Reply to: How long to keep Expense Receipts

[SueEllen]

Hmmm - I wonder why my client (a government department) was so insistent that they needed dispensation from HMRC to do it? It took months of negotiation to ensure that the safeguards were in place, I remember that much

Because they are luddites?

[rmmc]

It depends on what's on the return. For example:

How long must you keep your records?
You must normally keep your business records for five more years after the normal filing deadline of 31 January. This date applies even if you've sent in a paper tax return.

For example, for a 2009-10 tax return filed on or before 31 January 2011, you must keep your records until 31 January 2016.

But if HMRC sent you - or you sent back - your tax return very late, you may need to keep your records for longer. You need to keep them until the later of:

•five years after the normal filing deadline
•fifteen months after the date you sent your tax return

HM Revenue & Customs: Record keeping (self-employed)


Personally, this is why I'd advise keeping everything for at least 6 and possibly longer if you have the space/time to scan it.

I am aware of all the time limit for the record retention. But it seems that term "self assessment" loosely has been used as "self employed" or "business". Employed, self employed, pensioner and other taxable persons have to do "self assessment".

Also "business" term is being used by businesses for self employed, sole trader, partnership and even for the limited companies.

So in my personal view it is incorrect to state that "self assessment" records needs to be kept for 5 years. self employed people need to keep the records for 5 years from the filing dead line. If you are not self employed than you need to keep records for 22 months from the end of tax year. Have a read of your post. You are talking about the business and to keep the record for 5 years than you mentioned 15 months? So what is correct for the business?

I think your post is confusing as I think you are talking about self employed and normal tax payer.

[Wanderer]

I think Clare was referring to after the statutory retention period had expired.

myLTD has a policy of destroying all this stuff as soon as legally possible. That way if it could be used in a negative way, you can point to the company retention policy and deny having it. If it could actually help your situation you can magically find that for some reason it didn't get destroyed as it should have.

[TheFaQQer]

You can bin them once you scanned them. And also you do not need to get permission from HMRC. What HMRC says that as long as you can produce a copy they are happy.

Hmmm - I wonder why my client (a government department) was so insistent that they needed dispensation from HMRC to do it? It took months of negotiation to ensure that the safeguards were in place, I remember that much

[Clare@InTouch]

Are you sure that self assessment record should be kept for 5 years?

It depends on what's on the return. For example:

How long must you keep your records?
You must normally keep your business records for five more years after the normal filing deadline of 31 January. This date applies even if you've sent in a paper tax return.

For example, for a 2009-10 tax return filed on or before 31 January 2011, you must keep your records until 31 January 2016.

But if HMRC sent you - or you sent back - your tax return very late, you may need to keep your records for longer. You need to keep them until the later of:

•five years after the normal filing deadline
•fifteen months after the date you sent your tax return

HM Revenue & Customs: Record keeping (self-employed)


Personally, this is why I'd advise keeping everything for at least 6 and possibly longer if you have the space/time to scan it.

[Clare@InTouch]

why do you need to keep expired certificates?

To show you had insurance cover at the time should anything come back to bite you later. I don't believe it's a legal requirement anymore, it used to be 40 years for Employer's Liability, but potentially best practice.

Employers' liability insurance | Business Link

[diesel]

You should keep copies of insurance certificates indefinitely.

why do you need to keep expired certificates?

[rmmc]

It's different for different taxes. Self assessment for example is only 5. It's easier, and safer, to just keep everything for the maximum as you don't know when you might need them of when they may overlap.

How long should you keep books and records? : Small Business Administration, Legal Advice : BusinessWings.co.uk

Are you sure that self assessment record should be kept for 5 years?

[rmmc]

Indeed - misread her post. Someone I know was advocating scanning them and binning the paper copies before the 6 year retention period, and I didn't read Clare's post carefully enough.

You can bin them once you scanned them. And also you do not need to get permission from HMRC. What HMRC says that as long as you can produce a copy they are happy.

[TheFaQQer]

I think Clare was referring to after the statutory retention period had expired.

Indeed - misread her post. Someone I know was advocating scanning them and binning the paper copies before the 6 year retention period, and I didn't read Clare's post carefully enough.

[Clippy]

Technically, do you not need dispensation for keeping them electronically instead of paper?

I did a project where we were having employees keep their own paper copies, but the company would accept a scanned copy in to pay expenses, and they had to get HMRC permission to ensure that it was above board, IIRC.

I think Clare was referring to after the statutory retention period had expired.

[TheFaQQer]

6 years as per HMRC HM Revenue & Customs: Accounts and records for your VAT

But it wouldn;t hurt to scan them and keep them longer.

You should keep copies of insurance certificates indefinitely.

Technically, do you not need dispensation for keeping them electronically instead of paper?

I did a project where we were having employees keep their own paper copies, but the company would accept a scanned copy in to pay expenses, and they had to get HMRC permission to ensure that it was above board, IIRC.

[Clippy]

6 years as per HMRC HM Revenue & Customs: Accounts and records for your VAT

But it wouldn;t hurt to scan them and keep them longer.

You should keep copies of insurance certificates indefinitely.

Top tip.

[Clare@InTouch]

From Hmrc website, I find, 3 years for expense receipts. Am I missing something ?
HM Revenue & Customs: Expenses and benefits record keeping

How long to keep your records for

You should keep your expenses and benefits records for three complete tax years after the end of the tax year to which they relate.

It's different for different taxes. Self assessment for example is only 5. It's easier, and safer, to just keep everything for the maximum as you don't know when you might need them of when they may overlap.

http://www.businesswings.co.uk/artic...ks-And-Records

[tyut4669]

6 years as per HMRC HM Revenue & Customs: Accounts and records for your VAT

But it wouldn;t hurt to scan them and keep them longer.

You should keep copies of insurance certificates indefinitely.

From Hmrc website, I find, 3 years for expense receipts. Am I missing something ?
HM Revenue & Customs: Expenses and benefits record keeping

How long to keep your records for

You should keep your expenses and benefits records for three complete tax years after the end of the tax year to which they relate.