How to organise paperwork and declutter your life (2024)

One of the key ways to feeling happier is to simplify your life – and we all know receipts, bills, warranties and tax paperwork can easily pile up.

Before you know it, there’s a mountain of documents taking up space, gathering dust and generating guilt, because you don't know what to keep and what you can afford to throw away - especially if you've got years of files to think about.

But if you know what paperwork you might need to call on in the future and why, the task of sorting it becomes much less of a challenge. Now you can approach the future knowing that you’ve cleared away the past, and can plan for the next phase of life more simply.

Tax-related paperwork

Let’s start with tax returns - if you’ve ever had to fill out a self-assessment, thenHMRC suggests that individuals (not people that run their own businesses) who file their tax returns on time should keep hold of any tax-related paperwork for at least 22 months.

If, however, your paperwork got on top of you and you filed late, HMRC suggests keeping it for 15 months from the date your return was filed.

However, it’s worth noting that HMRC can fine you if your records are incomplete or faulty – so rather than risk that, you might want to hold onto any paperwork for a little longer. So 2-3 years is a good rule of thumb here.

Paperwork that you might need to complete a tax return is likely to include:

• Utility bills
• Payslips
• P45s
• Employment contracts
• Benefits records
• Pension payments
• Pension contributions
• Bank statements
• Records of any capital gains and losses
• Income from any rental properties
• Taxable income from savings and investments

If, however, you are self-employed, the requirements are different and HMRC says it’s important to keep six years of paperwork (or at least five years after the 31st of January for the relevant tax year).

And, in addition to all of the paperwork listed above you’ll also need to keep:

• Invoices and details of your sales and income
• Bank statements and chequebook stubs
• Receipts (that aren’t included on your bank statement)
• Details of your tax-deductible business expenses
• VAT records – if you’re registered

Bear in mind that you might be able to access a lot of this information online, which means you can get rid of paper copies– but verify this first and download copies to a few different locations (ensuring you remember where they are, of course).

HMRC also has a list of the recommended lengths of time and documents you should keep if you want any further reading.

Manufacturers’ warranties, receipts and user instructions

As soon as you buy a new TV, dishwasher or wardrobe, put all the paperwork together in one place.

At the very least, keep paperwork for the duration of the warranty and even once it has run out, you may be able to get a refund or a replacement product if you can show the item was faulty based on the date you bought it.

Keeping the receipt, warranty and instructions might also come in handy if you decide to sell the item and might well increase the amount you are able to charge if you can say the box it came in is complete.

Birth or adoption certificates and passports

You don’t need anyone to tell you that it's imperative you keep your birth certificate or passport. But, if you want to avoid a major panic when you’re travelling or needing to verify your ID, it is essential that you know where they are.

Keep them in a safe if you have one or designate a box or drawer for them. It’s also a good idea to make sure that your family – or any friends or neighbours that you trust – know where they are too, in case of an emergency.

If your passport has expired, while it is possible to send it away for destruction, it’s a better idea to just save it in a safe place away from your current passports (lest you accidentally take the old one on a trip).

It might contain current visas or hold stamps that bring back treasured memories – but even if you do decide to get rid of it, don’t use a shredder as modern passports are made of highly-durable material and could wreck your machine.

Renovations/repairs/upgrade paperwork

If your home or car has undergone repairs, you’ve had new windows put in, or you’ve had a conservatory renovation or the roof redone for example, do not throw away or destroy your paperwork that outlines the work done, when and who by.

The reason is simple – if you need to sell your home or car, buyers may want to see evidence of any work that’s been done. It’s not enough for you to show them your lovely new double-glazing, they’ll need to see the paperwork too. Similarly, they’ll want to see building regulation consent paperwork if you’ve had major renovation work done.

It’s not only about buying/selling, though – insurance companies may also request paperwork like this if your house suffers a fire, flooding or similar and you need to make a claim.

Deeds and conveyancing documents

Most homes are registered at the Land Registry so there’ll be an electronic entry of many of the details you need to hand, whenever you need it.

That said, old deeds sometimes contain details that aren’t in those electronic records, so it’s always worth keeping hold of them.

Covenants, for example, which can dictate what can be done with a property (not permitting the building of a block of flats, for example, or cutting down of trees) may only be referenced on the old paper deeds, so these are a good idea to file away safely.

Here’s what you can actually shred

Obviously, there’s no going back once the shredder has done its work. Our list will give you some pointers but, if you aren’t sure, it’s best to hold onto it and file it away in a place you can easily find it.

• Old bank statements (keep for up to six years if you’re self-employed)
• Cancelled cheques
• Employment contracts (keep for up to six years after you’ve left a company)
• Rental agreements (keep for up to seven years after vacating the property)
• Insurance documents
• P45 & P60s that are older than seven years but can be held until receiving pension for safety
• Receipts – once you are sure you no longer need proof of purchase

How to store and dispose of your paperwork

Once you've worked out what you do and don’t need to keep, you’ll need to get organised.

Jen Childs, owner of professional organising and decluttering service, House Calmer, says: “Effective filing solutions are unique to the person using them.

"Some people like multiple files with labels and categorisation. For example, finance, car, insurances, utilities. If that sounds like you, give it a go!”

“For others, a simple A4 lever arch file with punched pockets for slotting in your papers that come in on an annual basis can work well. This way you only have one file for each year.”

She adds: “Don’t buy filing solutions until you’ve worked out what you need to keep, how you want to file it and where it’s best to store everything.”

You might also find it helps switching to digital access and online accounts wherever possible as it will reduce the amount of paperwork you need to keep at home.

Start the process

Once you’ve decided what to file and how, don’t dive in just yet. You’ll also need to think about how you will dispose of the paperwork you don’t need to keep.

While some things can go straight in the recycling box, anything with personal details on it should be destroyed.

Jen Childs says: “With identity theft on the rise, take care when decluttering and disposing of your documents.”

One option is a shredder and, if you don’t have one already, you can pick one up from as little as £30-£40.

Alternatively buy an identity theft protection roller stamp to hide your personal information on any documents you are throwing away. These can be picked up for around £10.

Steps to stress-free paperwork organisation

1. Gather all your paperwork into one place.

2. Next, separate your paperwork into five different categories: action, archive, household, recycle and shred.

• Action: these are items you need to take action on before shredding. For example, invitations or parking tickets.
• Archive: these are documents you need to hang onto but don’t refer to regularly. This includes receipts, medical letters, tax returns, deeds, warranties and contracts.
• Household: This is everything that keeps your household running and that you might need to access relatively regularly. Bills, recipes, manuals or travel documents fall into this category.
• Recycle: anything that contains no personal information and doesn’t fall into the above categories. Think newspapers, junk mail, magazines and used envelopes.
• Shred: anything you no longer need but still contains personal information. This includes, statements, credit card offers and bills you no longer require.

3. Now for the fun part: Shredding documents that you no longer need.

Do this carefully and anything you’re unsure about, put to one side to review later.

4. You can now tackle the action, archive and household piles.

Place the action pile on your desk where you’ll see it, so you can work through it throughout the week.

5. For the archive pile, create file dividers for financial, home, work, car etc.

This pile will contain important documents, so we’d recommend storing your archive documents in a fire-proof box.These are available from around £30.

6. You can organise your household pile in the same way as your archive category, but we’d recommend storing it in an accessible place as you’ll need to refer to these documents most often.

Tackling that growing pile of paperwork can seem overwhelming, but you’ll feel so much lighter after doing so. Plus, once everything’s organised in its correct place, it’ll be so much easier to maintain and your documents shouldn’t spiral out of control again – plus they’ll be easy to process by other family members if you ever need to ask for their help.

By systematically working through paper clutter with our actionable list with a smart system, you’ll have all your documents stored and shredded within a day – and you can get back to enjoying life knowing you’ve got everything important at your fingertips.