What Records Must I Keep for Self-Assessment Tax Returns in Ireland?

Proper record keeping is not just good business practice - it's a legal requirement under Irish law. The Revenue Commissioners have specific requirements for self-employed tradespeople, and failure to maintain adequate records can result in penalties, disallowed expenses, and additional tax assessments. This guide covers everything Irish tradesmen need to know about record keeping for tax compliance.

Effortless record keeping with Manano - every invoice, expense receipt, and business transaction is automatically logged and organized for your accountant. WhatsApp us your receipts and we'll handle all the categorizing and compliance.

From basic requirements to digital solutions, this comprehensive guide ensures you stay compliant while making tax preparation as straightforward as possible.

Legal Requirements Under Irish Law

Revenue Commissioners Obligations

Under Irish tax law, self-employed individuals must:

Maintain Adequate Records:

• Keep records that fully explain all transactions
• Show the true income and expenditure position
• Enable accurate tax returns to be prepared
• Be available for Revenue inspection when requested

Retention Period:

• 6 years from the end of the tax year to which they relate
• Records must remain accessible during this period
• Digital records must be backed up securely
• Paper records must be stored safely

Penalties for Poor Record Keeping:

• €1,520 penalty for failure to keep proper records
• Additional assessments if income cannot be verified
• Interest charges on underpaid tax
• Surcharges for late returns due to inadequate records

Essential Records for Irish Tradesmen

1. Income Records

All Revenue Sources:

• Invoice copies (all issued invoices)
• Receipt records (cash payments received)
• Bank deposit slips (all business deposits)
• Cash book entries (daily cash transactions)
• Customer payment records (who paid what and when)

Supporting Documentation:

• Contracts and agreements (written work orders)
• Delivery notes (proof of work completion)
• Timesheets (labour records for jobs)
• Progress payment certificates (for construction work)

2. Business Expense Records

Purchase Records:

• Receipts for all business purchases
• Invoices from suppliers
• Credit card statements (business purchases only)
• Petty cash vouchers
• Online purchase confirmations

Vehicle Expenses:

• Fuel receipts (business journeys)
• Service and repair bills
• Insurance certificates
• Vehicle registration documents
• Mileage logs (business vs private use)

Tools and Equipment:

• Purchase receipts (for capital allowances)
• Hire agreements (temporary equipment)
• Maintenance and repair costs
• Insurance valuations

3. VAT Records (If VAT Registered)

Sales Records:

• VAT invoices issued (all copies)
• Sales book or register
• Credit notes issued
• Export documentation (if applicable)

Purchase Records:

• VAT invoices received (from suppliers)
• Import documentation (VAT paid at import)
• Purchase book or register
• Credit notes received

VAT Returns:

• Copies of all VAT returns submitted
• Payment confirmations to Revenue
• Supporting calculations and worksheets

Detailed Record Categories

Income Documentation

Customer Invoices:

• Numbered sequentially
• Include all required information
• Show VAT separately (if applicable)
• Date of issue and payment due date

Cash Receipts:

• Daily cash book entries
• Receipt numbers and dates
• Customer names and job details
• Cash deposit records

Bank Records:

• Monthly bank statements
• Deposit documentation
• Direct credit confirmations
• Online banking records

Expense Categories for Tradesmen

Direct Job Costs:

• Materials: Receipts for all materials purchased for specific jobs
• Subcontractor costs: Payments to other trades
• Equipment hire: Temporary equipment rentals
• Site costs: Access fees, parking, tolls

Business Overheads:

• Insurance: Public liability, professional indemnity, motor
• Professional fees: Accountant, solicitor, consultant costs
• Training and certification: Course fees, examination costs
• Subscriptions: Trade associations, professional bodies
• Marketing: Website costs, advertising, business cards

Vehicle and Transport:

• Business mileage records:
  • Date and purpose of journey
  • Destination and distance
  • Start and end odometer readings
  • Business vs private use percentage
• Running costs: Fuel, insurance, servicing, repairs
• Finance costs: Loan interest, lease payments

Home Office Expenses (If Applicable):

• Business use percentage of home
• Utility bills: Electricity, gas, phone, broadband
• Property expenses: Proportionate house insurance, repairs
• Office supplies: Stationery, computer equipment

Capital Asset Records

Equipment and Tools:

• Purchase receipts with dates and amounts
• Asset registers showing:
  • Description of asset
  • Date of purchase
  • Cost including VAT
  • Expected useful life
  • Current written down value
• Disposal records: Sales receipts, scrap values, trade-ins

Property and Premises:

• Purchase/lease agreements
• Improvement costs (capital expenditure)
• Professional valuations
• Planning permission documents

Digital Record Keeping

Acceptable Digital Formats

Revenue-Approved Formats:

• PDF documents (receipts, invoices, statements)
• Digital photographs (receipts, documents)
• Scanned documents (paper records converted)
• Electronic records (online banking, email receipts)
• Cloud-based storage (accessible backups required)

Quality Requirements:

• Clear and readable
• Complete information visible
• Searchable where possible
• Backed up securely
• Accessible when required

Digital Storage Best Practices

Organization Structure:

Business Records 2025/
├── Income/
│   ├── Invoices Issued/
│   ├── Cash Receipts/
│   └── Bank Statements/
├── Expenses/
│   ├── Materials/
│   ├── Vehicle/
│   ├── Insurance/
│   └── Professional Fees/
├── VAT Records/ (if applicable)
├── Equipment Purchases/
└── Annual Returns/

Backup Requirements:

• Multiple locations (cloud and local storage)
• Regular backups (weekly minimum)
• Version control for updated records
• Access controls (password protection)
• Recovery procedures tested regularly

Record Keeping for Different Business Types

Sole Traders

Minimum Requirements:

• Income and expenditure account
• Assets and liabilities statement
• Supporting vouchers for all entries
• Bank account records
• Cash book (if cash transactions occur)

Partnership Records

Additional Requirements:

• Partnership agreement and any amendments
• Capital account records for each partner
• Profit sharing arrangements documentation
• Partner drawings records
• Partnership tax return supporting documents

Limited Companies (Tradesmen Incorporated)

Company-Specific Records:

• Annual accounts (prepared by qualified accountant)
• Corporation tax returns
• PAYE/PRSI records (if employees/directors)
• Company meetings minutes and resolutions
• Share capital and ownership records

Common Record Keeping Mistakes

1. Missing Receipts

Problem: Lost or destroyed receipts for legitimate business expenses Prevention:

• Photograph receipts immediately
• Use expense tracking apps
• File receipts systematically
• Keep digital and paper backups

2. Personal and Business Mixing

Problem: Personal expenses claimed as business expenses Solution:

• Separate business and personal bank accounts
• Clear business use records for mixed-use assets
• Detailed mileage logs for vehicles
• Home office use calculations

3. Inadequate Descriptions

Problem: Vague descriptions like "materials" or "expenses" Solution:

• Detailed descriptions of purchases
• Job references for specific costs
• Customer names for materials
• Purpose of all expenditure

4. Poor Date Management

Problem: Incorrect dates affecting tax year allocation Solution:

• Record transaction dates accurately
• Understand cash vs accruals accounting
• File documents by correct tax year
• Regular reconciliation procedures

Technology Solutions

Accounting Software Options

Irish-Focused Solutions:

• Big Red Book (Irish accounting software)
• TaxCalc (popular with Irish accountants)
• Xero (cloud-based with Irish features)
• QuickBooks (Irish localization available)
• Sage Business Cloud Accounting

Features for Tradesmen:

• Mobile receipt capture
• Invoice creation and tracking
• Bank account integration
• VAT calculation and returns
• Asset register maintenance
• Mileage tracking

Mobile Apps for Record Keeping

Receipt Tracking:

• Receipt Bank (now part of Dext)
• Shoeboxed (receipt scanning service)
• Wave Receipts (free option)
• Expensify (expense management)

Mileage Tracking:

• MileIQ (automatic mileage logging)
• TripLog (manual and automatic options)
• Everlance (business expense tracking)

Revenue Audit Preparation

What Revenue Look For

Common Audit Areas:

• Income completeness: Are all revenue sources declared?
• Expense legitimacy: Are claimed expenses genuinely business-related?
• VAT compliance: Correct rates and record keeping
• Cash transactions: Proper recording of cash receipts and payments

Documentation Standards:

• Chronological filing of records
• Cross-referencing between different record types
• Reconciliation of various sources
• Professional presentation of information

Audit Survival Tips

Preparation:

• Organize records systematically before any contact
• Prepare summaries of key figures and explanations
• Identify potential issues and explanations
• Consider professional help from accountant or tax advisor

During Audit:

• Cooperate fully with Revenue officers
• Provide requested information promptly
• Ask for clarification if requests are unclear
• Keep records of all interactions

Annual Tax Return Preparation

Information Required

Income Summary:

• Total revenue from all sources
• Breakdown by customer/job type
• Seasonal variations
• Outstanding debtors at year end

Expense Summary:

• Total expenses by category
• Capital expenditure (separate from revenue)
• Asset additions and disposals
• Outstanding creditors at year end

Supporting Schedules:

• Vehicle expense calculations
• Home office expense apportionments
• Capital allowances computations
• Private use adjustments

Professional vs DIY Preparation

Consider Professional Help When:

• First year in business (learning requirements)
• Complex transactions (multiple revenue streams)
• VAT registration changes during year
• Significant asset purchases/disposals
• Revenue queries or audit issues

DIY Considerations:

• Simple business structure
• Good record keeping throughout year
• Understanding of tax rules
• Time available for preparation
• Comfort with tax software

Record Retention and Disposal

Retention Periods

Tax Records: 6 years from end of tax year VAT Records: 6 years from end of relevant period PAYE/PRSI Records: 4 years from end of tax year Company Records: Varies by document type (3-10 years)

Secure Disposal

Paper Records:

• Shred confidential documents
• Use secure disposal services
• Certificate of destruction (if required)

Digital Records:

• Secure deletion of files
• Destruction of storage devices
• Backup cleanup procedures

Conclusion

Proper record keeping for self-assessment tax returns is a fundamental requirement for Irish tradesmen. The key principles are:

Legal Compliance:

• Maintain records for 6 years minimum
• Keep comprehensive documentation
• Ensure records explain all transactions
• Have systems for Revenue inspection

Business Benefits:

• Accurate tax return preparation
• Maximum allowable expense claims
• Professional business management
• Evidence for customer disputes

Technology Integration:

• Use appropriate software solutions
• Implement digital backup systems
• Maintain organized filing systems
• Regular system maintenance

Professional Standards:

• Separate business and personal records
• Detailed transaction descriptions
• Regular reconciliation procedures
• Consider professional assistance when needed

Remember that good record keeping is not just about tax compliance - it's about understanding your business performance, managing cash flow, and making informed decisions. The time invested in proper record keeping pays dividends through reduced tax preparation costs, maximized expense claims, and better business management.

Simplify everything with Manano - automatically track all your income, expenses, and business records with zero admin work. Just WhatsApp us your job details and receipts, and we'll keep your books perfectly organized for your accountant.

Start with basic systems and improve them over time. The most important step is to begin keeping records consistently from day one of your business operations. Whether you use simple cash books or sophisticated accounting software, the key is consistent, accurate, and complete record keeping that meets Irish Revenue requirements.