What records to keep!
It’s that time of year for again for sole traders to gather their information together for the accountant (hopefully us). Many people are still unsure what information they need to keep.

HMRC require all businesses (whether sole traders, partnerships or limited companies) to keep and retain “adequate business and accounting records” – but what does this include?

You need to keep as an absolute minimum:
 
  • Contracts and agreements
  • Sales invoice copies
  • Purchase invoices and receipts
  • Bank statements and cheque book stubs
  • Credit card statements and receipts
  • Paypal statements
  • You need to keep them for at least 6 years.
You don’t necessarily need to keep paper copies of receipts, they can be scanned and stored electronically if you prefer, although there are a few documents where you do need to keep originals (P60s, statutory books etc).

What if you are VAT registered?

If you are VAT registered, you need to keep VAT records for at least 6 years (10 years if you use the VAT MOSS scheme). The list of VAT records includes the above, but you also need to keep:
 
  • self-billing agreements – this is where the customer prepares the invoice
  • name, address and VAT number of any self-billing suppliers
  • debit or credit notes
  • import and export records
  • records of items you can’t reclaim VAT on – eg business entertainment
  • records of any goods you give away or take from stock for your private use
  • records of all the zero-rated, reduced or VAT exempt items you buy or sell
  • a VAT account (showing how you came to the VAT figure each quarter)
If you are in any doubt please call us on 01462 791079

Get in touch - If you'd like to find out more about how we can help you and your business pay less tax, generate more profits and create long-term wealth for you and your family, please get in touch now