Independent Contractor Services
Use our Contractor Tax Calculator to find out how much more you could bring home each month. Contact us free on 0800 195 3750 or via email
Contractor tax records - how long should you keep them for?
Posted Feb 23, 2010
HMRC has released a new guide explaining which tax and accounting records contractors and other businesses should keep, and how long they should keep them for.
The PDF guide - 'Keeping tax records for your business' - explains that, as a general rule, you should keep all your tax records for at least 6 years.
In addition, if you are an employer, you need to keep all PAYE records for 3 years (in addition to the current year). A CIS contractor must keep his CIS records for the same period of time.
For personal (self assessment) tax returns, you must keep all records for 22 months from the end of the tax year to which they relate.
Limited Company Contractors
If you run your own limited company, you are required to keep the following records:
1. Accounting records, so show the financial position of your company at any given time, and to comply with the Companies Act - this includes details of all assets, liabilities, income and expenditure.
2. Business records, needed to file accurate Company Tax Returns - this includes bank statements, paying-in books, purchases, expenses and sales details.
3. VAT records, needed to accurately file your quarterly VAT Returns - this includes VAT sales and purchase invoices, and any other details relating to your VAT account.
You can look up further details on record keeping, and specific requirements for employers here (PDF).
- Professional Indemnity Insurance - Essential cover from Hiscox
- Helix Management Ltd - Up to 90% retention. Same day payments
- Parasol - the UK's favourite umbrella company
- Qdos - IR35 experts - Providers of low cost contractor insurance
- Contractor Finance - up to £30,000, when you need it
- Umbrella Company - 12,000 contractors can't be wrong!
- SJD Accountancy - UK's largest Accountants to Contractors
- Together we're stronger! - Join PCG, representing contractors
- ClearSky Accounting - specialist support for contractors
- Free IR35 & Tax Review - Call ICS on 0800 195 3750
- InTouch Contractor Accounting - Clients love our personal service
- Contractor Mortgages - Based on your daily rate alone