I know that HMRC expect payroll records to be kept for the current and the three preceding years. However, does that mean as a payroll agent I can destroy payroll records for 2007/08 and earlier? The records in question are for ex-clients.
Don't know about the rules relating to payroll records specifically, but aren't you supposed to keep business records for 6 years anyway? (I would include payroll records in that).
I suppose it also depends on who owns the records. I would have thought that, as a client has commisioned you to produce the records on their behalf, they would belong to the client.
I would be inclined to pass them back to the client.
Im along same line as Bill they are the clients records and not your own - providing you issued paperwork to client you just completed work on his behalf. Going along lines of data protection act "The Data Protection Act says that information should be kept for no longer than is necessary. The Act does not specify what a necessary period should be for particular.
-- Edited by Donna CBK on Wednesday 1st of February 2012 05:27:51 PM
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Donna Curling - Complete Book-Keeping Ltd (CBKLtd) - 07939 101900
As I am unlikely to see these clients again I have decided to play it safe and just destroy records over six years old. I acn then have another purge next April.
I'm with Bill in that the records go back to the client. And the responsibility for making the records available to HMRC (or to us to deal with HMRC) lies with the client not with us.
As for the clients data retention period, the companies act states that it's actually six plus one meaning six plus the current year (or 3+1 for Payroll). However, to work to that rule is dangerous for us as negligence claims can go back 15 years.
The bookkeeping side of my business is still young but I've set my systems up on the basis of keeping the working papers on clients for 16 years.
The retention of accounting records for six plus one should be emphasised in the engagement letter as denial of advice by the client will get the advisor in trouble with HMRC whereas it's more difficult for the client to deny something that they have signed.
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
