What is a reasonable time to keep documents

[fathippy]

...only I am starting to run out of space. I know the legal requirement is something like 6 years all in, but has anyone known there to be questions asked about eg 4,5 years ago when accounts have been filed on time and accepted and nothing is amiss?

 

[David Griffiths]

It's very very rare - but knowing your luck . . . .

You could scan it. There are firms that will do this for you. That costs - not necessarily a lot.

If you scan new stuff as it comes in, that doesn't take long and you won't be adding to the problem which will eventually disappear.

 

[internetspaceships]

As David said- it's pot luck mate. You'll get rid of ones from 6 years ago and you'll get nailed with queries by an inspection.

Personally I stick to 6 years even though I now have 2 pallets full of paperwork!

End of 2012 though and this drops to 1 *grins*

 

[cheaper accountant]

I agree with the previous comment and I would always advise clients to retain documents (this can be in an electronic format) for at least six years.

 

[MyAccountantOnline]

...only I am starting to run out of space. I know the legal requirement is something like 6 years all in, but has anyone known there to be questions asked about eg 4,5 years ago when accounts have been filed on time and accepted and nothing is amiss?

Probably about twice in 27 years in practice to answer your question, but I wouldnt risk it.

 

[Philip Hoyle]

I always advocate a "weeding" system rather than this idea of just chucking everything away after an arbitrary date.

For some documents, it wise to keep them (or a scan) almost forever - and certainly longer than 6/7 years. In this category, I'd put the likes of purchase invoices for assets (i.e. vehicles, equipment, etc) which often last longer than six years - for me, I'd regard the 6/7 years requirement as starting from the date the equipment or vehicle was sold or scrapped, rather than date of purchase. Same applies for paperwork concerning the purchase of property or a business. Also any long term contracts with customers or suppliers, i.e. the kind of contract that you sign once to cover the lifetime!

At the other end of the scale, I wouldn't lose sleep over minor expense paperwork being disposed of earlier than 6/7 years, i.e. petty cash, fuel receipts, stationery, etc. My criteria would be individual receipts of very low value, i.e. under £25 or where the record of the purchase is shown elsewhere, i.e. on a bank statement or credit card statement if paid by card.

For "normal" trade invoices, i.e. invoices to customers and from suppliers, then yes, the 6/7 year should be adhered to.

As for credit card and bank statements, both business and personal, I'd really try to keep them as long as possible - maybe more to around the 10 year mark.

I say all the above from 29 years of experience. Generally, as time passes, tax inspectors only look at the big things. Even if you're being investigated and they start looking at earlier years, they're unlikely to ask for your fuel receipts from 5 years ago. But, I do know of instances (one personally) where having proof of purchase from years ago results in free replacement or repair - i.e. where some equipment has been proved to have a safety or design flaw. It's not always for tax reasons that you may need the original paperwork.

So, I'd just weed it out, say once a year, with the aim of having a single file (or small box) to keep long term for each year. Each year, throw a little bit more away from every year. Of course, you could set up your current filing system into categories so that you don't have to go through it again - i.e. one box to chuck in 7 years, another box to chuck after say 4/5 and another to keep permanently.

But as said above, maybe better to start scanning stuff now so that you can safely shred it today and at least your piles of archives won't get any bigger.

 

[QuickHomeBuyers]

Once the document is scanned in your drive, I don't see why one would want to remove them, they don't cost any money.

Whilst you are at it, make sure you have atleast two off site backups.

10GB could store two pallets of documents easily.

 

[Gabbalot]

Scan and store on a cloud. Rent a storage locker if you are running out of space if you need to keep hard copies.

But like everybody said do keep them for at least the 6 years.

Sent from my GT-I9100 using UK Business Forums

 

[brownkane]

Definately keep them for 6 years. Scanned copies will solve the storage problem and if you start doing this as you go along from now onwards, this will make it easier. Make sure you back it all up to at least two different sources, in case of system failure. Through experience, small expenses from 5/6 years ago can be asked for and although this is generally unlikely it has happened.

Debbie
oakmanoraccountancy.com

 

[Frazer @ Receipt Bank]

As you say, the legal requirement is six years, and it is probably best to store documents throughout this period.

If you do need to save physical space then scanning is a good solution. There are plenty of good products for cloud storage including iCloud, Dropbox or Evernote. These will host all document types. My company - Receipt Bank - also offers a similar service but we only specialise in receipts and invoices.

 

[pawankalyan]

6 years is compulsary

 

[David Griffiths]

Actually, the deadline isn't six years for every document. For PAYE or CIS documents, for example, the deadline is 3 years from the end of the PAYE year concerned.

For self employed people in business, the retention period is tied to the tax year concerned not the accounting date. So people with accounts made up to 5 April 2009 must retain records until 31 January 2015 - that's less than six years. But people with accounts made up to 30 April 2008 must also keep the records until 31 January 2015 - that's almost seven years.

It's also possible to ask HMRC to agree, in writing, a shorter retention period. I've never known of anybody who has done this, so don't know what their attitude is. I think that the most likely application is for people who have boxes and boxes full of till rolls and the like

 

[Walkol]

As a rule here, we keep everything for 8 years. However, that is only things that are too time consuming to scan (expense forms with little receipts attached everywhere, petty cash records etc etc). Everything else gets scanned and kept indefinately, with the originals kept till the audit for that year is done (just so we have hard copies handy), then shredded.