How long to keep records for tax!
Discussion
I thought I would give my shredder some exercise today but before I passed the point of no return I thought that I better check how long I needed to keep my self employed business records for.
Both these screen grabs are from the HMRC website today:
The 5 years and 10 months don't (to me) square with their 'example'
Also I can't see any difference between the filing before, or after the 31st January deadline :veryconfusedsmiley:
And this one appears to give contradictory information :maybeiamstupidsmiley:
Both these screen grabs are from the HMRC website today:
The 5 years and 10 months don't (to me) square with their 'example'
Also I can't see any difference between the filing before, or after the 31st January deadline :veryconfusedsmiley:
And this one appears to give contradictory information :maybeiamstupidsmiley:
Edited by Elderly on Monday 9th September 18:30
The problem is establishing the dates. It can vary dramatically - especially for sole traders.
The simple rule is six years from the end of the relevant tax year.
However, if you are a sole trader with (say) a business year that runs from 1 July to 30 June, then the retention period will be closer to 8 years.
The simple rule is six years from the end of the relevant tax year.
However, if you are a sole trader with (say) a business year that runs from 1 July to 30 June, then the retention period will be closer to 8 years.
Eric Mc said:
However, if you are a sole trader with (say) a business year that runs from 1 July to 30 June, then the retention period will be closer to 8 years.
So this sole trader in your example made his last online return on the 30th January 2013; what period (covering two calendar years) is the last set of 1st July to 30th June tax year records has he to keep Eric?I still don't understand the periods given in the apparently contradictory screen grabs from HMRC.
Why does one say 5 years and the other say 5 years and 10 months?
Edited by Elderly on Monday 9th September 19:56
The screen grabs by the OP say the same thing, just not very clearly as is typical of HMRC guidance.
The rule is you have to maintain the source accounting info for 5 years and 10 months after the end of the tax year that they have been reported - an example:
Your self-employed accounts are prepared for the year to 30th April - so the most recent set will cover 1 May 2012 to 30 April 2013. This will be reported on the 2013/14 tax return and so the underlying records must be retained until 31 January 2020. Similarly, if the year end was 31 March 2013, it would be reported on the 2012/13 tax return and records retained until 31 January 2019, a year earlier.
Hope that's clearer for you??
David
The rule is you have to maintain the source accounting info for 5 years and 10 months after the end of the tax year that they have been reported - an example:
Your self-employed accounts are prepared for the year to 30th April - so the most recent set will cover 1 May 2012 to 30 April 2013. This will be reported on the 2013/14 tax return and so the underlying records must be retained until 31 January 2020. Similarly, if the year end was 31 March 2013, it would be reported on the 2012/13 tax return and records retained until 31 January 2019, a year earlier.
Hope that's clearer for you??
David
sumo69 said:
.......... just not very clearly as is typical of HMRC guidance.
Actually my thread title didn't have a '?' after it but a '!' and the above point is what I was trying (obliquely 
) to make.However, I then got myself rather confused because I had always thought that the HMRC tax year was to April 5th and try as I might I couldn't reconcile that date with the 31st January, using 5 years and 10 months.
Are you saying David that whatever month a sole trader's business tax year ends,
the 5 years and 10 months kicks in from the following 31st March (where does April 5th fit in?) and the five years kicks in from the 31st January in the following calendar year (the filing deadline)?
Elderly said:
Actually my thread title didn't have a '?' after it but a '!' and the above point is what I was trying (obliquely ) to make.
However, I then got myself rather confused because I had always thought that the HMRC tax year was to April 5th and try as I might I couldn't reconcile that date with the 31st January, using 5 years and 10 months.
Are you saying David that whatever month a sole trader's business tax year ends,
the 5 years and 10 months kicks in from the following 31st March (where does April 5th fit in?) and the five years kicks in from the 31st January in the following calendar year (the filing deadline)?
Basically yes - the 5 years and 10 months is actually 5 years 9 months 25 days but lets not be too worried about that! As you say, its 5 years from the filing deadline for that years tax return.) to make.However, I then got myself rather confused because I had always thought that the HMRC tax year was to April 5th and try as I might I couldn't reconcile that date with the 31st January, using 5 years and 10 months.
Are you saying David that whatever month a sole trader's business tax year ends,
the 5 years and 10 months kicks in from the following 31st March (where does April 5th fit in?) and the five years kicks in from the 31st January in the following calendar year (the filing deadline)?
PM me if you need anything else.
David
.I usually tell my clients to hang on to their records for 8 years. That usually makes sure that they won't get rid of stuff prematurely.
These days, you can keep a lot of stuff electronically so you can get rid of original paper records as long as you have a valid electronic copy on your system - and you have adequate and robust backup procedures.
These days, you can keep a lot of stuff electronically so you can get rid of original paper records as long as you have a valid electronic copy on your system - and you have adequate and robust backup procedures.
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