What records does HMRC insist I keep

Records needed to comply with HMRC requirements.

Bank statements and detailed description of all transactions.

Petty cash – record of all payments and receipts

Sales and Purchase invoices

Sales and Purchase ledgers

Stock valuation by product at the previous year end

Hire purchase and lease agreements

Wages & salaries – by employee with record of every payment and HMRC deduction.

Benefits records

You should keep any documents relating to:

• social security benefits
• Statutory Sick Pay
• Statutory Maternity, Paternity or Adoption Pay
• Jobseeker’s Allowance

Income from employee share schemes or share-related benefits

You should keep:

• copies of share option certificates and exercise notices
• letters about any changes to your options
• information about what you paid for your shares and the relevant dates
• details of any benefits you’ve received as an employee shareholder

How long you need to keep your records

• As a general rule, you should keep your records for a minimum of six years. However, if you are an employer, you need to keep Pay As You Earn (PAYE) records for three years (in addition to your current year)
• As a contractor in the Construction Industry Scheme (CIS), you need to keep your CIS records for three years (in addition to your current year)