Keep source documents and explanations
Collect sales invoices, purchase invoices, relevant adjustments, payment evidence and your VAT account. Keep records of how unusual transactions were treated. HMRC generally requires VAT business records to be kept for at least six years, with exceptions and additional rules for some circumstances.
Use consistent references
Give each source document a stable reference that also appears in the ledger. Keep the original document, not just a calculator screenshot. A screenshot can support a check, but it does not establish who supplied what, the date of supply or the entitlement to input VAT.
Create a period-end folder
Store the reconciled totals, unresolved-item log, review notes and submission confirmation together. Keep adjustments traceable to their source and explain why they were made. Make sure backups can actually be restored and that access is available to the people responsible for the return.
Monthly maintenance beats a last-minute search
Resolve missing invoices and inconsistent tax codes while the transactions are recent. Reconcile bank allocations where relevant to your accounting method. Before disposing of old records, check the HMRC retention rules and any ongoing enquiry or other obligation.
Keep learning
FAQs
How long must I keep VAT records?
You must keep VAT records for at least 6 years (10 years if you use the VAT MOSS/mini one stop shop systems for digital services). HMRC can ask to see them at any time within that window.
What VAT records do I have to keep?
Keep a VAT account summarising each return, plus copies of all sales and purchase invoices, credit notes, import/export documents, till rolls or sales records, and bank statements showing the related payments.
Do my records have to be digital?
Under Making Tax Digital, VAT-registered businesses must keep core records digitally (figures such as totals of sales and purchases) and file returns using compatible software. The underlying invoices and receipts can still be paper or scanned copies.
What happens if my records are incomplete?
HMRC can charge a penalty for failing to keep proper records, and if they cannot verify your returns they may assess the VAT they believe is due — with interest. Reconstruct missing records as far as you can rather than ignoring gaps.
Can I keep records electronically instead of paper?
Yes. HMRC accepts electronic copies (including scanned invoices) as long as they are complete, readable and kept for the full retention period. Make sure they are backed up — a lost laptop is not accepted as an excuse.
Official sources
Sources checked: 2026-09-26. Check the official guidance for later changes.
Educational information and estimates. These tools do not submit VAT returns or determine the treatment of a specific transaction.