Business Records – What you need to know

Home / Tax / Business Records – What you need to know
May 17, 2011 1:25 pm Tax Comments Off on Business Records – What you need to know

What records should you keep

The sort of records you need to keep depends very much on the type of tax you have to pay and the size and complexity of your business.

The table below gives examples of only the most common records required.  If you would like any more detailed advice specific to your particular circumstances please give us a call.

 Self employed and partnerships 
Form or record Why
A record of all sales and takings, including cash receipts. For example:

  • till rolls
  • sales invoices
  • bank statements
  • paying-in slips
  • accounting records

A record of all purchases and expenses, including cash purchases. For example:

  • receipts
  • purchase invoices
  • bank and credit card statements
  • cheque book stubs
  • accounting records

 

 Allows you to quickly see what you are owed and accurately work out your total income.Allows you to quickly see what you have spent, how much you owe and what you can claim for tax purposes.
Additional records if your business is VAT registered (All these are required by law)
  • VAT account.
  • VAT sales and purchase invoices.
  • Import and export documentation for example, delivery notes.
 This summary of your allowable VAT inputs and outputs helps you complete your VAT returns accurately.

 

 Construction Industry Scheme (CIS) (All these are required by law)
Form or record Why
Contractor:Details of all payments made to all subcontractors for work done and materials subcontractors have purchased.  For example, subcontractor invoices.

Subcontractor:

Details of all payment and deduction statements.  For example, copies of invoices issued and payment statements received.

 To work out the right amount of CIS deductions that you need to make and pay. To fill in your monthly CIS returns accurately.
 Limited companies
Form or record Why
Accounting records (including details of assets, liabilities, income and expenditure). Business records (bank statements and paying-in slips, accounts books, purchases and sales information). To show the financial position at any time and comply with the Companies Act.To work out the amount of Corporation Tax that you need to pay, or claim back.

To file an accurate Company Tax Return.
Additional records if your business is VAT registered (All these are required by law)
  • VAT account.
  • VAT sales and purchase invoices.
  • Import and export documentation, for example delivery notes.
 This summary of your allowable VAT inputs and outputs helps you complete your VAT returns accurately.

 

 Employer (All these are required by law)
Form or record Why
All PAYE records. For example:

  • payments made to employees
  • deductions from your employee wages of Income Tax, National Insurance Contributions (NICs) and Student Loan payments
  • details of employee benefits and expenses
  • all records of statutory payment (including sick pay and maternity pay)
 To work out the right amount of PAYE and NIC that you and your employees need to pay.To complete your annual PAYE return accurately.

To show that your employees are getting any statutory pay they’re entitled to.