Running a limited company means keeping proper records for HMRC and Companies House. Even if you're not VAT registered, there are essential documents you must retain. This guide explains what you need to keep and for how long.
Under the Companies Act 2006, all limited companies must keep adequate accounting records. Failure to do so can result in fines and disqualification of directors.
You need these records to complete your Corporation Tax return accurately and to respond to any HMRC enquiries about your tax affairs.
Annual accounts filed at Companies House must be prepared from your company's records, ensuring transparency and legal compliance.
Good record-keeping helps you understand your financial position, manage cash flow, and make informed business decisions.
Important: Directors can be personally fined up to £5,000 and disqualified for failing to keep proper company records.
You must keep records for at least
6 Years
from the end of the financial year they relate to
This applies to most business records including invoices, bank statements, and financial documents.
All money coming into your business
Sales invoices
Copies of all invoices issued to customers
Receipt books and till rolls
Records of cash and card payments received
Bank deposit slips
Evidence of money paid into your business bank account
Sales day book or sales ledger
Summary of all sales transactions
All money going out of your business
Purchase invoices
Invoices from suppliers for goods or services purchased
Receipts for cash purchases
Proof of business expenses paid in cash
Expense claims
Records of employee or director expense reimbursements
Purchase day book or ledger
Summary of all purchase transactions
Mileage logs
Detailed records of business journeys if claiming mileage
Evidence of all financial transactions
Bank statements
All business bank and credit card statements
Paying-in books
Records of deposits made to your account
Cheque book stubs
Details of payments made by cheque
Bank reconciliations
Monthly records matching your books to bank statements
Employee pay and tax records
Payroll records and calculations
PAYE records
National Insurance records
Employee contracts
P45s and P60s
Pension scheme records
Note: Even if you only employ yourself as a director, keep records of director's salary and dividends paid.
Equipment and property owned by the company
Fixed asset register
List of all company equipment, vehicles, property, and machinery
Purchase invoices for assets
Proof of purchase for capital items
Depreciation schedules
Records showing how assets lose value over time
Disposal records
Documentation when assets are sold or written off
Legal documents required by Companies House
Certificate of Incorporation
Memorandum and Articles of Association
Register of directors
Register of shareholders
Register of People with Significant Control (PSC)
Share certificates
Minutes of board meetings
Written resolutions
Copies of filed annual accounts
Confirmation statements
Warning: These statutory records must be kept for the life of the company and for at least 6 years after the company is dissolved.
Additional records for good practice
Contracts with customers and suppliers
Loan agreements
Insurance policies
Lease and rental agreements
Correspondence with HMRC and Companies House
Import/export documentation (if applicable)
Best Practice: Use cloud accounting software like FreeAgent, Xero, or QuickBooks to keep digital records automatically. Take photos of paper receipts and upload them to your accounting system.
Directors can be fined up to £5,000 for inadequate record-keeping
Serious failures can lead to being banned from being a company director
Poor records increase the likelihood of tax enquiries and investigations
Difficulty obtaining loans, credit, or proving income when needed
Use accounting software
Cloud-based software automates much of the record-keeping process
Keep everything organised
File documents systematically, either digitally or physically
Update records regularly
Don't let paperwork pile up - update weekly or monthly
Back up digital records
Use cloud storage or external drives to prevent data loss
Get professional help
An accountant can ensure your systems meet legal requirements
At Taxwise Accountancy, we help limited companies maintain compliant and organised records. We can support you with bookkeeping, accounting software setup, and ensuring all statutory requirements are met.
Professional bookkeeping to keep your records compliant
Get FreeAgent or Xero configured correctly
Annual accounts and Companies House filing
Whether you need help setting up your systems, catching up on backlog, or ongoing support, our expert accountants are here to make record-keeping simple.
Sales invoices and income records
Purchase invoices and expenses
Bank statements and reconciliations
Payroll records (if applicable)
Fixed asset register
Statutory company documents
Keep all records for at least 6 years