
Free Business Review
Claim your Free Business Review to understand what options are available to you.
Require Immediate Support? Free Director Helpline: 0800 644 6080
Free Director Helpline: 0800 644 6080
Published:
Written by: Jonathan Munnery
You should keep your limited company business records for six years from the end of the accounting period. Some documentation will need to be kept for 10 years, including the company’s statutory books and board meeting minutes. If you are self-employed, it is advised you keep records for at least five years.
60 Second Test Find Your Nearest Office
Severe penalties can be imposed for businesses that fail to produce business and accounting records when requested by HMRC. These fines can potentially amount to several thousand pounds or more.
Lack of physical space in which to store records can be an issue for some businesses, but you can keep them digitally rather than in paper form if you wish – you just need to bear in mind that they must be clearly legible.
Exactly how long you need to retain your records depends on your business structure – essentially, whether you’re self-employed or run a limited company. If you’re an employer, regardless of your business structure, you also have certain liabilities when it comes to the retention of documents.
Don't Worry - There are thousands of other company directors going through the same process. No matter what position you are in and need looking for options, speak to a member of the Real Business Rescue team. It's Free & Confidential.
The team are available now - 0800 644 6080
If you’re a sole trader or in an unincorporated business partnership, you need to retain your business records for at least five years after 31st January of the relevant tax year. These records include all sales documentation, business expenses, personal income, money paid into and withdrawn from the business, as well as VAT and PAYE information if applicable.
Being the subject of an HMRC investigation means you’ll need to retain these records until HMRC advises you otherwise. In all cases, the required records generally include bank statements, sales receipts, purchase invoices, cheque book stubs, and VAT documentation.
If you’ve received a government grant, you should generally retain the documentation for a period of four years from the date of receiving the grant.
The rules for limited companies are a little different, and there’s more documentation to consider. In addition to the records mentioned above, limited company directors need to retain other documents including but not limited to, details of business assets, liabilities, loans secured against the company’s assets, and shareholder transactions.
In general, company records must be retained for around six years from the end of the accounting period. But some documentation needs to be kept for 10 years, including:
You must keep PAYE records for three years from the end of the tax year to which they relate. These include notices of tax codes, payments to employees and to HMRC, details of employee sickness and leave, any taxable expenses or taxable benefits.
If your company is struggling with unmanageable debts, squeezed cash flow, or an uncertain future, you are far from alone. We speak to company directors just like you every single day, and we are here to give you the help and advice you need.
Call our team today on 0800 644 6080
If any business records have been lost or stolen, you should inform HMRC straight away. They may request that you try to recreate the documents, but financial penalties of up to £3,000 can be applied if you fail to produce the required records when requested.
For more information on which business records to keep, and for how long, our experts at Real Business Rescue can help. We have vast experience of dealing with HMRC, and can advise on how to approach the situation should you be unable to produce records when requested. Our extensive office network comprises 100+ offices across the UK with a partner-led service offering immediate director advice and support.
All UK sectors are experiencing specific challenges at present, particularly in light of the Covid-19 pandemic. Find out how your sector is performing here.
Simply search your Limited Company Name or Company Number
We will also check if you’re eligible for Director Redundancy
We provide free confidential advice with absolutely no obligation.
Our expert and non-judgemental team are ready to assist directors and stakeholders today.
Claim your Free Business Review to understand what options are available to you.
Find your nearest office - we have more than 100 across the UK. Remote Video Meetings are also available.
Free, confidential, and trusted advice for company directors across the UK.