A6.204 Keeping and preserving records
The self-assessment legislation imposes a basic obligation to keep records for the purposes of delivering a correct and complete return1. There are time limits for the retention of such records and penalties for non-compliance (see A4.570). For detailed commentary on record-keeping, see E1.205.
For those who carry on a trade, profession or business the records to be kept are specified as2:
'all amounts received and expended in the course of the trade, profession or business and the matters in respect of which the receipts and expenditure take place, and
in the case of a trade involving dealing in goods, all sales and purchases of goods made in the course of the trade.'
Beyond the above, the legislation does not specify the nature of the records to be kept, although HMRC may specify in regulations what records or supporting documents must be kept (supporting documents include accounts, books, deeds, contracts, vouchers and receipts), (see below)3. HMRC has published guidance on this4.
The record-keeping requirements (in TMA 1970, s 12B, Sch 1A and FA 1998, Sch 18, Pt III, paras 21, 22) give HMRC the power to:
• reduce the period for which records must be retained; different reduced
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