Receipt scanning apps: how they work and what HMRC expects

Last checked 19 October 2026

Faded till receipts in the glovebox, a carrier bag of paperwork at the end of the year: most sole traders know the feeling. Receipt scanning apps promise to fix that by capturing each receipt as you get it.

This guide explains how they work and what HMRC’s guidance says about the records you need to keep. We don’t name or rank apps. Features and prices change, so check each product’s current details yourself.

How receipt scanning works

Most receipt scanning works in a similar way:

1. You take a photo of the receipt with your phone, or forward an emailed receipt or invoice to the app.
2. The app reads the text and picks out details such as the supplier, the date, the total and sometimes any VAT shown.
3. It suggests a category for the expense.
4. You check the details, correct anything it got wrong and save it.
5. The image is stored alongside the record, so you can find it later.

Some apps match each receipt to the payment in your bank feed, so you can see which transactions have proof attached. Our guide to bank feeds explains how those work.

Receipt scanning is often a feature of bookkeeping software rather than a separate app. HMRC’s guide to choosing the right software for Making Tax Digital lists scanning receipts and invoices as one way software can create digital records, alongside linking to your bank account and entering income and expenses manually.

What GOV.UK says about records and proof

GOV.UK’s guide to business records if you’re self-employed says you’ll need to keep records of all business expenses, and that your records must be accurate. Types of proof it lists include:

• all receipts for goods and stock
• bank statements and chequebook stubs
• sales invoices, till rolls and bank slips

It says you must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year, and that HMRC may check them.

It also covers what happens if records are lost, stolen or destroyed: if you can’t replace them, you must do your best to provide figures, and tell HMRC when you file your tax return if you’re using estimated or provisional figures. A scanned copy stored safely is one way to reduce that risk.

What Making Tax Digital adds

If you’ll be using Making Tax Digital for Income Tax, HMRC’s guidance on creating digital records says a digital record is a record of your income or expense created and stored using software that works with MTD.

For each record, it says you’ll need the:

• amount
• date when the income was received or the expense incurred
• category, using the same categories as Self Assessment

It also says you must continue keeping records like you normally do for Self Assessment, and that you still need to keep original records or supporting documents (or copies of them) that you used to prepare your tax return.

On timing, HMRC says you should create digital records as close to the date of the transaction as possible, and correct any error or missing information as soon as possible. Scanning a receipt when you get it fits that well.

Our guide to checking whether an app is MTD software explains how to use HMRC’s own software finder.

Check what the app reads

Scanning saves typing, but it doesn’t take away your responsibility. HMRC’s guidance says it’s your responsibility to check your digital records are accurate before you send a quarterly update.

Common things to check:

• The total. Apps can misread a smudged or crumpled receipt.
• The date. Some receipts print dates in formats that confuse software.
• The category. A suggested category is a guess. Make sure it’s right for your business.
• Mixed purchases. If one receipt covers business and personal items, only the business part is an allowable expense. GOV.UK says that if you use something for both business and personal reasons, you can only claim allowable expenses for the business costs. Our guide to allowable expenses explains more.
• Duplicates. Photographing a receipt and forwarding the emailed version can create two records.

Can I throw away the paper?

HMRC’s MTD guidance says you need to keep original records or supporting documents, or copies of them. Whether a scan is enough for a particular record depends on your situation. If you’re unsure, check HMRC’s guidance or ask an accountant before binning originals.

If you do rely on scans, make sure they’re readable, show the whole receipt, and are backed up. Thermal till receipts can fade, so it’s worth scanning them early.

Questions to ask before choosing an app

• Does it work with your bookkeeping software, or is it part of it?
• Is that software on HMRC’s list of MTD-compatible software, if you’ll need it?
• Can you export your records and images if you change software?
• Where is your data stored, and how is your account protected?
• How long will it keep your images, and what happens if you stop paying?

Frequently asked questions

Do I need a receipt scanning app?

No. GOV.UK doesn’t require any particular app. Scanning is one way to keep records, alongside bank feeds and manual entry.

What does HMRC need in each digital record?

For Making Tax Digital, HMRC says each record needs the amount, the date and a category.

How long do I keep receipt images?

GOV.UK says you must keep records for at least 5 years after the 31 January submission deadline of the relevant tax year.

Does scanning work for cash expenses?

Yes. It’s a good way to record expenses you paid in cash, which won’t appear in a bank feed.

Sources

All checked on 19 October 2026.

• Business records if you’re self-employed (GOV.UK)
• Expenses if you’re self-employed (GOV.UK)
• Use Making Tax Digital for Income Tax: create digital records (GOV.UK, HMRC)
• Choose the right software for Making Tax Digital for Income Tax (GOV.UK, HMRC)