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Storage of Documents in Electronic Format

Document storage is giving increasing concern to practices; and in today’s economic climate you may want to consider electronic storage of records, and possibly invoicing clients electronically. However, you need to consider the views of both HM Revenue and Customs and The Law Society/SRA.

HM Revenue and Customs

HM Revenue and Customs requirements state that if you want to store your records in electronic format you must be able to ensure the authenticity and integrity of your invoice data during and after application processing. You must also be able to readily recreate the information in a readable format. Storage in a PDF format will suffice.

If you invoice clients electronically, the invoice must contain the same information as a paper version, and there is no longer any requirement to inform HM Revenue and Customs before you adopt this method of invoicing. The invoices must be transmitted in a secure environment using industry accepted technology such as http-s, SSL, S-MINE or SSL, so that you can ensure the authenticity and integrity of your invoice data during transmission between trading parties.

The Law Society and Solicitor Regulation Authority

There has been a reasonable amount of discussion about the topic of document ownership, storage and destruction over the last 6 years. The Law Society guidance in June 2004 states that original documents such as deeds, guarantee or certificates which are owned by clients or anyone outside the practice should not be destroyed without the express written permission of the owner. Where work has been completed and the bill paid, other documents, including the client file may be stored in electronic format and then the original destroyed. In cases of doubt the owner’s written permission should always be sought. The Law Society also consider the evidential value of photographically or electronically stored documents where the original has been destroyed. The Law Society has been advised that:

· A microfilm of any document in a solicitor’s file will be admissible evidence to the same extent, no more no less, as the document itself, provided that there is admissible evidence of the destruction of the document and identification of the copy.

· Written evidence of the destruction of the original and of identification of the copy will enable the microfilm to be adduced in subsequent civil proceedings (under the Civil Evidence Act 1968) and in criminal proceedings (under the Police and Criminal Evidence Act 1984)

The Law Society therefore recommend the following procedures where an original document is stored electronically or photographically and then the original is destroyed.

· Written evidence of the original and of identification of the copy must always be preserved in case oral evidence is no longer available when needed.

· Have a proper system for:

Identifying each file or document destroyed

Recording that the complete file or document has been photographed or electronically generated, including details of the operator

Preserving and indexing the electronic copies

· If electronically stored data is required to be produced in evidence, a partner or senior member of staff should be able to certify that:

The original document has been destroyed

The electronically stored data is a true record of that document

The enlargement is an enlargement of the microfilm, electronically or photographically stored data.

· Microfilm copies of some documents (e.g. coloured plans) can be unsatisfactory, in which case the originals should be preserved.

Data Protection Act 1998

All personal data which is held in electronic format, including scanned documents which were formerly held in hard copy, are subject to the Act.

For more information on how this article relates to you or your firm, call us today on 0845 330 3200.

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Storage of Documents in Electronic Format

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	News News \| Newsletters \| Subscribe Storage of Documents in Electronic Format Document storage is giving increasing concern to practices; and in today’s economic climate you may want to consider electronic storage of records, and possibly invoicing clients electronically. However, you need to consider the views of both HM Revenue and Customs and The Law Society/SRA. HM Revenue and Customs HM Revenue and Customs requirements state that if you want to store your records in electronic format you must be able to ensure the authenticity and integrity of your invoice data during and after application processing. You must also be able to readily recreate the information in a readable format. Storage in a PDF format will suffice. If you invoice clients electronically, the invoice must contain the same information as a paper version, and there is no longer any requirement to inform HM Revenue and Customs before you adopt this method of invoicing. The invoices must be transmitted in a secure environment using industry accepted technology such as http-s, SSL, S-MINE or SSL, so that you can ensure the authenticity and integrity of your invoice data during transmission between trading parties. The Law Society and Solicitor Regulation Authority There has been a reasonable amount of discussion about the topic of document ownership, storage and destruction over the last 6 years. The Law Society guidance in June 2004 states that original documents such as deeds, guarantee or certificates which are owned by clients or anyone outside the practice should not be destroyed without the express written permission of the owner. Where work has been completed and the bill paid, other documents, including the client file may be stored in electronic format and then the original destroyed. In cases of doubt the owner’s written permission should always be sought. The Law Society also consider the evidential value of photographically or electronically stored documents where the original has been destroyed. The Law Society has been advised that: · A microfilm of any document in a solicitor’s file will be admissible evidence to the same extent, no more no less, as the document itself, provided that there is admissible evidence of the destruction of the document and identification of the copy. · Written evidence of the destruction of the original and of identification of the copy will enable the microfilm to be adduced in subsequent civil proceedings (under the Civil Evidence Act 1968) and in criminal proceedings (under the Police and Criminal Evidence Act 1984) The Law Society therefore recommend the following procedures where an original document is stored electronically or photographically and then the original is destroyed. · Written evidence of the original and of identification of the copy must always be preserved in case oral evidence is no longer available when needed. · Have a proper system for: Identifying each file or document destroyed Recording that the complete file or document has been photographed or electronically generated, including details of the operator Preserving and indexing the electronic copies · If electronically stored data is required to be produced in evidence, a partner or senior member of staff should be able to certify that: The original document has been destroyed The electronically stored data is a true record of that document The enlargement is an enlargement of the microfilm, electronically or photographically stored data. · Microfilm copies of some documents (e.g. coloured plans) can be unsatisfactory, in which case the originals should be preserved. Data Protection Act 1998 All personal data which is held in electronic format, including scanned documents which were formerly held in hard copy, are subject to the Act. For more information on how this article relates to you or your firm, call us today on 0845 330 3200. Pre-Budget Update 2008 - VAT for Law Firms bennettbrooks launch CPD accredited seminars for solicitors

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