Be Audit-Ready: What HMRC Wants to See in Your Corporation Tax Records

Team Nomi

Apr 14, 2025
3 minutes read

Keeping accurate financial records has always been an important part of running a compliant limited company. However, with increased automation, real-time reporting and even tighter regulations, businesses must now be ready to produce detailed records at a moment’s notice.

So let’s take a closer look at the records required for an HMRC Corporation Tax audit, what happens during an HMRC Tax Investigation and how digital systems are redefining compliance.

Why Good Record-Keeping Matters More Than Ever

When HMRC selects a company for a Corporation Tax check, they’re looking for transparency, accuracy and consistency. This applies whether you’re being audited routinely or as part of an HMRC Tax Investigation. Inadequate or incomplete records can delay the process and even lead to penalties.

With HMRC’s increasing use of data analytics and automation, record-keeping isn’t just about staying organised, it’s also about making sure your business is future-proof. This shift towards Making Tax Digital (MTD) and the wider use of cloud-based accounting software, like Nomi, means that digital compliance is no longer just optional.

What Records Must You Keep?

According to HMRC, companies must keep all records that support the figures submitted in their Corporation Tax Return. These include:

Financial and accounting records

• • Invoices (sales and purchases)
  • Receipts for business expenses
  • Bank statements and loan agreements
  • Payroll records and pension contributions
  • VAT records (if registered)
  • Asset registers and depreciation schedules

Company-specific documents

• • Corporation Tax computations
  • Annual accounts and supporting ledgers
  • Board meeting minutes and dividend vouchers
  • Details of loans to directors or related parties

Supporting documentation

• • Contracts and service agreements
  • Stocktakes and inventory records
  • Mileage logs and travel receipts

These records should support every number on your Corporation Tax Return, from turnover to allowable expenses.

How Long Should You Keep Them?

HMRC requires companies to retain records for at least six years from the end of the accounting period they relate to. However, if a return is late or under investigation, you may need to keep them for longer.

Why Digital-First Businesses Stay Ahead

Traditionally, storing and organising records involved paper files, spreadsheets and disconnected systems that quite simply were not accurate enough and allowed discrepancies slip through the net. Today, HMRC’s digital-first approach means businesses should embrace technology that enables precise and compliant record-keeping.

Cloud-based accounting software not only simplifies submissions but also ensures your data is stored securely, consistently and in a format HMRC is ready to review. Some platforms even offer audit trails, real-time backups and tagging features that make preparing for an HMRC Tax Investigation far less stressful.

Stay One Step Ahead of HMRC

Whether you’re preparing your Corporation Tax Return or responding to an HMRC audit, your best defence is accurate digital record-keeping. The digital transformation of tax is well underway and it’s up to businesses and accountants to keep pace.

With Nomi’s cloud-based accounting software, you can securely store, manage and retrieve records, ready for submission or inspection at any time. Want to make your business or practice audit-ready? Try Nomi’s MTD-ready software and keep your records in check, the smart way, so you can stay in control, no matter what HMRC sends your way… or when.

Want to see how it works in action? Book a demo now.