Record Keeping

When Self Assessment was introduced in 1996 one of the most important features of the legislation was the requirement to keep records from which to prepare your Tax Return. Prior to this there was no legal requirement. Broadly, anything you may need to complete your Return should be retained such as:

• P60 - if you are paid as an employee.
• P11D - if you receive expenses payments and benefits as an employee.
• Details of interest paid on bank and building society accounts and dividends paid on shares.
• If you are self employed or run a business you should have records of income received and expenses paid.
• Records of any payments made under Gift Aid and/or into a pension scheme.  Documentary evidence is useful.
• If you claim expenses from your church you should keep copies of any claims you make.
• You should keep a comprehensive business mileage log for mileage whether or not it is claimed back.  Such a log should record the date, where the journey was made and the mileage travelled.  It can also be useful to record the reason for the journey and whom you went to see.
• In respect of expenses on which you wish to claim tax relief please keep receipts.

The above list is by no means comprehensive and, if there is any doubt, our advice is retain as the legislation does not specify in detail the type of records to be kept. Please note there can be penalties for failing to keep or preserve records.

It is highly likely that, should a Tax Return be the subject of a Revenue enquiry, they will require sight of some or all of the records that were used to complete the Return.

There are strict time limits for the preservation of records which are as follows:

Non business records the later of

• 31 January following the end of the tax year
• the completion of an enquiry
• the day on which the enquiry window closes.

Business records the later of

• 31 January five years after the end of the tax year
• the completion of the enquiry
• the day on which the enquiry window closes.

If you require any assistance with record keeping you should not hesitate to contact this office.