retaining completed tax returns

[puzzlemaniac]

I thought that individuals have to keep tax records for up to six years beyond the year the return and records relate to, but I've heard elsewhere that only 2 years needs to be kept.

Can anyone clarify what the actual timescale is?

Many thanks

[kempie]

Everyone must by law keep records of their income and their capital gains for at least 22 months after the end of the tax year to which they relate, so that they can fill in a tax return fully and accurately if they get one.

People who have businesses - such as the self-employed and partners and those letting property - must keep their records for at least five years and ten months after the end of the tax year to which they relate.

http://www.hmrc.gov.uk/sa/faqs/records.htm

[revpat55]

You are correct - current year plus 6 previous years. This means that as you will have just completed your 2006/07 tax return you need to keep 2000/01 onwards for Inland Revenue purposes

[fredpuli47]

The reason is that an unacknowledged debt over six years old is statute barred and the debtor can't then claim it. So there'd be no point in keeping records beyond six clear years .Strictly speaking, at common law, the Revenue are not bound by that rule because 'time does not run against the Crown'. However they have long regarded themselves as bound by it . (There is no time limit against them if they have good grounds for believing that they have been defrauded, in which case they can go back as far as they like in their investigation.)

[puzzlemaniac]

Thanks for the clarification. Best not shred anything more!