Taxes Management Act 1970 section 12B

Records to be kept for purpose of returns

Section 12B sets out the obligation on taxpayers to keep and preserve adequate records to support their tax returns, including what records must be kept, how long they must be retained, and the penalties for failing to comply.

• Anyone who may be required to file a self-assessment, trustee, or partnership return must keep all records needed to produce a correct and complete return
• Those in trade, profession, business, or property letting must retain records for five years after the 31 January following the tax year; all others must retain them for one year after that date
• Records may generally be preserved in any form (including digital), but certain original documents — such as tax deduction certificates, CIS payment records, and foreign tax evidence — must be kept in their original form
• Failure to keep or preserve required records can result in a penalty of up to £3,000, though this does not apply where the missing records relate only to claims not included in the return, or where HMRC is satisfied the relevant facts can be proved by other documentary evidence