Going paperless isn't just about the environment — it's about having every invoice instantly searchable, HMRC-compliant, and accessible from anywhere. Here's how to do it properly.
Yes. HMRC fully accepts digital records under Making Tax Digital. You do not need to keep paper originals if you have digital copies. The key requirements are: the digital copy must be a true and complete record, it must be retained for the required period (6 years for VAT), and you must be able to produce it on request.
Capture
All invoices arrive digitally (email PDFs) or are scanned on receipt (for paper invoices that still arrive). Physical originals can be shredded once scanned and confirmed.
Extract and record
AI extracts the data and creates a structured record in your accounting software. The original PDF is attached to the bill record — not just filed separately.
Store and retrieve
Cloud storage means invoices are accessible forever, backed up automatically, and searchable by supplier, date, amount, or invoice number.
Some suppliers still post paper invoices. The cleanest approach: scan immediately on receipt using a phone scanning app (Adobe Scan, Microsoft Lens) and email the PDF to your InboxBill forwarding address. AI processes it the same as any email attachment. File the physical copy for 30 days, then shred.
InboxBill captures, extracts, and archives every invoice automatically.
Get started freeHMRC VAT Records: What Your Small Business Must Keep
HMRC requires VAT-registered businesses to keep specific records for at least 6 years. Get it wrong and you risk penalties during an inspection. The good news: digital record-keeping not only satisfies these requirements — it makes compliance automatic.
How to Automate Invoice Processing for Your Small Business
The average small business spends 5–10 hours per month manually processing supplier invoices. That's time spent copy-pasting figures into spreadsheets, chasing down PDFs, and reconciling mistakes. Automation cuts this to minutes.