Blog.
Accounts made easy.
Keeping your pay and tax records
How to keep your records?
Currently there are no rules for Self Employed on how you must keep your records, however this could change as soon as 2024 when Making Tax Digital comes into force for the Self Employed. Currently you can keep the hard paper copy, digitally process them or use a software program such as Xero.
HMRC can charge you a penalty for inaccurate accounts.
Lost or destroyed records
Try to keep as many copies as you can. This is where using Xero is advantageous. Snapping a photograph of all your receipts there and then and sending them straight to Xero really does relieve all the year end fuss that business owners find when their paperwork and receipts are shoved in a drawer until the end of the year. Do you find that when it comes to the end of ther year you are scratching around in the bottom of your bag for all your receipts?!
If you cannot prove your tax claim you may find you have to pay interest and penalties as you cannot prove your figures.
How long do I have to keep my business records?
How long does depend whether you sent your return on time; however if you have submitted your return on time then 22 months after the end of the tax year the tax return is for.
For example;
If you've sent your 2020/21 tax return onlne by 31st January 2022, you will need to keep your records until at least the end of January 2023.
Tax returns that were submitted late will need to be kept for at least 15 months after you submitted the return.
