You are required to keep records of income, expenditure and reliefs claimed. On the income side this means the taxpayer has to keep the documentation given by the person making the payment. In regard of expenses, records are required to support the claim. If they decide to enquire into the return, HMRC wants to ensure that the underlying records to the tax return exist.
Records required for HMRC enquiry
Employees and Directors
- Details of payments made for business expenses (e.g. receipts, credit card statements)
- Deductions and reliefs
- Share options awarded or exercised
Documents you have signed or which have been provided to you by someone else:
- Interest and dividends
- Gift aid payments
- Tax deduction certificates
- Dividend vouchers
- Personal pension plan certificates.
Personal financial records which support any claims or amounts paid e.g. certificates of interest paid.
Records for Business
- Invoices, bank statements and paying-in slips
- Details of personal drawings from cash and bank receipts
- Invoices for purchases and other expenses