Keeping business records and accounts for VAT

If you are registered for VAT, you must keep certain business records and VAT records.

You do not have to keep these records in a set way; just so your records:

• are complete and up to date
• allow you to work out correctly the amount of VAT you owe to HM Revenue & Customs (HMRC) or can reclaim from HMRC
• are easily accessible when HMRC visits you - for example the figures you use to fill in your VAT Return must be easy to find

Business records you need to keep include the following:

• annual accounts, including profit and loss accounts
• bank statements and paying-in slips
• cash books and other account books
• orders and delivery notes
• purchase and sales books
• records of daily takings such as till rolls
• relevant business correspondence

In addition to these business records, you need to keep VAT records and a VAT account as outlined in the following sections of this guide.

Get information about sales and invoicing for VAT

Find out about purchases and VAT receipts

Find out what happens when a VAT officer comes to visit you

Find out about VAT Returns and paying or reclaiming VAT