Your Guide to How Long You Should Keep Your Documents

Transcription

1 Your Guide to How Long You Should Keep Your Documents

2 Table of Contents Why is a Document Retention Schedule Relevant to Your Business? 1 How Can FDA Help You Take Back Your Office Space? 3 The Retention Schedule Corporate Records General 4-5 Corporate Records Share Documents 6 Contracts & Agreements 7 Investments 8 Accounting General 9 Accounting Sales Records & Customer Correspondence 10 Financial Asset Records 11 Financial Loan Records 12 Financial Payroll & Wages 13 Pensions 14 Accounting Cash 15

3 The Retention Schedule HR Records Insurance Records 18 Technical Research 19 Property Records 20 Plans 21 Transport Records 22 Health & Safety Records 23

4 Why is a Document Retention Schedule Relevant to Your Business? This is a common question, regularly posed by FDA customers. With the constant bombardment of commercial, financial and operational issues that a business has to contend with, surely the length of time you need to keep your paperwork is one of those areas which does not require too much thought. Just file your documents in an archive box, put that box into storage, and forget about it right? Whilst this is true for some internal and commercial records (although a bit of best practice here can reduce ongoing storage costs), there is some quite substantial legislation governing document retention which can result in significant fines for businesses who fall foul of the rules. And it s not just about the destruction of records, but also how and where you keep them, and who has access to them. The first piece of legislation affecting virtually all businesses is the Data Protection Act This Act provides eight principles of good information handling, and applies to all records (electronic and hard copy) which name living individuals and contain personal information (e.g., address, date of birth, bank details etc) think HR files, customer data (particularly if you sell directly to consumers), payroll records, health & safety documents and medical/next of kin information. The Data Protection Act requires that appropriate measures are taken against unauthorised access to, or alteration, disclosure or destruction of personal data and this includes both destroying documents too soon (i.e., not adhering to the guidelines provided by a Retention Schedule like this) but also conversely retaining files for too long. Individuals have a right to expect you to destroy records containing their personal data as soon as you are no longer legally obliged to retain them and the Data Protection Act enshrines this right in legislative obligation. Price of nonconformance? A fine of up to 500,000, plus potential criminal prosecution if you show serious disregard for the rules. Another piece of legislation of which to be aware is the Freedom of Information Act. This primarily affects public bodies (the private sector can skip this paragraph), and gives individuals a right of access to information ranging from governmental records to documents created by schools and parish councils. These records are also under the remit of the Data Protection Act 1998, so public bodies need to be able to demonstrate that they store, process and manage personal data with the same duty of care as their private sector counterparts. If an FoI request is granted for a document that should have been destroyed according to the Organisation s own retention policy, questions will be asked, as it would demonstrate a breach of DPA requirements. There is also the Financial Services Act 2012, which is part of a heavy-duty regulatory machine governing the financial services industry, and Sarbanes-Oxley (remember Enron?) which applies to UK subsidiaries of 1

5 Why is a Document Retention Schedule Relevant to Your Business? certain US companies and requires businesses to retain critical records. So, from a legislative viewpoint, it is clear that you need to show some consideration to how long you retain any files containing personal data, but also any records to which industryspecific guidelines apply and if your business is employed in the financial services, insurance, medical or educational sectors, you need to be particularly aware of your obligations. But what about those businesses (perhaps like yours) which operate in other, less legislative sectors? Other than the Data Protection Act s guidance, what else do you need to consider? Two key concerns are immediately obvious business risk and cost. From a risk perspective, adhering to document retention guidelines can be seen as a prudent insurance policy of sorts. Let s say that an ex-employee takes legal action against your business because of a payroll dispute. If you have destroyed their records in haste, your ability to demonstrate your case is severely limited (particularly if the ex-employee can produce records supporting their claim). Similarly, if you have retained their records for longer than you needed to and their existence is known, you may be obliged to produce them in a Court of Law, and this could also damage your case. The easiest way to navigate this? Put all records with the same destruction date in the same archive box, retain that box for the period stated in this Guide, and then securely destroy it as soon as it reaches the expiry date. Finally, and perhaps most pertinently, there is the issue of cost. Retaining documents costs s - even if they are stored on your own premises. Many of FDA s storage customers kept their archive boxes onsite until the time came when they realised that the space they were occupying could be used to seat another group of employees, or to store greater volumes of stock. There is a great fallacy that keeping documents onsite costs nothing in fact, there is often a large opportunity cost, which is then compounded when the files being retained have long-since reached their expiry date. Destroying in a timely manner ensures the best use of your funds, and where your records are stored onsite, the best use of your space. So, Cost, Risk and Legal Obligation are the watchwords by which to manage your records. This Guide offers a starting point to get your files in order, and implement a retention schedule which will keep you legal and minimise your costs. If you are in a particularly legislationdriven industry, though, or have queries which are not answered in this document, please do contact us directly to talk about your specific needs the schedule which follows is intended as a generic guideline only. 2

6 How Can FDA Help You Take Back Your Office Space? Strong, durable archive boxes for your records. No broken handles or collapsed bottoms! Secure, dry, dedicated storage facilities an offsite extension of your own office. Each box barcoded for traceability and wrapped in a plastic anti-tamper bag. Collection and Delivery of boxes and individual files as standard in our managed door to door service. As, when and where you need us. Secure, online file management software provided to search, track and order documents online. No more spreadsheets or handwritten lists. Secure, Dedicated Offsite Document Storage & Management Confidential shredding of stored archives and sensitive office paperwork. Secure, managed cradle-tograve file management. 3

7 1. CORPORATE RECORDS - GENERAL Accounts Required under Section 221 of the Companies Act 6 years from the end of the Legal (e.g. Income Statement/Profit & Loss, Balance Sheet) financial year they relate to Management Accounts 6 Years Commercial Minutes of Committee/General Meetings Permanently Legal Minutes of Directors Meetings, signed by the Chairman Permanently Legal Company Registers Permanently Legal Articles of Association Permanently Legal Certificate of Incorporation Permanently Legal Trade Union Agreements Permanently Commercial Register of Directors/Secretaries Permanently Legal Proxy Form/Polling Cards from Annual Meeting 2 months after meeting Commercial if no poll demanded; 1 year after meeting if poll demanded Trade Mark/Service Mark Documents 10 years after cessation Legal of registration Written Resolutions Permanently Legal Court Orders/Enquiry Proceedings Permanently Legal Significant Policy Papers Permanently Commercial Significant Company Organisation Papers Permanently Commercial 4

8 1. CORPORATE RECORDS - GENERAL - CONTINUED Seal Book Permanently Legal Change of Name Permanently Legal 5

9 2. CORPORATE RECORDS SHARE DOCUMENTS Application Forms Permanently Legal Acceptance Forms Permanently Legal Renounced Share Certificates Permanently Legal Allotment Letters, Sheets & Returns (Renounced) Permanently Legal Allotment Letters (Lodged for Exchange) 1 year from date ceased to be valid Legal Share & Stock Transfer Forms Permanently Legal Letters of Indemnity for Lost Records Permanently Legal Annual Return Permanently Legal Dividend and Interest Payment Lists & Warrants 12 years Legal Unclaimed Dividend and Interest Lists Until cleared/forfeited Commercial Cancelled Share Certificates 1 year Legal Change of Address 2 years Legal Register of Directors Interest Permanently Legal Register of Interests in Voting Shares Permanently Legal Register of Members Permanently Legal 6

10 3. CONTRACTS & AGREEMENTS Under Seal 12 years after expiry Legal Others 6 years after expiry Legal Major Agreements Permanently Commercial Royalty Payments Permanently Commercial Royalty Agreements 1 year after expiry Legal 7

11 4. INVESTMENTS Share Certificates Register Permanently Legal Company Purchase/Sales Register Permanently Legal Pension Fund Details Permanently Legal 8

12 5. ACCOUNTING - GENERAL Cheques/Remittance Advice 6 years after audit Legal Cash Book List 10 years after audit Legal Cost Control Ledger Analysis 6 years after audit Legal Invoices (Revenue) 6 years after audit Legal Invoices (Capital) 10 years after audit Commercial Purchase Requisition Forms 2 years Audit Purchase Orders (Revenue) Current, plus 3 years Audit Purchase Orders (Capital) 3 years after expiry Audit Quotations (Successful) Until invoice is settled and audited Audit Quotations (Unsuccessful) 1 year Legal Export Rebate Claims 3 years from final payment Commercial Customs & Excise Returns 6 years Legal Shipping Documents 6 years Legal Donations all types Current, plus 6 years Legal Bank Instruction 6 years after ceasing to be effective Legal Goods In/Out Records Current, plus 6 years Legal Stock Adjustment Sheets 2 years Audit VAT Deferments 6 years Legal Expense Claims 6 years after audit Legal 9

13 6. ACCOUNTING SALES RECORDS AND CUSTOMER CORRESPONDENCE Customer Complaints 6 years Commercial Consignment Notes 6 years Legal Correspondence Files 3 6 years, depending Commercial on company policy Customer Files 6 years after last entry Legal Customer Orders, Estimates or Quotations 6 years Commercial Delivery Documentation Current, plus 6 years Legal New Business Enquiries 1 year Commercial Nominal Journals/Ledgers 10 years Legal Overdue Account Letters Until paid Commercial Sales Invoices/Credit Notes 6 years Legal Sales Journals/Ledgers 10 years Legal Statements 2 years Audit Bank Paying In Counterfoils 6 years Legal Bank Reconciliation 6 years Legal Bank Statements 6 years Legal Cash Received/Cheque Payment Sheets 10 years Legal Main Cash Book 6 years after audit Legal Petty Cash Records Current, plus 6 years Legal Unpresented Cheque List 6 years Legal 10

14 7. FINANCIAL - ASSETS Ledger Sheet 10 years Legal Consolidated Accounts Permanently Commercial Disposal of Assets Permanently Commercial Asset Registers Current, plus 6 years Commercial Application to Write Off Plant Value Permanently Commercial Annual Depreciation 3 years Audit 11

15 8. FINANCIAL LOAN RECORDS Debtor Accounts Control Report 6 years Legal Arrears Schedule 6 years Legal Individual Debtor Accounts 6 years after payment of debt Legal Listing of Wage Deductions 3 years Audit Statement of Loan Account Permanently Commercial 12

16 9. FINANCIAL PAYROLL & WAGES Tax Forms P6, P45, P48, P11, P11D, P35, P60 At least 3 years after the end of Legal the tax year to which they apply Payroll & Salary Records 6 years after audit Legal National Insurance Contributions 6 years Legal Schedule of Deductions 6 years Legal Annual Earnings Summary 6 years Legal Monthly Superannuation 6 years Legal Annual Superannuation 6 years Legal Cumulative Superannuation 6 years Legal 13

17 10. PENSIONS Trust Deed & Rules Until fund cease or merges, Legal plus 12 years Minute Books Until fund cease or merges, Legal plus 12 years Pension Payments 6 years after last payment Legal of benefits Members Records Review every 10 years Audit Valuation Working Papers Review every 10 years Audit Actuarial Certificates Review every 10 years Audit Superannuation Adjustments Current plus 6 years Legal Superannuation Reports Current plus 6 years Legal 14

18 11. ACCOUNTING - CASH Bank Paying in Counterfoils 6 years Legal Bank Reconciliation 6 years Legal Bank Statements 6 years Legal Cash Received/Cheque Payment Sheets 10 years Legal Main Cash Book 6 years after audit Legal Petty Cash Records Current plus 6 years Legal Unpresented Cheque List 6 years Legal 15

19 12. HR RECORDS Staff Personnel Records 7 years after employment ends Legal Staff Overtime 6 years Legal Redundancy/Long Service 7 years Legal Absentee Records Permanently Commercial Unsuccessful Job Applications 1 year Commercial Training Course Details and Attendees 6 years after course Commercial Disciplinary Records Unfounded destroy immediately; Commercial Minor 1 year from date of action; Major/final warning 3 years from date of action Leave Records (all types) Current plus 1 year Commercial Appraisal Records Current plus 1 year Commercial Medical Records/Medical Treatment Records 30 years after expiry (with consent) Commercial Group Health/Medical Schemes Permanently (the legal requirement Commercial is to keep them for 12 years after the benefit ends) Early Retirement Records 6 years after date of retirement Legal Redundancy Records/Payments 6 years after employment ceased Legal Staff Patent Agreements 16 years after employment ends Commercial Expense Claims 6 years after audit Legal 16

20 12. HR RECORDS - CONTINUED Timesheets 2 years Audit Consolidated Sickness Records Current plus 3 years unless related Commercial/Legal to Health & Safety legislation Labour Agreements Permanently Commercial 17

21 13. INSURANCE RECORDS Policies 3 years after lapse Commercial Public, Product & Employers Liability Records Until superseded Legal Insurance Schedules 10 years Commercial Claims Correspondence 3 years after settlement Commercial Claims Regarding Radiation 40 years Legal Infant Settlements Until 24 th birthday Legal Other Settlements 7 years after claim Legal Accident Record Books 3 years from date of last entry Legal 18

22 14. TECHNICAL RESEARCH All Reports of Data 15 years Legal Product Specifications Retain for contractual Legal limitation period, 6-12 years 19

23 15. PROPERTY Title Deeds 12 years after expiry Legal All Other Property Related Documents 12 years after expiry, or after Legal interest ceased Planning Permission 12 years after property Legal interest ceased Leases 12 years after lease end Legal Architect/Builder Agreements 6 years after contract ends Legal 20

24 16. PLANS Architectural Permanently Commercial Engineering Detail Permanently Commercial Mining Permanently Commercial Structural Permanently Commercial General Layout Permanently Commercial 21

25 17. TRANSPORT RECORDS Drivers Log Books 1 year Commercial Tachographs 3 years Legal MOT Test Records 2 years after vehicle disposal Commercial Mileage Records 2 years after vehicle disposal Commercial Vehicle Maintenance and Service Records 2 years after vehicle disposal Commercial 22

26 18. HEALTH & SAFETY RECORDS Accident Books 3 years from date of last entry Legal Asbestos (Medical Records) 5 years from date of monitoring Legal or 40 years if health record required Statements, Policies and Guidance Review annually. Commercial Advise that archived policies are retained for at least 6 years Equipment Inspection Records Varies according to equipment refer to relevant documentation Copy of Declaration of EC Conformity 10 years from date when safety Legal including Final Inspection Certificate component was last manufactured COSHH Incident Reports 40 years from date of incident Legal RIDDOR Reports 3 years from date of notification Legal Risk Assessments Until superseded Legal 23

27 Your Secure Offsite Filing Cabinet FDA UK East Marden Chichester PO18 9JB Company registered in England and Wales All estimates are valid for 30 days, and are subject to FDA s Terms of Business