How long to keep records for self-assessment tax?

tyllwyd

I've been self-employed for about seven years, and I'm wondering when my earlier tax returns will go past the time limit when they might be investigated by HMRC so that I could throw them out (or more likely, stick them in a box in the attic!) I'm a sole trader, not registered for VAT and no employees or company car or anything complicated like that.

I started work in May 2000, so my first tax return must have been for 2000/01, filed in January 2002. My understanding was that when you file a return, the Revenue have a year in which they could ask to review it, and if they found problems they could go back seven years. So now that I've filed my return for 2006/07 (deadline next January), has this first return fallen out of the system yet?

Mikeyorks

Direct from the horse's mouth :-

http://www.hmrc.gov.uk/pdfs/sabk4.htm#a2

tyllwyd

Brilliant, thank you.


From the link you gave, say
"How long must I retain my records?
For businesses that are not limited companies, the basic requirement is that normally records must be retained for five years from the 31 January following the tax year for which the tax return is made. For example, for the 2002 tax return sent to you on 6 April 2002, to complete and send back to us by 31 January 2003, records must be retained until at least 31 January 2008."

So I guess that if my first tax return was sent to me in April 01, I have to keep those records for five years from January 2002, which I make to be January 2007, so I can safely get rid of those records if I want. Thanks!

Mikeyorks

I've just spent the last two days sorting out my son's overdue Council Tax (recently ex-student in a 4 share - so as bad as it gets) and some fraudulent transactions on his Bank account ...... so regret I'm a bit brain dead.

But in my numb state .... your last para looks OK!;)

Murdina

Leaving aside the legal requirements, as an ex HMIT, can I just suggest that whilst you might bin receipts and invoices, keep anything that might evidence major transactions eg in property, cash gifts or similar whether in or out of the business. In a worst case scenario, HMRC can go back 20 years in an enquiry and if they raise difficult questions about your means in the past you might struggle to prove things without for example some bank statements. (I am a terrible horder as a result, but it paid off when I was burgled and had to provide evidence to the insurers!)