This link takes you to the HMRC manual in which the retention requirements
are explained in more detail.
http://www.hmrc.gov.uk/manuals/chmanual/CH14000.htm
The new legislation is primarily about standardising the cut-off date for
claims and assessments not specifically about the records, although clearly
the changes have possible implications for records. HMRC stress that
although they have the power to set new retention periods they have not yet
done so. They also stress that the records may need to be retained for
other statutory or business purposes. Most respondents to their consultation
did not regard a reduction in the retention period as being of major benefit
because they thought they would still need to keep the records to meet other
requirements
The C+6 retention period is derived mainly from a (mis)reading of the
Limitation Act 1981 and from HMRC VAT Notice 700/21 which sets out
recordkeeping requirements for registered entities. There have always been
more specific requirements in certain circumstances.
HMRC also explains: 'Section 388 Companies Act 2006 contains its own period
for which a company's accounting records must be retained. A public limited
company (plc) must retain its accounting records for 6 years from the date
they are made, whilst a private company (not a plc) must retain its
accounting records for 3 years from the date they are made. For a private
limited company, tax law requires records to be kept for a longer period so
the only records they can destroy at the 3 year point are ones that it
[sic]does not need for the purposes of completing a company tax return.'
We'll just have to wait and see whether they do make a change eventually.
Peter Emmerson
Director
Emmerson Consulting Limited
Poplar House
5 School Street
Witton-Le-Wear
County Durham DL14 0AS
Office 01388 488865
Mobile 07516 744795
Emmerson Consulting Limited is registered in England No. 3607347.
Registered Office: 140 Coniscliffe Road, Darlington, County Durham, DL3 7RT
|