This problem comes up a lot here at school. I am asked at least 3 x a week as there is lots of confusion from the “real world” amongst businesses. Browse the Best info about us import data.
The answer is it depends…
If you only complete a Self Assessment Go back each year due to having a firm car or other job benefits, you should keep paperwork relating to your state and expenses for 2 decades. HMRC has a full year following your filing deadline to open an inquiry into your affairs. And so for the tax year only ended on 5th Apr 2008, you need to keep these documents until at least April the year 2010.
However, if you are a business owner, the actual records need to be kept no less than 6 years but ideally longer. For example, if your accounts end is 30th 06, your 2008 Personal Assessment will include your trading accounts information for the year finished 30th June 2007. Therefore paperwork for that year operates from the 1st July 2006 onwards. You should realistically consequently keep those records till at least April 2015.
I recommend people keep as numerous years as possible because you never know when they may be helpful. I know we are told through all quarters that Identification Fraud is rife and will be prevented by shredding everything the minute you receive this. Still, a lack of essential data during a complete tax Analysis can undoubtedly make a defense against HMRC’s proposed additions difficult.
If you are thinking of disposing of company records, I would strongly recommend a person take advantage of micro-fiche techniques whenever possible or keep endless copies of your paperless office (as I do) so that almost all possible information is saved in a way you can get to it. Then you can undoubtedly shred with confidence, knowing you can answer still probing inquiries quickly. In addition, most modern micro-fiche companies and paperless office methods allow searching of docs, so tracking things along is simplicity itself.
For anyone concerned about what happens if your organization’s records are lost…
Missing records have been a problem considering that time began. Sometimes, losing is genuine, and documents are ruined in a fire or flood. However, the “loss” is often a smokescreen because the business person thinks they might outsmart HMRC by proclaiming the records are missing.
HMRC has lots of data sources they can access during these situations, including digging as part of your bank accounts when the statements are generally lost (have you just about any idea how much the banking companies now charge for each affirmation HMRC ask for? between £5 and £25 each relying on how far back they are needed), looking at your lifestyle to get a deal with on how much money spent, interest information, dividend details, etc.
Without records, research becomes much easier for HMRC because you cannot provide almost any rebuttals to assumptions they create about your financial affairs. As a result, other investigations always end up with a way higher settlement than if all the records are available.
Consequently… try hard not to lose these individuals – they are worth their weight in gold instructions literally. Micro-fiche them, scan them, copy them, and keep them safe as best you can, so if the originals do head out AWOL for any reasonable instructions, then it is no big cope.
I hope this clears up a little confusion about business records for you.