What VAT records must a VAT-registered sole trader keep?

VAT-registered sole traders must keep detailed records and retain them for 6 years. HMRC's Making Tax Digital (MTD) rules require most VAT-registered businesses to keep digital VAT records and submit returns using MTD-compatible software. Records to keep: - VAT account (a summary of VAT charged and reclaimed each period) - Sales invoices (showing customer name, your VAT number, VAT rate, VAT amount) - Purchase invoices (for any VAT you want to reclaim) - Import and export documents (if applicable) - Any VAT adjustments and credit notes Sales invoices must include: your business name and address, your VAT registration number, invoice date, sequential invoice number, description of goods/services, net amount, VAT rate, VAT amount, and gross total. Retain all records for 6 years minimum.

  • Keep VAT records for 6 years minimum
  • MTD (Making Tax Digital): must use compatible software to file VAT returns
  • Sales invoices must include your VAT number, VAT amount, and other mandatory fields
  • Keep a running VAT account showing output and input VAT for each period
  • Purchase invoices needed to evidence input VAT reclaim

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