It doesnt take a lot to keep on top of your paperwork. You just need to set aside some time and storage space.
Each day or week deal with your post and stick to the rules: Read it, action it then file it or bin it.
If you need to complete a tax return, keep a separate wallet for the information you will need, such as interest received, dividends received and your pay or earnings. If you file each item as you receive it, you will have everything in one place to hand over to your accountant when the time comes.
Another important area is the completion of the stubs in your chequebooks and paying in books (which should be retained with your bank statements). It may seem like a pain at the time but we often come across cases where HM Revenue & Customs want an individual to identify all receipts into bank and building society accounts for a period of year or more.
Suggested filing categories are:
Financial for tax returns including self assessment forms, P60 and P11d
Other financial such as credit cards, mail order accounts, loans, subscriptions
Household including utility bills, telephone bills, council tax, insurance, TV licence
Car insurance documents, servicing, repairs
School details of trips, meetings, fundraising
Receipts, guarantees and instructions for major purchases and household appliances
Important documents such as passports, birth certificates, marriage certificates, medical details
There is no legal requirement to keep personal records other than those used to complete your tax return which must be kept for at least 22 months after the end of the tax year they relate to, or a year after the submission of your tax return if longer, unless you are self employed or you let out property in which case, all records must be kept for six years.
Date:18 January 2008
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