Essay on Taxation and Records

Submitted By adamangler
Words: 5709
Pages: 23
Open Document
A general guide to keeping records for your tax return

RK BK1

Contents
Introduction

3

Why good record keeping helps you

3

Records you should keep

4

How long to keep your records

4

If you keep your records on computer

5

What you should do if your records are lost or destroyed

5

11

3

What happens if you don’t keep adequate records

If you run a business or work for yourself

Examples of the types of records you will need to keep
5
If you claim personal allowances, other deductions or reliefs
If you are an employee, a director, or an office holder
If you receive any form of social security benefits or a UK pension

5
6

Common points of difficulty

14

Motor vehicles and other assets used for business and private purposes

14

Claiming losses for capital gains purposes – time limits

14

Examples of records recommended for different types of business
15
Retail shop

15

Subcontractors in the construction industry 16

Manufacturing firm (limited company) 17

9

More information

18

If you receive interest, dividends or other income from UK savings, annuity investments or trusts

9

Your rights and obligations

19

If you are in a share scheme or receive share-related benefits

9

Putting things right

19

If you have other income in the UK or foreign income or gains

10

If you have capital gains or claim capital losses

10

We have a range of services for people with disabilities, including guidance in Braille, audio and large print. Most of our products are also available in large print. Please contact us on any of our phone helplines if you need these services.
2

Introduction
This guide gives you general advice about what records you need to keep for tax purposes and how long to keep them. It gives some examples of typical records you may need if you’re:
• completing a Self Assessment tax return
• making a claim, for example, for tax allowances or tax credits
• keeping business records
• employing others
• completing a Company Tax Return.

Why good record keeping helps you

Whatever records you keep, it makes sense to organise and keep them in an orderly fashion. This will help you and your accountant
(if you have one) as well as us, if we need to ask you anything.
If you’re starting a business, help keep it on the right track by keeping good records from the beginning and you’ll find it easier to keep your affairs up to date.

Records you should keep You should keep any records and documents that you have received, or have prepared, that will be used to complete entries in your Self Assessment or Company Tax Return, or your claim form if you’re claiming benefits or allowances. Most of these records will be from the tax year or accounting period to which they relate, or soon afterwards.
However, you will sometimes need to refer to records that are already several years old. For example, if you dispose of an asset
(such as land, shares or a valuable chattel, for instance a painting) that you have owned for a long time, you may need to have older records to calculate a capital gain or loss – read If you have capital gains or claim capital losses on page 10 of this guide, or go to www.hmrc.gov.uk/cgt/intro/record-keeping.htm The need to refer to old records can arise in other circumstances, so please bear this in mind as you read this booklet.
You may have already discarded any records relating to events that happened before April 1996, as there was previously no obligation to keep them. It does not matter if you have not kept such items, but you should hold on to any such records that you still have and which may be relevant in future.
For more information on record keeping for companies, go to www.hmrc.gov.uk/ct/managing/record-keeping.htm 3

What happens if you don’t keep adequate records

If we need to check your tax return for any
Show More

Related Documents: Essay on Taxation and Records

Payroll Report, Policies and procedures Essay

must be reviewed updated and documented at least annually. Any payroll errors, discrepancies and grievances should have clear processes and be addressed by managers or supervisors, not with another payroll staff. The physical security of payroll records, files, data and systems and payroll facilities access should be strictly controlled. Offices, mainframes and computers must be in securely locked area. Payroll staff must be working away from visitors and employer traffic where they’re not subject…

Words 1224 - Pages 5

Cis370 Unit 1 Assignment

software that can cut tax bills. The consumer can compare financial statement as well as projecting a five-year tax plan. This process can help the consumer decide whether to buy or sell securities, or move other investments to protect them from higher taxation. This application also helps the individual to protect themselves from liabilities that could possibly cause an underpayment…

Words 656 - Pages 3

Tax Law Essay

Consequence of possible remedies 2 3 Is Inspector General of Taxation or the Tax Ombudsman helpful? 4 4 Does Administrative Decisions (Judicial Review) Act 1997 or s 75 of the Commonwealth of Australia Constitution Act or s 39B of the Judiciary Act 1903 provide routes? 4 5 Conclusion 6 6 References 7 Introduction The essay is about the case of an individual taxpayer. ATO has decided audit her even if she has a record of adequate tax returns as well as a reputable tax agent to ensure…

Words 2034 - Pages 9

Opportunity Cost

exercise, incentives seem to be the determining factor for the projected record sales of an estimated $17.4 million in the auto sale for 2015. The incentives that would entice me to purchase an SUV or pick-up truck would include the December end of year close out specials, cash back incentives, cheap credit with low-interest rates, and lower fuel cost. I believe that all of these factors are the reason for the projected record sales in 2015. 10a.) Consumer surplus is the difference between what the…

Words 1242 - Pages 5

Characteristics Of Sole Proprietorship

Part A Business Organization Report Sole Proprietorship A Sole Proprietorship is one of the least complex business structures to create; comprised of a business owned solely by one person. Sole proprietorship’s offer direct liability to an owner as startup costs, losses, and lawsuits fall unequivocally on the business owner. The key characteristics of a sole proprietorship are: •Liability – The business owner is personally liable for all business actions/lawsuit. All personal assets including…

Words 1642 - Pages 7

For The Security And Confidential Information Of Payroll Information

employees signing off timesheets so that they are stating that it is correct, delegating duties for example having the manager check the timesheet and authorise it, the payroll member to process the information and the manger of payroll to cross check records, passwords and restricted access so that only the authorised personnel can access the system and so that only certain transactions can be completed without management approval, pre-employment checks will be completed on all staff. The information…

Words 547 - Pages 3

ACC565 Week 7 Discussion 1 and 2 Essay

corporation. In the case of an S corporation, the losses and deductions associated with it are passed to its shareholders at the end of every term or year. When the end comes, the corporation lists these as the taxable items and keeps a record of them each year for taxation purposes. Following the rule of loss and deduction, it becomes clear that loses are recognized at the end of each day. Loses are then allocated to individual shareholders on daily basis in accordance with their weightage of ownership…

Words 1247 - Pages 5

Tax Ruling Essay

Pubic ruling: A ruling for everyone, it’s the law. Public rulings provide advice on interpretation of the laws that the Commissioner administers. Public rulings deal with priority issues that require clarification, and are issued as either rulings or determinations. A public ruling is not the law. Private ruling: is for one person or a class of individual applies for that ruling. A private ruling set out the Commissioner's opinion about the way a tax law applies, or would apply, to you in relation…

Words 1751 - Pages 8

Chapter 20 in Bagley & Savage Subject: Corporate Governance, Ownership, and Control: Forms of Business Organizations (E.G. Sole Proprietorship/Limited Partnership/Llc/Etc....) Ernie Jameson Is a Design Engineer with a Essay

Company chapter 20 in Bagley & Savage subject: Corporate Governance, Ownership, and Control: Forms of business organizations (e.g. sole proprietorship/limited partnership/llc/etc....) Ernie Jameson is a design engineer with a proven track record in the field of electronic instruments. He recently designed new VLSI very large scale integrated chip. This chip is meant to be the heart and soul of a digital sampling keyboard to b called Echo. Jameson believes the Echo will set a new industry…

Words 1290 - Pages 6

Essay about Deloping: Financial Systems

Indentify the key corporate policies and procedures that framework auditing and reporting on financial systems and records. Reporting periods Taxation payment timings Delegated authorities Internal control procedures Taxable transactions Question Two Indentify the key Australian Accounting Industry professional standards for auditing and reporting on financial systems and records. Australian Accounting Standards Board (AASB) Australian Accounting Standards Australian Auditing Standards…

Words 468 - Pages 2