Companies and unincorporated businesses are required to hold tax returns and the relevant business documents relating to them for varying periods of time with individuals filing personal tax returns also having requirements to keep a record of their documentation.

For companies submitting Corporation Tax returns (most likely via a CT600 Return), the corporate body must hold the return and relevant business document for at least 6 years following the end of the chargeable period of account relating to the period of account. Similar rules apply to VAT for which documentation involved in VAT Returns submitted has to be held for at least 6 years. Although these time periods may appear excessive, HMRC have been known to exercise their powers to be able to request documents dating back to 6 years from the VAT year in which the investigation is occurring.

As far as individuals are concerned, the rules relating to VAT are the same. However, individuals submitting a self-assessment without being involved in any trading activity are only to hold records for 1 year following 31st January after the end of the tax year. For unincorporated businesses (sole traders and partnerships) who are required to submit self-assessments, the length of time to hold records is 5 years after 31st January following the end of the tax year concerned.

If you’re concerned about deadlines and administrative responsibilities, contact Cheylesmore Chartered Accountants today to enable us to assist you in your tax affairs and ensure you meet your deadlines.