Need the help of a qualified bookkeeper? - Which invoices business must keep

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Which invoices business must keep

Ramunas

4 posts

# 91094
Wed 22 May 2013 08:13 AM

I've recently started my practise in IT related company.

I understand, that it's very important to keep all documents, but at this moment we missing some invoices. According to HMRC every transaction has to have related invoice. So my questions are:

* In case when goods and services were purchased in UK, do we have to keep all invoices including unsignificant amounts?
I've seen in other postings, that VAT can be claimed without having an invoice for purchases less than Â£25, but in case were company would be audited would authorities request all documents or just significant amounts?

* If it's IT related expenses purchased in non-EU based companies is it very important to have invoice, as VAT is not claimed.
Is there any exception for unsignificant amounts?

* Is it important to store invoices from companies such as Google Ads, Facebook, Microsoft Bing, Domain providers as statements could be extracted any time from the online account directly if requested and VAT is not claimed.

* If it's IT related expenses purchased in EU based companies is it very important to have invoice, as VAT is not claimed.
Is there any exception for unsignificant amounts?

* What consequenses we facing if any mentioned documents are not kept?

Thanks for Your help in advance

Edited at 22 May 2013 08:14 AM GMT

Edited at 22 May 2013 08:15 AM GMT

Theresa

Member
495 posts

# 91099
Wed 22 May 2013 09:37 AM

My gut instinct it to say that paper trail is vital. How do you prove that the purchases made were UK, EU or non-EU if you don't keep the paperwork?

That said, the paper trail need not be kept on-site. You say this is an IT company - do they have the facilities to scan all documents and create reference files which can be backed up and kept off-site? It is perfectly acceptable - in as far as I am aware - to scan and save all documents, keeping a 'file' on-site (data sticks or a stand-alone hard drive), the usual back-ups off site and then store all the actual paperwork in boxes in secure, dry, humidity controled storage elsewhere. If the inspectors come calling or the company audit team need to see stuff you have everything on the computer for them and can access the relevent boxes of original paperwork as required.

By the way - you need to keep 7 years of paperwork. That's how far back the inspectors can go and that is what they can ask to see!