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Dear Tutor, there is a question which is confused me.
Ming is self-employed. how long must she retain the business and non-business records used in preparing herself- assessment tax return for the tax year 2015/16?
the answer is business records 31 January 2022, non-business records 31 January 2022.
but in the note said that records must be retained until 5 years after the filing date, which is 31 January 2021(confused) for the year 2015/16 if the tax payer is a business or has properties to let. however records must retained for only one year after the filing date, which is 31 January 2018 (confused) for the year 2015.16 if not in business.
would you please help me.
many thanksFirstly let me apologise for an updating typing error – the rules that you have quoted above are CORRECT but clearly 5 years after the filing date should be 31 January 2022 and NOT 2021 (which has not been changed from last year’s notes!). It then correctly states one year after the filing date is indeed 31 January 2018 – the filing date for 2015/16 of course being 31 January 2017,
The next issue is simply reading the rule carefully – the last part of the final sentence relating to the one year rule instead of the five year rule that you quote above is “if NOT in business”. Ming is self employed and is therefore in business and hence is required to maintain ALL records for five years!
The one year rule is only applicable to those taxpayers who are not in business.
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