How many years accounts to keep

A question about : How many years accounts to keep

Hi guys I used to think I had to keep 7 years accounts and have. However, I have just read it's only. 22 months so the 2013-2014 I have just submitted needs keeping until January 2016. Is this true. If so, can I shred all before 2011-2012? Thx in advance guys xx

Best answers:

• Where have you read the 22 months figure? Is it an authoritative source? I keep mine for at least 6 years, they don't take up much room and I'd rather have then and not need them than the other way round. And if shortage of space is a real issue for you, scan them and keep electronic copies.
• I keep everything for six years, then scan before shredding. Better safe than sorry. Some people on here have reported needing information from many years ago.
• Just now on the hmrc website for self assessment ! Thx.
• https://www.gov.uk/self-employed-rec...p-your-records
  You must keep your records for at least 5 years after 31 January of the relevant tax year.
  https://www.gov.uk/running-a-limited...unting-records
  You must normally keep records for at least 6 years from the end of the last company financial year they relate to.
• It isn't strictly 22 months for individuals, details start at Keeping your pay and tax records with a very similar but more extensive PDF version A general guide to keeping records for your tax return. Key points:
  1. "There are no rules on how you must keep records. You can keep them on paper, digitally or as part of a software program (like book-keeping software)." If you scan you need to have both front and back available, not just the front.
  2. "Tax returns sent on or before the deadline ... You should keep your records for at least 22 months after the end of the tax year the tax return is for." "Tax returns sent after the deadline ... You should keep your records for at least 15 months after you sent the tax return."
  3. For capital gains tax you'll need to prove original value so you'll need to hold the records until you sell. For many people this will mean home purchase records being kept for decades.
  Note that HMRC says "at least". It would not be sensible to keep things for the minimum time, particularly if you have them on computer and can easily make backup copies that you can keep for decades.
• Don't forget it can be to your advantage to keep records as long as you can, and certainly longer than HMRC say you need to keep them for.
  If HMRC do open an enquiry, and if they find issues in the last year or two, they have every right to go right back to earlier years. If you've not kept your paperwork, you have no way of defending yourself.
  Also, there are documents you should keep for far longer for other reasons, such as purchase invoices for assets, leases, loan agreements, etc. If you buy a property, you need to keep the original solicitors completion statements etc., for the mortgage, surveyors reports, etc., and all invoices to cover money you've spent on renovating/improving it, all of which come in handy when you come to sell it, 10,20 30 years later.
  Keeping invoices for equipment has certainly come in handy for me. There've been a few things that have proved faulty (design issues) long after the 2/6 year HMRC deadline, when I've successfully made claims for replacement/refund simply because I could prove my purchase!
  Far better to get into the habit of "weeding" rather than throwing everything out. You can safely bin, probably 80% of the paperwork for small irrelevant stuff (using the old 80/20 rule), but should really go through it and pick out the important/big stuff to keep indefinitely.
• Some posters have reported being asked by the DWP to pay back some old loan that they barely remember taking out many years ago. They feel sure it was paid off, but have no records. Others have mentioned needing evidence that they worked for a particular company, others information for insurance companies.
  I agree that some very important papers should never be discarded. As six years' worth of self-employment records fit into one plastic filing box, I scan and shred the oldest year each April.