Your tax return: the basics
In this section:
- Introduction to Self Assessment
- Do you need to complete a tax return?
- Completing your tax return (individuals and directors)
- Record keeping (individuals and directors)
- Tax return deadlines and penalties
- Understanding and using Self Assessment Online
- Understanding your tax calculation
- Understanding your Self Assessment Statement
- How to pay your tax
- What to do if you can't pay your tax bill
Record keeping (individuals and directors)
If you're a UK taxpayer you should keep a record of the tax you pay each year and other records relating to your income. You'll need these if we ask you to complete a tax return or if you need to provide information on one you've already completed.
On this page:
- Income from employment
- Expense records
- Benefits records
- Pension records
- Interest, dividends or other income from UK savings, investments or trusts
- Income from property
- Foreign income or gains
- Income from employee share schemes or share-related benefits
- Capital gains or capital losses
- Business income or income from self-employment
- How long must you keep your records?
- If your records are lost or destroyed
Income from employment
You should keep documents containing details about your pay and tax that your employer provides, including:
- your P45 - keep part 1A of this form
- your P60 - pay and tax details for the tax year
- details of your expenses and benefits, such as a company car or health insurance - your employer will give you these using form P11D
- your payslips or pay statements
- certificates for any Taxed Award Schemes
- information about any redundancy or termination payment
You should also keep:
- A record of any tips or gratuities and details of any other taxable receipts or benefits that aren't included in any other documents. If your employer pays your tips or gratuities through a tronc system they operate, they'll deduct any tax and National Insurance due.
- Information about benefits in kind - for example meal vouchers - that you receive from anyone other than your employer in connection with your employment.
Expense records
When you're employed you may be able to claim for expenses to reduce the tax you'll have to pay. You'll need to keep records so you can include the expenses in your Self Assessment tax return.
More about Tax relief for business expenses
Benefits records
You should keep any documents relating to:
- social security benefits
- Statutory Sick Pay
- Statutory Maternity Pay
- Jobseeker's Allowance
Pension records
You should keep:
- your form P160 (part 1A), which you received when you retired and started getting a pension from your former employer
- your form P60 giving details of your pension and the tax deducted
- any other details of a pension and the tax deducted from it
Interest, dividends or other income from UK savings, investments or trusts
You should keep all:
- bank and building society statements or passbooks
- statements of interest and any other income you've received from your savings and investments
- tax deduction certificates supplied by your bank
- dividend vouchers received from UK companies
- other vouchers such as scrip dividend vouchers
- unit trust tax vouchers
- life insurance chargeable event certificates
- details of any income you receive from a trust
You should also keep:
- details of exceptional amounts you've received, for example an inheritance or other windfall
- correspondence and other documentation relating to your savings and investments
Income from property
If you get income from letting out a property, you'll need to keep details of the rents you've received and the expenses you've paid.
Records a landlord needs to keep - learn more
Foreign income or gains
You'll need to keep any dividend vouchers, tax certificates and personal financial records.
Foreign income or gains - find out what records you need to keep
Income from employee share schemes or share-related benefits
You should keep information on any share options awarded or share participation arrangements.
Shares and income related to shares - get details of the records to keep
Capital gains or capital losses
You'll need to keep contracts and other documentation about assets you've bought, sold, exchanged, given away or acquired. You should also keep any bills, invoices or other evidence of payment such as bank statements and cheque stubs for the costs of buying, improving or selling assets - as well as copies of any valuations used in your calculations.
Capital gains or losses - get details of the records you'll need
Business income or income from self-employment
If you're self-employed or in business there are certain records you legally have to keep. There are also good business reasons for keeping good records.
Record keeping (self-employed) - find out more
Record keeping (partners and partnerships) - find out more
How long must you keep your records?
If you're not running a business you'll normally have to keep your records for at least 22 months from the end of the tax year to which they relate. For example a form P60 for the tax year 2006-07 mustn't be destroyed until after 31 January 2009.
It's advisable to keep documents relating to buying or improving assets until at least 22 months after the end of the tax year in which you disposed of the asset. These documents will help you calculate any capital gains or losses and answer any queries we have. For example if you dispose of an asset in February 2007 you must keep any records relating to its purchase, improvement and disposal until after 31 January 2009.
If your records are lost or destroyed
If your records are lost or destroyed and you can't replace them you must tell us what has happened and do your best to recreate them.
Once you've gathered replacement information you use this to complete your tax return. You must tell us whether any provisional figures are:
- estimated figures - you want us to accept these as final figures
- provisional figures - you are using these until you can confirm the figures (you must tell us when you will be supplying actual figures)
If you make adjustments at a later date and you've underpaid tax there may be interest and penalties to pay.
