What Records to Keep (and how long for)
- 3 days ago
- 4 min read
Keeping business records isn’t just a “good admin habit” it protects you if HMRC ever asks questions, helps your accountant/bookkeeper do their job properly, and makes it far easier to understand how your business is really performing.
This guide covers what to keep, how long to keep it, and a few practical tips to make it painless.
First: why record-keeping matters (beyond “because HMRC”)
Good records help you:
Prove your income and expenses (so you claim what you’re entitled to)
Avoid missed deadlines and penalties
Spot cash flow issues earlier
Back up warranty/insurance claims
Resolve disputes (e.g., “we never received that invoice”)
Sell your business one day (buyers love tidy records)
The key rule (UK): keep records for at least 6 years
For most UK businesses, a solid rule of thumb is:
Keep business records for at least 6 years.
That generally covers the period HMRC may look back when checking returns.
If you’re self-employed / a sole trader
You should keep records relating to your Self Assessment return for a minimum period after the relevant tax year. In practice, keeping everything for 6 years is the simplest, safest approach.
If you run a limited company
Companies have additional legal obligations. Again, 6 years is a sensible minimum for most financial records, and some company records should be kept longer.
Note: rules can vary depending on your business type and circumstances. If you’re unsure, ask your bookkeeper/accountant for advice based on your setup.
What records should you keep?
1) Sales and income records
Keep anything that supports the money coming into the business:
Sales invoices you issue
Till receipts / EPOS reports (if relevant)
Online sales reports (Shopify, Etsy, Amazon, Stripe, PayPal etc.)
Bank statements showing income
Contracts, statements of work, booking confirmations
Why it matters: If HMRC queries your turnover, you need a clear trail from “work done” to “money received.”
2) Purchase and expense records
Keep evidence of what you spend and why it’s business-related:
Supplier invoices and receipts
Mileage logs (if you claim mileage)
Travel receipts and booking confirmations
Subscriptions (software, memberships)
Home office costs (if claimed)
Petty cash records (if you use petty cash)
Why it matters: No receipt usually means no claim and you don’t want to miss legitimate expenses.
3) Banking and payment records
These are the backbone of your bookkeeping:
Business bank statements
Credit card statements
Loan agreements and repayment schedules
Payment processor reports (Stripe, GoCardless, PayPal)
Why it matters: They help reconcile what you think happened with what actually happened.
4) VAT records (if you’re VAT registered)
VAT requires extra care. Keep:
VAT returns
VAT account (summary of output/input VAT)
Sales and purchase invoices that support VAT claimed
Evidence for zero-rated/exempt items (where relevant)
Why it matters: VAT inspections are often about evidence, having it ready saves a lot of stress.
5) Payroll records (if you employ staff)
If you have employees, keep:
Payroll reports
PAYE records
P60s/P45s
Pension contributions and auto-enrolment records
Employment contracts and changes to terms
Why it matters: Payroll errors can be expensive. Records protect you and your team.
6) CIS records (if you’re in construction)
If you’re a contractor/subcontractor under CIS, keep:
CIS statements
Verification details
Payment and deduction records
Why it matters: CIS can get messy quickly, good records prevent overpaying or underclaiming.
7) Asset and equipment records
For anything you buy that lasts longer than a year (laptops, machinery, tools, vehicles), keep:
Purchase invoices
Warranty documents
Insurance documents
Finance/lease agreements
Disposal/sale records
Why it matters: Useful for capital allowances, insurance claims, and proving ownership.
8) Contracts, legal and compliance documents
Keep:
Client/supplier contracts
Terms and conditions
NDAs
Licences and permits
Insurance policies and claims
Why it matters: If there’s a dispute, these are your “proof.”
9) Company records (limited companies)
If you run a limited company, also keep:
Annual accounts and Corporation Tax filings
Confirmation statements
Dividend paperwork
Director loan account records (if relevant)
Shareholder and director decisions (minutes/resolutions)
Why it matters: These are part of your legal obligations as a company.
How long should you keep each type of record?
Here’s a simple, practical approach that works for most UK businesses:
Record type | Keep for |
Sales invoices, purchase receipts, bank statements | 6 years |
VAT records (if registered) | 6 years |
Payroll records | 6 years |
Contracts and insurance documents | 6 years (often longer if ongoing) |
Asset/equipment purchase records | 6 years after disposal |
Limited company statutory records (company formation, share structure, key decisions) | Keep indefinitely |
If you want a “set and forget” rule: keep everything financial for 6 years, and keep company formation/statutory records forever.
Paper vs digital: can you keep records electronically?
Yes and for most businesses, digital is easier and safer.
Tips:
Scan or photograph receipts as soon as you get them- use software such as Dext or Apron
Use cloud storage (and back it up)
Keep a clear folder structure by tax year
Make sure files are readable and easy to retrieve
A quick win: name files like 2026-02-17_SupplierName_£Amount so you can search later.
What happens if you don’t keep good records?
At best: you waste time and miss expenses.
At worst: you risk penalties, pay more tax than you should, or struggle to defend your numbers if HMRC asks questions.
If you want this to be easier, not harder
If record-keeping is currently a “shoebox and a prayer” situation, you’re not alone.
At Josie Dayment Bookkeeping we can help you set up a simple system that fits your business. Whether that’s a tidy cloud folder setup, a receipt capture app, or a process that links your invoicing and payments to your bookkeeping.
If you’d like support getting your records organised (and keeping them that way), reach out to your bookkeeper/accountant for a quick chat.
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