The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
There is a legal requirement to retain records relating to the self assessment tax return. Although it is the taxpayer who must retain the records, as their agent, it is acceptable for you to retain documents on your files (subject to your internal policy on document retention and data protection).
It is not specified in the legislation in what form the records must be kept (eg electronic records or paper copies). However, there is guidance in the HMRC Compliance Manual on this matter (see below). There is also guidance on the GOV.UK website.
Digital record keeping which will be required under making tax digital (MTD) is discussed at the end of this guidance note.
Even taking into account the time limits for keeping records discussed below, it is still a good idea to advise the taxpayer to retain documents relating to exceptional transactions for a longer period of time. If HMRC suspects that evasion has taken place, it can raise tax assessments going back as far as 20 years. As this is outside of the normal time limits, the taxpayer will find it difficult to defend themselves against such an assessment if the records outside the statutory time limit have been destroyed.
Taxpayers who do not carry on a trade are required to retain records of income and capital gains until the later of:
the first anniversary of 31 January next following the end of the tax year (ie 22 months from the end of the tax year)
the date on which the enquiry window closes (which could be later if the return was submitted late, was issued after 31 October and filed after 31 January following the end of the tax year, or if the return was amended after filing, see the HMRC’s powers to open an enquiry into a return guidance note)
the date on which an enquiry into the return is clo
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Notices of coding are the means by which HMRC notifies both the employee and the employer of the tax code to be applied to the employee’s earnings. There are several types of coding notice, as detailed below. Only one of these types of notice, form P2, is sent to the employee, the others are sent to
Tax professionals will often be asked to provide input into the financial statement work undertaken by audit professionals. This guidance note is intended to give an overview of some of the key issues when undertaking audit work.This note is an introduction only and is written on the assumption that
A ‘pilot trust’ is one that holds a nominal amount of property (typically a small sum of cash) and does not become active until further funds are added later. The later addition is sometimes made on the client’s death by a gift in his Will. The use of pilot trusts in conjunction with Wills became a
Close companies ― overviewMeaning of close companyThe tax rules for close companies are intended to address those companies that are closely controlled (ie by the owners and their families) and therefore could be used to manipulate the tax position of its activities and its investors. Therefore,