Keeping Financial Documents????

Gareth83

I remember reading an article in "Men's Health" stating how long you should keep certain financial documents for. Does anyone have any advice?

I understand it is 1 year for bank and credit card statements, 3 months for payslips, 7 years for tax documents.

What else should people keep and for how long??

Mark7799

Bank statements are SIX YEARS

maninthestreet

Payslips need to be kept for far longer than 3 months. I still have payslips from when I started work in the mid-eighties.

Gareth83

but where does one find a list of what is "needed"? Surely the above are just opinions?

payslips are pretty much useless as surely they are superseded by the next payslip and P60's / P45's??

Mark7799

All financial records should be kept for six years since this is the length of time that HMRC can chase you for queries.

Gareth83

Mark7799 wrote: »

All financial records should be kept for six years since this is the length of time that HMRC can chase you for queries.

where do you get that info. from?

eg. receipts for petrol don't need to be kept as they'd show up on bank statements so they can be got rid of every month unless they are of high value

Elaine_Wilson

Gareth83 wrote: »

where do you get that info. from?

eg. receipts for petrol don't need to be kept as they'd show up on bank statements so they can be got rid of every month unless they are of high value

This page from the HMRC manuals shows that many taxpayers can destroy records 1 year and ten months after the end of the year of assessment. So an invoice dated 6th April 2006 can be destroyed on 1st February 2009.

Business records (including rental income and expenses) need to be kept for a further four years.

I always tell clients to keep everything for three years from the date on the document and business records for seven years. That way you are bound to be covered.

Mark7799

Gareth83 wrote: »

where do you get that info. from?

eg. receipts for petrol don't need to be kept as they'd show up on bank statements so they can be got rid of every month unless they are of high value

http://www.lawpack.co.uk/records_in_order.asp
The Inland Revenue can approach you at any time and ask to investigate your affairs from the last six years. If you've failed to keep proper records, you can be fined up to £3,000. The other disadvantage of not keeping your finances in order is that if you've lost any records, you may not be able to prove your expenses and income to the Inland Revenue, resulting in you possibly paying more tax than needed.

I have suggested six years since after that, in most cases, debts are statute barred. You only have to read the bank charges reclaim boards to hear stories of people trying to reclaim bank charges and needing to get details of transactions for the last six years to see the relevance of that comment.

As regards petrol receipts, it's rare these have to be kept once they appear on a statement since this usually gives sufficient information anyway.

Gareth83

exactly, you've just contradicted your original statement of "all financial records should be kept for six years"

I'll see if I can dig out the original article I'm referring to.

Mikeyorks

Seems little point asking advice ..... then contradicting it, as you purport to know the answers!

Which depends on whether you're employed or self-employed. Read the HMRC link ... which covers both eventualities