HMRC requires UK businesses to keep financial records for at least 6 years. Boxkite automatically backs up your Xero data to Dropbox, ensuring you have the records you need for tax enquiries, VAT inspections, and Making Tax Digital compliance.
| Retention Period | Records | Notes |
|---|---|---|
| 6 years | Income Tax self-assessment records | From 31 January following the tax year |
| 6 years | Corporation Tax records | From end of accounting period |
| 6 years | VAT records | From date of supply or receipt |
| 3 years | PAYE records | After end of tax year (6 years recommended) |
| 6 years | CIS records | Construction Industry Scheme documentation |
| Indefinite | Capital gains records | Until asset disposed and 6 years after |
HMRC opens an enquiry into your tax return from 4 years ago. They want to see the original invoices and bank reconciliations that supported your figures. Without complete records, you may face estimated assessments and penalties.
A VAT officer visits to inspect your records. They need to see purchase invoices that match your VAT returns going back several years. Incomplete records can result in disallowed input VAT claims.
HMRC queries your MTD submissions, asking for the digital records that generated the figures. Your accounting software has changed and old data was migrated imperfectly. Boxkite backups show exactly what was in Xero when you submitted.
Automatic daily backups accumulate over time, giving you years of financial record history in your Dropbox.
Combined with Dropbox version history, see exactly what your records looked like on any given date.
Your digital records are preserved independently, supporting any HMRC queries about MTD submissions.
Independent backup provides evidence of what records existed and when—essential for enquiries.
Start protecting your Xero records today. Automatic backups ensure you always have the documentation HMRC requires.
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