How long do I need to keep my tax and accounting records?

News

We have recently been asked by a number of people how long records must be kept, so we thought a quick reminder would be appropriate:

Individuals

Tax and accounting records must be retained as follows:

  • People carrying out a trade profession or business must keep records until the later of the following:
  1. Where the return is for a tax year, the 5th anniversary of the 31st January next following the year of assessment. For instance, records for the year to 5th April 2015 must be kept for 5 years from 31st January 2016, ie 31st January 2021.
  2. Where the return is for a period that is not a tax year, the 6th anniversary of either:
  1. The completion of an enquiry into the return; or
  2. The day on which the enquiry window into the return closes without an enquiry being opened
  • People not carrying out a trade, profession or business must keep records until the later of the following:
  1. The first anniversary of the 31st January next following the year of assessment;
  2. The completion of an enquiry into the return; or
  3. The end of the day on which the enquiry window closes
  • PAYE & NIC records should be kept for 3 years from the date that they were created

Companies

Tax and Accounting records should be kept for a minimum of 6 years from the date that the records were made. These records include:

  • VAT invoices sent & received
  • Documents relating to supplies to & acquisitions from both other EU states and non-EU states including all import & export documentation
  • Documents supporting special VAT treatment
  • Bank statements, cheque books, paying-in books, cashbooks, & other accounting records

Documents relating to SDLT should be kept until the latest of:

  • The 6th anniversary of the effective date of the transaction
  • The date on which an enquiry is completed, or
  • The date on which the window for opening an enquiry closes

Records concerning the purchase of own shares, copy Board minutes & resolutions, and copies of shareholders meetings should all be kept for 10 years

Directors service contracts should be retained for 1 year from the termination of the contract

All other records should generally be kept for 6 years from the date of creation.

PAYE

Maternity pay records and sickness pay records should be kept for a minimum of 3 years from the end of the tax year in which the payments were made. With a few other small exceptions, all other records should be kept for a minimum of 6 years from the end of the tax year to which they relate.

General

Remember, paper makes an excellent loft insulation, though care should be taken to keep away from sources of ignition.