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Boo
24th March 2013, 23:11
Hi,

Aiui, after 6 years you are no longer required to keep records of business transactions and for that reason an HMRC investigation will not normally go beyond that date. I'm interested to know how the rule is actually applied, is it 6 years to the day, or 6 years from the end of the tax year in March/April, or 6 years from the company tax year end, or what ?

What is the current earliest date before which records need not be kept ?

Thanks,

Boo

malvolio
25th March 2013, 08:13
Hi,

Aiui, after 6 years you are no longer required to keep records of business transactions and for that reason an HMRC investigation will not normally go beyond that date. I'm interested to know how the rule is actually applied, is it 6 years to the day, or 6 years from the end of the tax year in March/April, or 6 years from the company tax year end, or what ?

What is the current earliest date before which records need not be kept ?

Thanks,

Boo
Not unreasonably it's applied from your tax year end, which is when HMRC get sight of what you've been doing. They can then open an enquiry into that tax year and go back six years if they suspect a wrong assessment, or as long as they like (but usually no more than 20) if they suspect fraud or other illegal activity. So in terms of records, you should keep the current and six previous years' data

Jessica@WhiteFieldTax
25th March 2013, 12:32
HMRCs guidance is at: http://www.hmrc.gov.uk/factsheet/record-keeping.pdf

Interesting - as it came up on another thread - is specific confirmation that apart from a narrow range of items, eg P60s, you don't need hard copies. I personally scan **everything** down to £1 parking tickets on receipt and shred. Store it all in the cloud...

My own view is don't destroy anything, scan it, keep it, you never know when you may want something from the past.

In terms of time limits for enquiries, generally its:

~ 4 years without carelessness
~ 6 years with carelessness
~ 20 years with fraud

SALF411 - Enquiries into Tax Returns: time limits for discovery assessments (http://www.hmrc.gov.uk/manuals/salfmanual/SALF411.htm)
HM Revenue & Customs: HMRC compliance checks and enquiries for Corporation Tax (http://www.hmrc.gov.uk/ct/change/problems/enquiries.htm#7)

northernladuk
25th March 2013, 12:38
HMRCs guidance is at: http://www.hmrc.gov.uk/factsheet/record-keeping.pdf

Interesting - as it came up on another thread - is specific confirmation that apart from a narrow range of items, eg P60s, you don't need hard copies. I personally scan **everything** down to £1 parking tickets on receipt and shred. Store it all in the cloud...

My own view is don't destroy anything, scan it, keep it, you never know when you may want something from the past.

In terms of time limits for enquiries, generally its:

~ 4 years without carelessness
~ 6 years with carelessness
~ 20 years with fraud

SALF411 - Enquiries into Tax Returns: time limits for discovery assessments (http://www.hmrc.gov.uk/manuals/salfmanual/SALF411.htm)
HM Revenue & Customs: HMRC compliance checks and enquiries for Corporation Tax (http://www.hmrc.gov.uk/ct/change/problems/enquiries.htm#7)

Sorry if it is included in the links which I haven't had time to read but what, in your opinion, consititues carelessness? Would paying family using class B shares, incorrect income splitting and claiming your 55" TV as a company assett come under carelessness?

Jessica@WhiteFieldTax
25th March 2013, 12:40
Sorry if it is included in the links which I haven't had time to read but what, in your opinion, consititues carelessness? Would paying family using class B shares, incorrect income splitting and claiming your 55" TV as a company assett come under carelessness?

B shares probably not, if disclosed up front.

The telly probably yes.

The alternative view is if you get caught you must be careless :)

Sockpuppet
26th March 2013, 00:05
Is there any benefit in "losing" your records after 6 years and a day. If you're like me and kept everything and the tax man asked for them what would be the harm in saying "er, don't have those".