VAT records

Any business must keep good records, and it is particularly necessary for VAT. VAT records need to be up to date and accurate enough to enable the correct amount of VAT to be charged on your sales or recovered on your expenses. They should also show clearly where the figures on the VAT returns have come from. You are likely to receive a visit from HMRC to check your VAT records, so they need to be clear enough for the VAT officer to follow.

You must keep your VAT records for a minimum of 6 years.

For detailed information on records, please see http://www.hmrc.gov.uk/vat/managing/returns-accounts/accounts.htm 

If you do make mistakes when operating VAT, HMRC can penalise you (See (http://www.hmrc.gov.uk/vat/managing/problems/penalties.htm) so it is important to operate VAT correctly.