CH10200 - Record Keeping: Nature and extent of records
The records that a person keeps will generally reflect the size
and complexity of their affairs. They may range from the simplest
of manual records for a sole trader to the most sophisticated
computerised system for a multi-national company.
The records do not have to be in any particular format, but
they should be up to date and kept in sufficient detail to
- allow the person to make a correct and complete return
- allow the person to calculate the correct amount of tax to be paid or claimed
- enable us to check the figures on the return or claim.
The precise nature and extent of the records needed to fulfil
these requirements will be dependent upon the type and size of the
business or the person’s affairs.
Commercial and accounting practices that are common to
certain trade sectors, such as self- billing and authenticated
receipts in the construction industry, will also influence the way
in which records are preserved. And Section 386 Companies Act 2006
sets out the accounting records that a company must keep, see
CH11400.
You can find examples of the common types of business and
accounting records in
- Notice 700 The VAT Guide
- Notice 700/21 - Keeping VAT records.
