A general guide to keeping records for your tax return

RK BK1

Contents
Introduction

3

Why good record keeping helps you

3

Records you should keep

4

How long to keep your records

4

If you keep your records on computer

5

What you should do if your records are lost or destroyed

5

11

3

What happens if you don’t keep adequate records

If you run a business or work for yourself

Examples of the types of records you will need to keep
5
If you claim personal allowances, other deductions or reliefs
If you are an employee, a director, or an office holder
If you receive any form of social security benefits or a UK pension

5
6

Common points of difficulty

14

Motor vehicles and other assets used for business and private purposes

14

Claiming losses for capital gains purposes – time limits

14

Examples of records recommended for different types of business
15
Retail shop

15

Subcontractors in the construction industry 16

Manufacturing firm (limited company) 17

9

More information

18

If you receive interest, dividends or other income from UK savings, annuity investments or trusts

9

Your rights and obligations

19

If you are in a share scheme or receive share-related benefits

9

Putting things right

19

If you have other income in the UK or foreign income or gains

10

If you have capital gains or claim capital losses

10

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2

Introduction
This guide gives you general advice about what records you need to keep for tax purposes and how long to keep them. It gives some examples of typical records you may need if you’re:
• completing a Self Assessment tax return
• making a claim, for example, for tax allowances or tax credits
• keeping business records
• employing others
• completing a Company Tax Return.

Why good record keeping helps you

Whatever records you keep, it makes sense to organise and keep them in an orderly fashion. This will help you and your accountant
(if you have one) as well as us, if we need to ask you anything.
If you’re starting a business, help keep it on the right track by keeping good records from the beginning and you’ll find it easier to keep your affairs up to date.

Records you should keep You should keep any records and documents that you have received, or have prepared, that will be used to complete entries in your Self Assessment or Company Tax Return, or your claim form if you’re claiming benefits or allowances. Most of these records will be from the tax year or accounting period to which they relate, or soon afterwards.
However, you will sometimes need to refer to records that are already several years old. For example, if you dispose of an asset
(such as land, shares or a valuable chattel, for instance a painting) that you have owned for a long time, you may need to have older records to calculate a capital gain or loss – read If you have capital gains or claim capital losses on page 10 of this guide, or go to www.hmrc.gov.uk/cgt/intro/record-keeping.htm The need to refer to old records can arise in other circumstances, so please bear this in mind as you read this booklet.
You may have already discarded any records relating to events that happened before April 1996, as there was previously no obligation to keep them. It does not matter if you have not kept such items, but you should hold on to any such records that you still have and which may be relevant in future.
For more information on record keeping for companies, go to www.hmrc.gov.uk/ct/managing/record-keeping.htm 3

What happens if you don’t keep adequate records

If we need to check your tax return for any