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Taxation (UK) · The systems for self-assessment and the making of returns

Record Keeping Requirements for Self-Assessment in TX-UK

Updated 11 October 2026 · Fact-checked

Under self-assessment you must keep records that support every figure on your return. Individuals with business or property income keep them for five years after the 31 January filing deadline. Other individuals keep them for one year. Companies keep them for six years from the end of the accounting period. Failing to keep adequate records can bring a penalty.

Understand Record Keeping Requirements

Self-assessment means you work out your own tax and report it to HMRC. HMRC does not check the return first. It can check it later. To make that possible, the law requires you to keep the records behind the figures on your return.

The records must be good enough to support the return. For a business, that means books of account, sales and purchase invoices, bank statements, and details of assets bought and sold. For an individual with investments or property, it means dividend vouchers, interest certificates, rental records and similar papers. Records for capital gains, such as purchase and sale documents, also count.

The length of time depends on who you are. An individual in business or with property income must keep records for longer than an individual with only employment or investment income. Companies have their own rule, based on the accounting period rather than the 31 January date. The period is measured from a fixed point, so you can calculate the end date exactly.

The time limits tie in with HMRC's powers. For an individual's own return filed on time, HMRC can open an enquiry within 12 months after the actual filing date. The record keeping period is longer than that window, so you still hold the evidence when an enquiry could be opened. If an enquiry is open, do not dispose of the records until it is finished.

If you fail to keep adequate records, a penalty of up to £3,000 can be charged for each return period concerned (the tax year or accounting period). The £3,000 is a maximum, not a percentage of tax. This is separate from the penalties for errors on the return, which depend on behaviour: careless up to 30%, deliberate but not concealed up to 70%, and deliberate and concealed up to 100% of the extra tax.

Key rules to remember

Individual in business or with property income
Keep until 5 years after the 31 January filing deadline
The 31 January following the end of the tax year. Example: 2025/26 deadline is 31 January 2027, so keep until 31 January 2032.
Other individuals (no business or property income)
Keep until 1 year after the 31 January filing deadline
For example, an employee with only employment and savings income. 2025/26: keep until 31 January 2028.
Companies (corporation tax)
Keep for 6 years from the end of the accounting period
Year ended 31 March 2026: keep until 31 March 2032.
Penalty for inadequate records
A penalty of up to £3,000 can be charged for each return period
The £3,000 is a maximum, not a percentage of tax. The return period is the tax year or accounting period. Separate from penalties for errors (careless 30%, deliberate not concealed 70%, deliberate and concealed 100% maximum).
HMRC enquiry window (individual's own return)
12 months after the actual filing date, for a return filed on time
This window runs from the date you actually filed. The record keeping period runs from the 31 January deadline.

How to solve Record Keeping Requirements questions

Use this method for any question on record keeping, whether it asks for a date, a period or a penalty.

  1. 1Identify the taxpayer: individual with business or property income, other individual, or company.
  2. 2Identify the return period: the tax year or accounting period concerned.
  3. 3Choose the rule: five years or one year after 31 January for individuals, six years from the period end for companies.
  4. 4Find the starting point. For individuals, work out the 31 January filing deadline first (the 31 January after the tax year ends). For companies, use the last day of the accounting period.
  5. 5Add the period and state the final date clearly.
  6. 6If the question asks about failure, say a penalty of up to £3,000 can be charged for each return period, and that it is not a percentage of tax.
  7. 7Check for an open enquiry. For an individual's return filed on time, HMRC has 12 months from the actual filing date to open one. If one is open, keep the records until it ends.

Quickest way: Date-first shortcut

When to use it: Use this for objective test questions that ask for the last date records must be kept.

  1. Write the taxpayer type in two words: business individual, other individual, or company.
  2. For individuals, jump to 31 January after the tax year end. Tax year 2025/26 ends 5 April 2026, so the date is 31 January 2027.
  3. Add 5 years for business or property income (31 January 2032). Add 1 year otherwise (31 January 2028).
  4. For companies, take the period end and add 6 years.
  5. Check the options. Wrong answers usually count from 5 April or from the date the return was actually filed.

Common mistakes in Record Keeping Requirements

  • Counting the five years from 5 April, the end of the tax year.

    Students link the tax year end to everything.

    Fix: For individuals the clock starts at the 31 January filing deadline, not the year end.

  • Using five years for every individual.

    Students remember one rule and apply it to all.

    Fix: Five years is for business or property income. Individuals with only employment or investment income keep records for one year after 31 January.

  • Applying the individual rule to a company.

    Both are under self-assessment.

    Fix: A company keeps records for six years from the end of the accounting period. There is no 31 January date for companies.

  • Stating the penalty as a percentage of tax.

    Confusing it with penalties for errors.

    Fix: The record keeping penalty is up to £3,000 for each return period, not a percentage of tax. The 30%, 70% and 100% figures are for errors.

  • Ignoring an open enquiry.

    Students stop at the date calculation.

    Fix: If HMRC has opened an enquiry, keep the records until it is closed, even if the normal period has ended.

  • Counting the record keeping period from the actual filing date.

    Students assume the return date starts the clock.

    Fix: Use the filing deadline for individuals and the period end for companies, not the date you happened to file. The actual filing date matters only for the 12-month enquiry window.

Worked examples

Example 1

Priya is a sole trader. She files her 2025/26 tax return online. By what date must she keep her business records?

Show the solution
  1. Priya has business income, so the five-year rule applies.
  2. The 2025/26 tax year ends on 5 April 2026.
  3. The filing deadline for an online return is 31 January 2027.
  4. Add five years: 31 January 2032.

Answer: Priya must keep her records until 31 January 2032.

Example 2

Tarn Ltd prepares accounts for the year ended 31 March 2026. Mark Tarn, a director, also has only employment income and bank interest for 2025/26. State how long each must keep records.

Show the solution
  1. Tarn Ltd is a company, so records are kept for six years from the end of the accounting period.
  2. The accounting period ends on 31 March 2026. Add six years: 31 March 2032.
  3. Mark has only employment and savings income, so the one-year rule applies.
  4. His 2025/26 filing deadline is 31 January 2027. Add one year: 31 January 2028.

Answer: Tarn Ltd keeps its records until 31 March 2032. Mark keeps his records until 31 January 2028.

Exam tips

  • Practise working out the 31 January date first. Most date errors come from the wrong starting point.
  • Know the three periods: five years and one year for individuals, six years for companies. Objective tests offer options that mix them up.
  • Learn the £3,000 maximum record keeping penalty per return period. Do not confuse it with the 30%, 70% and 100% error penalties.
  • In a written answer, give the taxpayer type, the rule, the date and the penalty in that order. Each point is a separate mark.
  • Read whether the person has business or property income. This decides between five years and one year.

Practice questions from The systems for self-assessment and the making of returns

Record Keeping Requirements in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Record Keeping Requirements: frequently asked questions

How long must an individual keep tax records for TX-UK?

If the individual has business or property income, keep records until five years after the 31 January filing deadline. Otherwise keep them until one year after that deadline. For 2025/26 the deadline is 31 January 2027.

How long must a company keep records?

A company must keep records for six years from the end of the accounting period. For a year ended 31 March 2026, that is until 31 March 2032.

What is the penalty for failing to keep records?

Failing to keep adequate records can bring a penalty of up to £3,000 for each return period (tax year or accounting period). It is a maximum, not a percentage of tax. Do not confuse it with the error penalties of up to 30%, 70% and 100%.

Does the period change if HMRC opens an enquiry?

For an individual's own return filed on time, HMRC can open an enquiry within 12 months after the actual filing date. If an enquiry is open, keep the records until it is finished. HMRC may need them to check the return.