Starting a business
If you run a business, you must keep certain records for tax purposes. Your records can be used to confirm information contained in your tax returns and they should clearly show the accounting process.
If your accounts are prepared by an agent or accountant, they may keep your records on your behalf. However, you are ultimately responsible for your record keeping. If you are in a partnership, the precedent partner is responsible for keeping records. You must keep the original of these documents for six years.
What types of records are kept?
You must keep anything that is used to calculate your Income Tax, Corporation Tax (CT) or Capital Gains Tax (CGT). These records are known as ‘linking documents’ and can include:
- receipts for expenses
- receipts for purchases
- sales invoices
- nominal ledgers
- accounting books.
You should keep your records continuously for all transactions. It is possible to store a digital copy of your receipts through Revenue Online Service (ROS) on Receipts Tracker.
Next: Buying or leasing a business premises