How long to keep ex clients records?

[ratiobox]

Lost a client 4 years ago and they've asked for some info back to 2018.I thought payroll was 3 years but accounts and tax 6 plus current. Is that correct?
If CIS, would that be the longer of the two?

 

[Mark T Jones]

Lost a client 4 years ago and they've asked for some info back to 2018.I thought payroll was 3 years but accounts and tax 6 plus current. Is that correct?
If CIS, would that be the longer of the two?

It's alarming that you dont know this, given what you do

 

[DWS]

Lost a client 4 years ago and they've asked for some info back to 2018.I thought payroll was 3 years but accounts and tax 6 plus current. Is that correct?
If CIS, would that be the longer of the two?

Lost a client 4 years ago and they've asked for some info back to 2018.I thought payroll was 3 years but accounts and tax 6 plus current. Is that correct?
If CIS, would that be the longer of the two?

6 and 3 is correct from the end of the last year you dealt with.
CIS is usually 6 years for the Contractor, so this would depend on which services you provided.
In this digital age there seems no reason why you would not have records going back further than this.
But I would be more concerned about why an ex client is looking for data from so far back.

 

[ratiobox]

6 and 3 is correct from the end of the last year you dealt with.
CIS is usually 6 years for the Contractor, so this would depend on which services you provided.
In this digital age there seems no reason why you would not have records going back further than this.
But I would be more concerned about why an ex client is looking for data from so far back.

someone suggested charging for the past date

 

[DWS]

someone suggested charging for the past date

Not a clue what you mean by that!

 

[ratiobox]

Not a clue what you mean by that!

Someone mentioned to me that if a client requests historical data after six years, it’s reasonable to charge a fee for retrieving it.

 

[DWS]

Someone mentioned to me that if a client requests historical data after six years, it’s reasonable to charge a fee for retrieving it.

That’s your prerogative I suppose, seems a bit petty to me if you have the information readily available.
If not then just say you no longer hold the data, or charge them.
I personally would not have a problem supplying an ex client with a reasonable information request free of charge.
I think there is a big problem that some accountants charge for every little thing they do rather than actually providing a service for their clients.

 

[ratiobox]

That’s your prerogative I suppose, seems a bit petty to me if you have the information readily available.
If not then just say you no longer hold the data, or charge them.
I personally would not have a problem supplying an ex client with a reasonable information request free of charge.
I think there is a big problem that some accountants charge for every little thing they do rather than actually providing a service for their clients.

Yes, I agree with you. It's harsh to charge for every little thing.

 

[Elliot Green]

Lost a client 4 years ago and they've asked for some info back to 2018.I thought payroll was 3 years but accounts and tax 6 plus current. Is that correct?
If CIS, would that be the longer of the two?

Have you considered, in accordance with the terms of engagement, whether these are property of the Company or property of the firm?

 

[Tables Force]

Lost a client 4 years ago and they've asked for some info back to 2018.I thought payroll was 3 years but accounts and tax 6 plus current. Is that correct?
If CIS, would that be the longer of the two?

That is how long THE COMPANY (your ex-client) needs to keep their records for.

As for how long YOU need to, or indeed are ALLOWED to, keep them comes down to your privacy policy/LoE (its between you and your (ex-)clients, unless client is an individual in which case GDPR could be relevant).

 

[fisicx]

If they are an ex-client why do you still have the documents? If they aren’t paying for storage you probably shouldn’t even have them.

 

[DWS]

If they are an ex-client why do you still have the documents? If they aren’t paying for storage you probably shouldn’t even have them.

Accountants are required to keep hold of records for both existing and ex clients, normal practice is 6 years.

 

[fisicx]

Accountants are required to keep hold of records for both existing and ex clients, normal practice is 6 years.

OK, but should you charge storage for this service? I know solicitors box everything up and put the files in secure storage and you pay for this service.

As an aside, my accountant doesn't keep any paper records. It's all scanned and the originals returns to the client.

 

[DWS]

OK, but should you charge storage for this service? I know solicitors box everything up and put the files in secure storage and you pay for this service.

As an aside, my accountant doesn't keep any paper records. It's all scanned and the originals returns to the client.

I do the same, any paper records are scanned and returned to client so all data is digital, no I would not charge for storage of digital files.
Keeping the records for 6 years is just as much for an Accountant as the client in the event of a HMRC enquiry.

 

[Elliot Green]

If they are an ex-client why do you still have the documents? If they aren’t paying for storage you probably shouldn’t even have them.

A client’s cheque for storage secures a cupboard, not a claim of ownership; it is rent, not right.

Financial agents frequently commingle company records within their ledgers and workings. This is a matter often of efficiency; as to disentangle the two mid-engagement would likely be distracting and disruptive.

It can be a property law spectacle to decipher who owns what, see cases such as Chantrey Martin & Co v. Martin or Green v Chubb. Care is required over such matters, save if the engagement letter has shown the foresight to resolve the matter right at the start.

 

[Tables Force]

Accountants are required to keep hold of records for both existing and ex clients, normal practice is 6 years.

Any reference for this requirement?

 

[DWS]

Any reference for this requirement?

Not to hand no, but it is something I would have have looked into when I first started my practice and then adopted, it would have come from one of the Governing bodies, possibly ICAEW, not sure but I also seem to remember that AML regs also mention document retention.