How long do I need to store my records?

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The Inland Revenue (now HMRC) gives guidelines on this, and says that for self assessment returns you need to keep your records for 5 full years after the latest date for filing the return. But for businesses you will need to keep them a bit longer: for sole traders or limited liability companies, you should keep the records of accounts, expenditure and receipts for at least 6 years, not including the year you are in. For VAT records also you will need to keep your records for a minimum of 6 years.

Many people find that the best way to organise this is to mark files and boxes which you put into storage with a “throw out date”, so that when that date arrives you don’t need to re-check and you can just dispose of these old files and papers.

Some people recommend keeping records for longer, because you may need them when making a claim for one of the longer-tail tax reliefs. For example for capital allowances, rollover relief or capital gains taxes you will often need records going back significantly further than 6 years. In this case, though, it is not minor items such as train tickets and petrol receipts you should keep, but substantial receipts for property and professional costs and any building works you have done.