Whether you’re self-employed or you’re running a standard business, it’s important to keep certain documents for a set amount of time. Tax documents for HMRC are some of the most important.
Within your office storage units you need to have everything organised and secure, because if not, and HRMC come knocking for an audit, you’re going to find yourself in very hot water indeed!
Most people who fall foul of such issues do so because they aren’t aware of what they need to keep and for how long. They might purchase some new white office furniture in their office revamp, and not remember to keep receipts - this is an expenditure!
To give you an idea, self-employed people should keep records of sales, income, and expenses, and information pertaining to VAT as a basic, and these should be kept for five years after the end of that relevant tax year. Employers must keep a wide variety of information, but PAYE for employers is one of the most important. This includes amounts paid to staff members, how much has been paid to HMRC, sickness and leave, tax codes, and any benefits or expenses, which are taxable. This should be kept for three years after the end of the relevant tax year. It’s a good idea to invest in quality office storage methods, to keep everything organised.
Finding the best way to maintain records for your business is vital, whether electronic or paper based. Do you have any good ideas for record keeping on tax issues? Drop us a line on Facebook and let us know.