Invoices vs Receipts

[Johnny Be Good]

We have an UPWORK account( it is like FIVER ) where we pay various contracors online for some photoshop designer work.
UPWORK issues invoices that have the name of the contractor on them a specific date and the following date they take the money out automatically from our paypal account including an additional invoice from UPWORK for their fees.
Then we receive a RECEIPT that date from UPWORK with the total ( that does not have the name of the contractor ).

So if we receive and invoice from John Bloggs on the 01/10/2023 for £10, and an additional invoice from UPWORK for £0.63 for their fees on the 01/10/2023 then a RECEIPT on the 02/10/2023 from UPWORK for £10.63

I am using XERO for my bookkeeping software and I like to have all the documents in a digital format.
With regards to accounting and book keeping is it ok to keep the RECEIPTS against the transaction instead of the INVOICES as they have the total amount instead of just the contractors amount and separately the fees? There is only one day different between due date and issue date.

 

[Daybooks]

Accounting is primarily about providing detail of profit and loss and financial position of a business. In doing so it provides you the ability to meet your regulatory requirements for reporting taxes.

Accounting provides no useful purpose if the effort of recording it in a certain way is not worthwhile. Therefore if you are not VAT registered then there is arguably no tangible benefit of logging invoice and fees separately from receipt. The one day date difference is also arguably immaterial.

If you are VAT registered then if there is recoverable VAT on those charges all you need do is decide whether your ability to record the transactions correctly and your ability to “retrieve” the VAT invoice if needed as evidence to support a VAT return is compromised. Attaching digital records to a transaction is a nicety not a requirement.

Generally being sure you have access to the VAT records or any accounting document if required is sufficient.

 

[Johnny Be Good]

Thank you for the reply.

Yes we are VAT registered but these transactions( in USD ) are zero rated expenses as UPWORK is registered overseas.