Accounts : Tip of the Week - Prime Records

Prime Records

With HMRC targeting more businesses for enquiry and investigations it has become even more important to ensure that your business is retaining the proper prime accounting records.

With computerised accounting systems becoming ever more popular, businesses often feel that this is enough information to retain should HMRC enquire into the business. However unless the prime records have been retained, it can cause serious problems.

The prime records such as till slips, cashsheets, wastage records, bank statements, cheque stubs and stock reports etc are the first things that HMRC will want to agree to your accounts and if you don 't have them then they may use a Business Economics Exercise. This is when they use margins and costs etc to calculate a sales figure which may be higher than declared and is very difficult to fully contest.

We would recommend that you keep each year's information together somewhere clearly marked with the period covered which would be easy to access should it be required. These records must be kept for 6 years from the year end e.g 31/3/2010 must be retained until 31/3/2016.

If you have any queries with regards to the above or would like any guidance then please do not hesitate to contact Colin Lumsden on 0141 643 9200 or by email on clumsden@adplusaccountants.co.uk

Article Keywords: Accounts Tip