This means you must be able to produce a printed, legible copy of the document for them upon request. Digitizing your records is also a great way to avoid accidentally tossing them in a move or an overzealous fit of spring cleaning. We recommend scanning every record and receipt in your business, tagging it with a descriptive name, and archiving it forever.
If you do end up going the paperless route, remember to keep a backup copy of your documents in a secure second location, like a password-protected hard drive, or a secondary cloud storage service. Your Bench subscription includes unlimited document storage, which means you can keep every receipt, invoice, or IOU in the same place as your bookkeeping.
At year-end, your CPA or tax professional can review your documents and completed financial reports side-by-side, making tax filing a breeze. Learn more. Hold up. Before you toss them, double check to see whether anyone else you do business with might need them. Creditors, business lawyers, and insurance companies all sometimes require you to keep records longer than the IRS does. This is really just another benefit to keeping digital records. Instead of worrying whether you should be keeping or getting rid of them, you can archive them permanently.
Or even better, digitize it. We're an online bookkeeping service powered by real humans. The reason for this is because the end of January is the deadline for submitting a tax return for the previous tax year. No — HMRC can launch a tax investigation on any person or individual for any return over the previous two decades if they suspect tax avoidance. For that reason, you may wish to store all your business records for longer than the recommended five or six years.
Surprisingly, there is a way to claim for expenses without having a receipt. The overall goal is to satisfy the HMRC inspector if they ever start asking questions.
The obvious way to claim without a receipt is to still own the item you bought and to give some accurate information about the time of purchase and how much it cost, maybe even a bank transaction.
Sensible estimates can even be accepted in some situations. It is best to speak with a trusted UK accountant if you want more information and guidance on claiming expenses without receipts. It can happen and does happen more than you and HMRC would like. It is better to let them know before they ask you to prove your affairs in an investigation, as it shows honesty, cooperation and could work in your favour over time.
Not keeping your records for long enough — you must keep everything for at least seven years. Rating form How helpful was this information? Additional comments. Related content More More. Test yourself on the difference between fringe benefits tax and employee allowances. Get started.
Making tax time easier. See how. News for business. Read all about it. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction. Keep records indefinitely if you do not file a return. Keep records indefinitely if you file a fraudulent return. Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later. Are the records connected to property? What should I do with my records for nontax purposes?
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