Do I need to keep record of sales invoices with on Flat Rate Scheme for Ltd Company 17 October at 11:56PM in Small Biz & Charities' MoneySaving 4 replies 63 views

john01269

Hi,
I'm not long become a limited company and am on the flat rate scheme which I now longer need to keep vat invoices I believe (only need to give a vat invoice to any customer that asks for one), am I right with what I'm saying here and would I need sales invoices for showing detailed customer sales for the corporation tax side of the limited company or is keeping sales invoices not needed taking in mind I am a online retailer, so would just keeping monthly turnover figures be acceptable for both the Flat Rate VAT scheme and also for showing my turnover/earnings for the corporation tax part?
The thing is with some platforms I sell on like Amazon, ebay, etc. they have their own vat systems and having to save every invoice of all my sales would take for ever as my sales are low priced sales.

Looking forward to your replies.

Thanks

oldbikebloke

all the platform sellers provide transactional level reports of activity on your account for obvious reasons, you should keep those as they are part of your accounting records 
https://www.gov.uk/running-a-limited-company/company-and-accounting-records#:~:text=You must keep records for,years, like equipment or machinery

technically, yes you are supposed to keep your invoices:
https://www.gov.uk/vat-record-keeping/vat-invoices

However, given it would appear you are a "retail" business, you don't have to, as the transactional info from each platform meets the requirement for time of supply evidence:
https://www.gov.uk/vat-record-keeping/making-tax-digital-for-vat

Grumpy_chap

The calculation for VAT flat rate is very simple, it is just gross turnover (sales including VAT) multiplied by the appropriate percentage.  
What record keeping system are you using to comply with MTD?  (Making Tax Digital)

john01269

Grumpy_chap said:

The calculation for VAT flat rate is very simple, it is just gross turnover (sales including VAT) multiplied by the appropriate percentage.  
What record keeping system are you using to comply with MTD?  (Making Tax Digital)

I will be just keeping all my records, purchase invoices, sales summary information digitally saved on my computer and then send it all to my accountant where they would use a MTD system instead of me that is what I hope anyway when I get an accountant.

Grumpy_chap

Your Accountant will be able to advise what records to keep and what format to minimise the Accountant's work (fee) to complete the necessary MTD submissions.