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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: business records checks: at the visit: business receipts (including ancillary income)

Business receipts may also be described as

  • sales
  • takings
  • turnover or
  • income.

Records of business receipts are fundamental to your judgement on the adequacy of the business records as a whole.

Many factors will influence the form of the records customers keep and how often they are updated. However, the approach to maintaining records should be sufficient for the purposes of ensuring that amounts received are adequately recorded. The appropriate format of the records maintained will be influenced by factors such as:

  • value of receipts - both in terms of the individual transactions and cumulatively
  • frequency of transactions
  • whether amounts received are in cash or another form
  • the nature and number of the customers, and whether they are other businesses or the general public
  • the nature of the amounts received (for example, whether a sale of goods or services, ancillary income, tips, or receipts in another form).

We do not prescribe the method for how the records are kept. You must not advise that the customer should keep specific records, for example a cash book or ledger, if the customer has an otherwise adequate record of business receipts.

Ancillary income

You must also consider the possibility that the customer has received ancillary income and whether or not they have recorded full details of these.

Examples may include tips, commissions and rents for surplus accommodation.

The outcome must be recorded in your BRC Notebook.

See COG940300 for examples of adequate records of business receipts.