What Happens If You Lose Your Business Records??

Ray Stewart Bookkeeping, Business, Tax Matters Leave a Comment

Lost records have been a problem since time began. Sometimes the loss is genuine and records ruined in fire or floods etc., but sometimes the “loss” is a smokescreen because the business person thinks they can outsmart HMRC by claiming the records are lost.

HMRC has lots of information sources they can access in these situations, including digging into your bank accounts when the statements are lost (have you any idea how much the banks now charge for each statement HMRC ask for? between £5 and £25 each depending how far back they are needed), looking at your lifestyle to get a handle on how much money you spend, interest information, dividend information etc.

Without records, investigations become much easier for HMRC because you cannot provide any rebuttals to assumptions they make about your financial affairs and those investigations always end up with a much higher settlement than if all the records are available.

So… try hard not to lose them – they are worth their weight in gold – literally. Micro-fiche them, scan them, copy them, protect them as best you can so that if the originals do go AWOL for any reason – then it is no big deal at all

~Ray

Ray Stewart
I am a qualified Certified Practising Accountant having passed my final exams way back in 1981. I actually can’t believe that was 37 years ago!! Anyway, I am now in my 60’s and I have been running my own business since May 1983. And before you ask, no, I have never regretted a moment of it! Part of the membership requirements of my professional body now dictate that I spend quite a lot of time on “CPD” - continuing professional education (one of their better ideas) - and over the last two years I decided to study business growth and marketing. I have learnt such a lot and that knowledge has radically changed my old “accountants” approach to business. It has made such a difference to the way I work and operate I feel that I just have to pass on this knowledge. It is simply too powerful to hold back!! - but I will try and do it in simple terms rather than expecting you to spend hours, as I had to, working through the difficult language that trainers seem to use to pass on their concepts. I hope you find the blog a useful resource and interesting place to visit as the months pass. I will do my best to keep up the flow - but if there are any topics you would like me to cover, then please let me know. Ray Stewart
Ray Stewart
Ray Stewart

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