💬 Introduction
One of the most common questions UK business owners ask is:
“What bookkeeping tasks do I actually need to do and how often?”
It’s a fair question. Between chasing invoices, logging expenses, and staying on top of VAT returns, it’s easy to feel unsure whether you’re doing enough.
From April 2026, Making Tax Digital for Income Tax Self Assessment (MTD ITSA) will make digital record-keeping mandatory for self-employed individuals and landlords earning over £50,000 — dropping to £30,000 in 2027 (GOV.UK MTD overview). That means your bookkeeping habits need to be both accurate and digital.
This guide lays out exactly what you must do weekly, monthly, quarterly, and annually to stay compliant, and how a disciplined checklist protects you from HMRC penalties, lost deductions, and cashflow shocks.
At the end, you can:
✅ Download our free DIY Bookkeeping Checklist (PDF) to keep by your desk.
✅ Book a 15-minute discovery call if you’d prefer Heights Accountancy to take care of it for you.
If you’re still unsure whether DIY bookkeeping is worth your time, read 👉 Should You Do Your Own Bookkeeping or Outsource It?
📊 At a Glance: Bookkeeping Tasks UK 2025/26
💡 In 2025/26, small-business bookkeeping in the UK typically involves recording income and expenses weekly, reconciling bank accounts monthly, filing VAT quarterly, and preparing accounts annually to stay MTD-compliant.
| Frequency | Core Tasks | Why It Matters |
|---|---|---|
| Weekly | • Record income & expenses • Reconcile bank transactions • Chase overdue invoices • File receipts digitally | Prevents cashflow blind spots → see our Common DIY Bookkeeping Mistakes Guide |
| Monthly | • Process payroll journals • Check VAT coding • Prepare management accounts • Review debtors & creditors • Assess cashflow position | Builds financial visibility → read our Cashflow Forecasting Guide |
| Quarterly | • Submit VAT returns (MTD) • Review director’s loan account • Estimate tax liabilities | Keeps you HMRC-compliant → see MTD ITSA 2026 Explained |
| Annually | • Prepare year-end accounts • File tax returns (CT600 / SA100) • Retain records for 5–6 years • Review whether DIY still fits | Ensures full compliance → compare in How Much Does an Accountant Cost in the UK (2025)? |
👉 For a printable version with tick-boxes and deadlines, Download our Free DIY Bookkeeping Checklist (PDF).
⚖️ Why a Bookkeeping Checklist Matters
Bookkeeping isn’t just about staying organised it’s a legal requirement. Under HMRC record-keeping rules, limited companies must keep records for six years, while sole traders must keep them for five years after the 31 January Self Assessment deadline.
Here’s why a checklist matters:
- ✅ It keeps you compliant with HMRC and Companies House. Missing records can trigger investigations or rejected expense claims.
- 💷 It protects against penalties — for example, late VAT filings now fall under HMRC’s points-based penalty system (GOV.UK VAT penalties).
- 📈 It improves decision-making by keeping cashflow forecasts accurate. See our Rolling Cashflow Forecasts Guide.
🗓 Weekly Bookkeeping Tasks
Typical time required: 2 hours per week
1. Record income and expenses
Log every invoice and receipt. HMRC requires supporting evidence for all transactions (receipts, mileage logs, bank statements).
2. Reconcile bank accounts
Match transactions in your bank feed to your records to spot missing entries early.
3. Chase overdue invoices
Check aged debtors weekly. Timely reminders protect your cashflow. → see Why DIY Forecasts Often Fail (and How to Fix Them).
4. Store receipts digitally
Under MTD, digital record-keeping is compulsory for many businesses from 2026. Use apps to snap and store receipts securely.
📅 Monthly Bookkeeping Tasks
1. Process payroll journals
Record gross wages, PAYE, NIC, and pension contributions accurately to avoid fines. Learn more in NIC, PAYE & Pension Costs: Why They Can Break Your Cashflow.
2. Check VAT coding
If your turnover exceeds the £90,000 VAT registration threshold (2025/26), make sure sales and purchases are coded correctly. Incorrect VAT coding is one of the top audit triggers (GOV.UK VAT thresholds).
3. Prepare management accounts
A monthly snapshot of profit and cash flow helps you spot trends early. → see Why Management Accounts Matter for Growing SMEs.
4. Check debtors and creditors
Review who owes you money and what you owe. It keeps your cashflow forecast accurate.
5. Review cashflow position
Forecast your next month’s inflows and outflows to see if you can cover payroll, VAT, and suppliers. → read our Cashflow Forecasting Guide.
🧾 Quarterly Bookkeeping Tasks
1. Submit VAT returns (if registered)
If your taxable turnover is above £90,000, you must file VAT returns digitally under MTD rules (GOV.UK MTD for VAT).
2. Review director’s loan account
An overdrawn loan account can trigger Section 455 Corporation Tax charges. Quarterly reviews prevent surprises.
3. Estimate tax liabilities
Set aside funds for Corporation Tax or Income Tax quarterly to avoid cashflow shocks.
💡 Quarterly reviews keep you compliant and make year-end far smoother.
For an MTD update, see MTD ITSA 2026 Explained.
📆 Annual Bookkeeping Tasks
1. Prepare year-end accounts
Limited companies must file annual accounts with Companies House (GOV.UK deadlines). Accuracy matters — errors can result in fines or director liability.
2. File tax returns
- Corporation Tax return (CT600) for companies.
- Self Assessment tax return for sole traders and partnerships (due 31 January).
3. Retain financial records
- Limited companies: 6 years.
- Sole traders / partnerships: 5 years after the Self Assessment deadline.
4. Review your bookkeeping system
Decide if DIY is still the best fit or if outsourcing would save time and reduce risk. Compare options in How Much Does an Accountant Cost in the UK (2025)?
🧠 Tools & Best Practices
Use accounting software
Choose an HMRC-approved platform (Xero, QuickBooks, FreeAgent etc.) that automates bank feeds and VAT submissions. From April 2026, MTD ITSA requires digital software for many sole traders and landlords.
Capture receipts digitally
Apps such as Dext or Hubdoc let you snap and store receipts instantly. Paper fades; digital records don’t.
Back up in the cloud
Store records securely and keep them accessible for the required 5–6 years.
Maintain audit trails
Every transaction should be traceable (invoice → bank → bookkeeping entry). It’s essential for VAT inspections and future MTD filings.
💡 Good tools don’t replace discipline — they make compliance faster and more accurate. See our Bookkeeping Costs UK Guide for setup comparisons.
⚠️ Risks of Ignoring the Checklist
1. Penalties & Fines
Late VAT returns trigger points-based penalties (GOV.UK VAT penalties). Companies House fines start at £150 and can reach £1,500. See Compliance Penalties Explained.
2. Missed reliefs and allowances
Poor records mean lost tax deductions (e.g. mileage claims or capital allowances).
3. Cashflow blind spots
Without accurate data, you won’t see upcoming VAT or Corporation Tax bills — see Forecast for VAT: What Every SME Should Know.
4. Stress and wasted time
Catching up at year-end means late nights and avoidable errors.
👉 Your checklist isn’t just admin — it’s your safety net against penalties and cashflow crises.
📥 Download Your Free DIY Bookkeeping Checklist
We’ve covered the essentials — now get the practical version you can tick off each week and month.
📘 Download Your Free DIY Bookkeeping Checklist (PDF)
Keep it by your desk or share with your team — so nothing slips through the cracks.
If you’d like peace of mind knowing everything’s handled properly, book a 15-minute Discovery Call with Heights Accountancy. We’ll help you decide whether DIY, hybrid, or outsourced bookkeeping is right for you.
❓ FAQs – DIY Bookkeeping in the UK
1️⃣ What counts as a valid receipt for HMRC?
It must show supplier, date, description, and amount (including VAT if applicable). Digital copies are accepted (GOV.UK records).
2️⃣ How long must I keep records?
- Limited companies: 6 years from year end.
- Sole traders/partnerships: 5 years after 31 January deadline.
3️⃣ Can I use spreadsheets for MTD ITSA?
Not alone. From April 2026, you’ll need HMRC-approved software (or bridging tools). See our MTD ITSA Guide.
4️⃣ Do sole traders need different bookkeeping?
The basics are the same. Sole traders file Self Assessment; companies file accounts and Corporation Tax. Compare in Cost of an Accountant Guide.
5️⃣ What if I miss a VAT deadline?
Repeated lateness = automatic penalties and interest. Plan ahead with our Cashflow Forecasting Blog.
🧭 Conclusion: Your Bookkeeping Checklist in Action
Bookkeeping isn’t just a box to tick — it’s your business’s financial health check. By splitting tasks into weekly, monthly, quarterly, and annual routines, you stay compliant with HMRC, protect cashflow, and avoid penalties.
For micro businesses, this DIY checklist may be enough. But if you’re VAT-registered, running payroll, or dealing with high transaction volumes, DIY can quickly become risky — especially with MTD ITSA bringing quarterly filing from 2026.
📘 Download Your Free DIY Bookkeeping Checklist Here
💬 or Book a 15-minute Discovery Call to discuss whether DIY, hybrid or outsourced bookkeeping fits your business best.