Let’s Break This Down Together...
Worried you might be throwing away something HMRC expects you to keep? Knowing what to save (and for how long) can feel like a guessing game.
This guide explains exactly how long to keep records for Self Assessment, what documents you need, and what changes if you run a business.
It’ll help you stay compliant, avoid penalties, and keep things stress-free at tax time. Let’s find out.
What Tax Records Do You Need to Keep?
For Self Assessment, HMRC expects you to hang onto quite a range of documents. These include all your income evidence like invoices, receipts, contracts, and other important records. Note: All details should be accurately recorded to ensure compliance and support any future review by HMRC.
You’ll also need expense receipts, records of purchases, VAT records if you are VAT registered, bank statements, and accounting records. Documentation of any assets you’ve bought or sold is essential too, including records for equipment and machinery with long-term use.
If you are an employer, you must keep PAYE records, including salary and deduction details, for at least three years from the end of the tax year. If you employ staff, it’s important to keep comprehensive records for employees, as employers are responsible for maintaining these documents.
If you use a vehicle for business, keep those mileage logs. Property income? Maintain rental agreements, maintenance receipts and mortgage statements.
To keep your records organized, maintain an account or system for storing important records and ensure easy access, whether digitally or physically. Regularly review your records to make sure everything is up to date and nothing is missing. The benefit of this is that it makes tax time easier, reduces stress, and helps avoid penalties.
How Long Should You Keep Self Assessment Records in the UK?
The standard rule is straightforward: keep your Self Assessment records for at least 5 years after the submission deadline of the relevant tax year. It is essential to keep your records for the full time frame required by HMRC to ensure compliance and avoid penalties.
In practical terms, this means 6 years after the end of the tax year in question. For example, for the 2022/23 tax year, you’d need to keep records until 31 January 2029, which is 6 years after the return has been submitted and filed.
HMRC accepts both physical and digital records. Those smartphone receipt photos are perfectly valid if they’re clear and complete. Keeping your records helps with the process of completing and submitting your tax return, as you will need to refer to them when filling out your Self Assessment form.
When submitting your Self Assessment form, it is important to complete it accurately and confirm that all figures are correct before submission. This helps ensure you are paying the correct amount of taxes and can show how much tax has been paid if HMRC requests evidence.
Remember, the clock starts ticking from the 31st January deadline, not when you actually submitted your return. Keeping your records for the required time frame supports the process of completing, submitting, and filing your tax return, and helps confirm your compliance with HMRC requirements.
