You do not need to send your records in when you submit your tax return, but you need to keep them so you can:
· work out your profit or loss for your tax return
· show them to HMRC if asked.
You must make sure your records are accurate. Using accounting software can help you to do this.
Types of proof include:
· all receipts for goods and stock
· bank statements, chequebook stubs
· sales invoices, till rolls and bank slips
If you are using traditional accounting
As well as the standard records, you will also need to keep further records so that your tax return includes:
· what you are owed but have not received yet
· what you have committed to spend but have not paid out yet, for example, you've received an invoice but have not paid it yet
· the value of stock and work in progress at the end of your accounting period
· your year-end bank balances
· how much you have invested in the business in the year
· how much money you've taken out for your own use
A private limited company must keep the following business records, where applicable:
- Register of members (shareholders or guarantors).
- Register of company directors.
- Directors’ service contracts.
- Register of Secretaries
- Register of People with Significant Control (PSC)
- Records of resolutions and minutes of meetings.
- Directors’ indemnities – security against liability claims or legal costs.
- Contracts relating to purchase of own shares.
- Documents relating to redemption or purchase of own shares out of capital by private company.
- Register of debenture holders.
- Instruments creating charges and register of charges – i.e. mortgages or secured loans.
A company should also keep copies of its certificate of incorporation, the memorandum and articles of association and all share certificates (if applicable).
In addition, you'll need to keep accounting records for the following:
- Goods and services bought and sold by the company
- All forms of income and expenditure
- Company assets, liabilities and credits
- Inventory of all stock and assets owned at the end of each financial year
- The stocktakings used to work out the inventory figures
- Details of who goods and services were bought from and sold to, with the exception of retail sales.
- Board meetings - Dividend vouchers
The accounting records will be kept automatically as part of your bookkeeping and accounting service.