sometimes longer than sole-trader/self-employed ones in the same country. Check your specific business structure’s requirement.
Can I shred paper receipts after scanning them?
In most cases tax authorities accept complete, legible digital copies instead of paper originals, but check the rules for your country and business type first, and make sure your scans are backed up before destroying anything.