Book-keeping

6th February 2016

How do I keep my business records?
Have you just started in business? Are you at the stage of wondering what bookkeeping records you should keep?
The law states: “That if you have to send H M Revenue and Customs a tax return you must keep all records and documents you need to complete the return. If you don’t have adequate records or you do not keep them for long enough, you may have to pay penalties”. These penalties can be up to £3,000, so it is worth getting it right on day one.
So what are adequate records? How long should you keep them? This depends on the legal status of your business:

  • Sole trader/Partnership – You must keep a record of all business income and expenses and they should be kept for 5 years after the filing deadline of the return.
  • Limited Companies – You must keep a record of the company assets, liabilities, income and expenditure. The records must be complete and up to date and must be kept for at least 6 years following the end of an accounting period.

The above are the pure basics for the record keeping, there are lots of other factors that will affect the records you keep. As well as keeping adequate records you need to keep all original documents, however, these can be scanned and kept electronically.
If you have any queries at all on how to keep your records and/or how to keep your accountant’s bill down by keeping them in an orderly fashion, then please do contact us for a free initial consultation.



 
Other items in Blogs
 
Keith Day
7th February 2019 Businesses urged to prepare for post-Brexit Customs

HMRC is urging VAT-registered UK businesses which trade exclusively with the EU to be prepared for a no deal Brexit.   In a letter sent to 145,000 affected businesses, HMRC explains changes to Customs, Excise and VAT procedures in the ‘unlikely event’ that the UK leaves the EU without a Brexit deal.   HMRC’s letter…

Read More »

Adrian Mackenzie
7th February 2019 Beware of pension investment scams

The Insolvency Service has urged individuals saving for retirement to protect their pension pots from criminals and ‘negligent trustees’.   Research carried out by the Service found that criminals use a range of tactics to convince savers to part with their funds, including persuading individuals to access their pension and invest in unregulated schemes.  …

Read More »

Victor Courdelle
7th February 2019 MTD for VAT – pilot extended to all eligible businesses

  HMRC has extended its Making Tax Digital for VAT (MTDfV) pilot scheme to all eligible businesses. For most businesses, compliance with the regulations is mandated for VAT return periods beginning on or after 1 April 2019. However, MTDfV for some ‘more complex’ businesses has been deferred until 1 October 2019. This deferral applies to:…

Read More »

Stephen Malkin
1st February 2019 MTD for VAT: Which Bridging Software?

As we approach the 1 April 2019 deadline for the introduction of MTD compliant VAT submissions, many businesses will at last be focusing on what solution they should adopt.   If their current bookkeeping system does not already have an upgrade that automatically provides this new functionality, they will be considering adopting ‘bridging software’.   Looking through…

Read More »

Ian Piper
18th January 2019 CryptoCurrency Taxation: HMRC close loophole?

HMRC are not known for being ahead of the curve, so trying to find official guidance on how exchange gains from selling bitcoin, and other crypto currencies, is expected to be self-assessed and taxed, was always going to be ‘problematic’. At the time of first researching this, the latest HMRC guidance was published in 3…

Read More »

Peter Brown
13th January 2019 5 things you need to know about Making Tax Digital

  Making Tax Digital (MTD) is the hot topic this year. It’s one of the most fundamental changes to the UK tax system since the introduction of self-assessment. From April 2019, VAT registered businesses with a turnover of over £85,000 will be required to keep records using software approved by HMRC.  We have condensed the…

Read More »