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How to Build Audit-Proof Invoice Records

An HMRC enquiry into your VAT or corporation tax returns will require you to produce invoice records. If your records are incomplete, incorrectly coded, or missing original documents, you'll face penalties and additional tax. Here's how to build records that withstand scrutiny.

What HMRC looks for in an enquiry

  • Original invoice (not just a bank statement or receipt)
  • Supplier's VAT registration number on the invoice
  • Invoice addressed to your business (not personal)
  • Correct VAT rate applied for the goods/services
  • Invoice retained for 6 years from accounting period end
  • Record of who approved the spend and when

What an audit-proof FreeAgent record looks like

Every bill in FreeAgent should have: the original PDF attached (not a summary or bank screenshot), the correct nominal code, the correct VAT rate, the supplier's VAT number visible in the document, and the correct bill date and due date. InboxBill creates all of this automatically during the sync process.

The approval audit trail

InboxBill logs who approved each invoice and when. This approval audit trail — 'Invoice 1234 from Supplier X approved by Jane Smith on 15 March 2024' — is exactly the kind of internal control evidence that HMRC appreciates seeing in an enquiry.

The best time to build audit-proof records is before you receive an enquiry, not after. Every invoice processed correctly through InboxBill is one less potential problem.

Build compliant records from day one

InboxBill creates complete, audit-ready invoice records automatically.

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