A question about keeping bussiness account records.

[CHJ]

As one of the executors of a will I have been through all the probate and general finance settlement.
The person in question was self employed business and we have all the certified accounts up to date including those associated with closing the business which we understand should be kept for seven? years.

Does anyone know if we need to keep all the associated bills, receipts, invoices etc. associated with those annual accounts or is keeping the accountants certified accounts that were presented to the tax authorities sufficient.

The difference in volume is considerable.

 

[paulm]

I believe you should keep all the supporting records too Chas.

 

[Doug B]

Yep I believe you have to keep everything but if they weren't VAT registered I believe they only have to be kept for 5 years

 

[Roughcut]

Yes as far as I'm aware all receipts and invoices should be kept in support of the submitted certified accounts for the period stated by HMRC.
Which I thought was 6 years, but I might be proven wrong on that one.
I would advise a call to HMRC for clarification.

 

[CHJ]

Thanks Paul, that's what I suspected, it's just that several filing cabinets worth as opposed to just one draw full is a pain to store and becomes yet another chore to slowly whittle them down each year, and an unnecessary reminder of the persons passing for the family member that will have to do it. Currently got a stack of heavy boxes as big as a large fridge freezer that's taking up storage space.

Thanks Doug, he was VAT registered.

 

[jpt]

This is from the web by a tax profesional talking about the death of a self employed person, I dont know how accurate it is so it would be worth calling HMRC to check.

In the case of a deceased person no income tax assessment can be raised by HMR&C after the third anniversary of 31 January following the end of the year of assessment in which the taxpayer died.

john

 

[AJB Temple]

There is no law which says you must keep physical records. They can be electronically scanned and retained digitally.
The retention is actually governed by CA 2006. This is a link (one of many to simple guidance). http://accainpractice.newsweaver.co.uk/ ... c1abzhqml9

I run a business with 50 staff, tens of thousands of customers and a lot of transactions. We keep almost no paper. Everything is either originated electronically or scanned upon receipt.

Personally, (and I am speaking as an ex professional) unless the business was at the cutting edge of tax avoidance, profitable and quite large, I would keep the minimum amount of records. Box up what you do keep and place in the cheapest local storage facility. Storage costs borne by the estate.

 

[Paul200]

Yes as far as I'm aware all receipts and invoices should be kept in support of the submitted certified accounts for the period stated by HMRC.
Which I thought was 6 years, but I might be proven wrong on that one.
I would advise a call to HMRC for clarification.

You're right about 6 years but most people keep them for 7 years 'just in case'. Having retired and moved to a smaller house we have boxes of records crammed anywhere they'll fit. I try not to wish my life away but as each tax year ends and another batch of boxes go up in smoke I have a wee celebration! Only four more to go =D>