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Records to be kept by all taxable persons

The basic rule when keeping records is that businesses must create and keep normal business records. These do not have to be kept in a set way and HMRC acknowledges that most bookkeeping and computer systems will meet this requirement. Under the Making Tax Digital (MTD) requirements, records that form part of the taxable persons 'electronic account' must be kept digitally in functional compatible software. For more details see V5.101B.

HMRC has the power to make provision by regulations about the form and means by which, records are kept and preserved¹

More precisely, a taxable person must keep the records listed (1) to (11) below for the purpose of accounting for tax as per Regulations made under VATA 1994, Sch 11, para 6(1), (2)².

The records are:

1. Ìý

   (1)ÌýÌýÌýÌý the taxable person's business and accounting records – see Notice 700/21 for HMRC policy regarding business records

2. Ìý

   (2)ÌýÌýÌýÌý VAT Account (see V5.211)

3. Ìý

   (3)ÌýÌýÌýÌý copies