How Long Should I Keep Accounting Records?
His Majesty’s Revenue and Customs (HMRC) advises that limited companies should keep their records for at least 6 years. From the end of the financial year they relate to.
This requires you to legally keep your business records for a minimum of 5 years. Usually after the 31st of January. The deadline of the tax year If you are self-employed, and 6 years if you are VAT registered.
This is longer when; (1) your documents show a transaction covering more than one accounting period, (2) you or your company purchase equipment or machinery that will last you a very long time, (3) Your tax return is submitted late, (4) compliance checks into your company tax return, have been enforced by HMRC.
Keeping your invoices, and bank statements manually has become a practice of the past. Advancement of cloud based software means company records can now be stored digitally. A cheaper, and more greener way of storing data. This may sound like a long time to be keep paperwork in storage. However, with the new software we have in place, your records are held in a safe, online archive. Only accessible by us, and by you– at any time, and any place.
We personally know how beneficial digital records are to our clients, especially from 16-17 years in the accounts industry,. Having boxes of invoices and receipts stored in your loft can be frustrating, and costly.
Whether you are in Cardiff or anywhere in the world, Accounted For can view your documents regularly and advise you on how to best manage your documents.