If you are either self-employed or a company director, it is your obligation to fill in a Self Assessment tax document. Obviously, there are certain records that you will need to keep close at-hand throughout the year to allow this process to be completed smoothly and effectively. Also, HMRC may have enquiries in regards to your previous filings. Never forget that if records are incomplete, missing or incorrect, you may be required to pay a penalty. So, let us take a look at financial documents and records that you should always keep.
Income From Employment Records
These are some of the most common records that you will need and will include information in regards to pay and income tax. These forms will include:
- A P45 (a display of the taxes paid and the date you may have left a job)
- A P60 (your details for the tax year from 5 April
- A P11D (a display of expenses and benefits that you may have incurred)
- Taxed Award Scheme certificates
- Redundancy and termination payment data
Other data can include records of any tips or gratuities, additional benefits (meal vouchers or gift cards in relation to your employment) and any lump-sum payments not mentioned on your P45 or P60.
Records of Expense
There are times when out-of-pocket means may be necessary in order to complete a certain job. In this case, you may have the ability to claim these expenses to help lessen the amount of tax that you would normally be required to pay. Once again, these are important records to keep.
Benefits and Pension Records
Benefits documents will include social security information, any sick leave pay, Jobseeker’s allowance and either maternity, paternity or adoption pay. Pension records include:
- Form P160 (this would have been received upon retirement and began receiving pension payments)
- The P60 form that details the tax deducted from your pension
- Other pension-related information and the taxes that would have been similarly deducted.
Dividends, Interest and Income from Savings, Investments and Trusts
This is another important facet and these records will include numerous items such as:
- Bank statements
- Documentation regarding payment and interest earned from savings or investments
- All types of vouchers including unit trusts and dividends
- Any income received from a trust
- Tax education certificates
- Life insurance chargeable events documents
Additionally, any additional sources of income such as that which would be received through an inheritance and all other paperwork relating to investments and savings are important to keep organised.
Other Sources of Income
Of course, there will be instances when other income will need to be reported to the HMRC. Some of the most common examples of these will be:
- Property-derived income
- Overseas income, receipts for expenses that can be claimed, dividend certificates from companies abroad and any records of tax paid outside of the United Kingdom
- Employee share scheme income. These can include:
- Share options certificates
- Any letter regarding a change to an option
- A record of payments made for shares or options
- Shareholder benefits
Finally, Capital Gains tax records in relation to an owned asset are wise to keep. This is in the event that you may make a gain or loss of profit should you sell an asset.
Obviously, not all of these aforementioned stipulations will necessarily be needed for accurate tax reporting to the HMRC. These responsibilities will depend on individual circumstances and should any confusion arise, it is wise to speak with an accountant or contact the HMRC directly.