For most UK limited companies, six years is the key record-keeping benchmark for tax and accounting records. However, there is an important distinction between the different rules that apply to company records, Corporation Tax, VAT, PAYE, and other business documents. Some records can have a shorter statutory retention period, while others need to be kept for longer because of the nature of the transaction, an ongoing HMRC enquiry, or another legal requirement.

For a business owner, the safest approach is not to ask only, "Has this document reached six years?" The better question is: What is this record used for, and is there any reason I still need to keep it? This guide explains how long UK companies should keep different types of business records, what documents should be retained, and how to build a practical system for managing records without keeping unnecessary paperwork forever.

Why Do UK Companies Have to Keep Business Records?

Business records provide evidence of how a company operates financially. They can show:

• What the company earned
• What it spent
• Which assets it owns
• What it owes
• What customers owe it
• How tax calculations were made
• Why particular expenses were claimed
• How figures in the annual accounts were calculated

Companies House requires companies to maintain accounting records, while HM Revenue and Customs (HMRC) can check records to establish whether a company's tax position is correct. GOV.UK says companies must keep accounting records covering money received and spent, assets, liabilities, stock, goods bought and sold, and other information needed to prepare accounts and the Company Tax Return. Good records also protect the company. If HMRC questions a £15,000 expense, for example, a proper invoice, payment record, contract and explanation of the business purpose can provide a much stronger evidence trail than a bank statement alone.

How Long Do UK Companies Need to Keep Business Records?

For most private limited companies, six years from the end of the last company financial year the records relate to is the central practical rule for tax and accounting records. GOV.UK states that companies must keep records for six years from the end of the relevant company financial year, with longer retention required in certain circumstances. These include transactions covering more than one accounting period, assets expected to last more than six years, late Company Tax Returns, and ongoing HMRC compliance checks.

However, there is an important technical distinction. Under the Companies Act rules, private companies generally have to retain accounting records for three years from the date they were made, while public companies generally have a six-year requirement. But Corporation Tax record-keeping rules commonly extend the practical retention period for a private company to six years. HMRC explicitly notes this distinction in its guidance. In other words, a private company should not assume that it can simply destroy accounting records after three years. For many records, six years is the safer working standard.

Business Record Retention Periods at a Glance

The following table provides a practical overview:

These are general retention periods. The correct period can depend on the document, tax regime and circumstances.

What Business Records Should a UK Company Keep?

A company should maintain enough information to explain its financial position and support the figures reported to HMRC and Companies House.

1. Sales and Income Records

Keep records showing money received by the company. These may include:

• Sales invoices
• Customer contracts
• Receipts
• Credit notes
• Sales reports
• Till records
• Online marketplace reports
• Payment processor statements
• Other income records

For an ecommerce company, for example, it may be necessary to retain records from its online store, payment processor and business bank account. The objective is to create a trail from the original sale through to the money appearing in the company's accounts.

2. Purchase and Expense Records

Keep evidence of money the company spends. Examples include:

• Supplier invoices
• Receipts
• Purchase orders
• Delivery notes
• Expense claims
• Business credit card records
• Software subscription invoices
• Advertising invoices
• Professional fees
• Travel records

The supporting documentation should make it possible to understand what was purchased and why it was a business expense. A £2,000 bank payment labelled "services" is much less useful than a supplier invoice, contract and payment record that explain exactly what the company received.

3. Bank Statements

Business bank statements are essential financial records. They help establish:

• Customer receipts
• Supplier payments
• Tax payments
• Payroll
• Bank charges
• Loan payments
• Director transactions
• Transfers between accounts

GOV.UK recommends keeping company finances separate from the finances of directors and owners, with a business bank account being the simplest way to maintain that separation. For founders, this is one of the easiest record-keeping habits to establish from day one.

4. Accounting Records

Companies should retain the accounting information used to prepare their financial statements and tax returns. Depending on the business, this can include:

• General ledger
• Sales ledger
• Purchase ledger
• Cash book
• Trial balance
• Profit and loss records
• Balance sheet records
• Journal entries
• Stock records
• Fixed asset register

Companies House guidance confirms that every company must keep accounting records, including records of money received and spent and information about its assets and liabilities.

Corporation Tax Records

Corporation Tax records are particularly important because the company needs to be able to support the figures reported in its Company Tax Return. These can include evidence relating to:

• Turnover
• Business expenses
• Taxable profits
• Capital expenditure
• Capital allowances
• Interest
• Losses
• Tax adjustments
• Tax payments
• Relevant transactions

The general retention period is six years from the end of the relevant financial year, but HMRC rules can require records to be retained for longer in particular circumstances.

What if HMRC starts an enquiry?

This is one of the most important exceptions to remember. If HMRC has started a compliance check into a Company's Tax Return, records relating to that matter may need to be kept beyond the normal retention period. GOV.UK specifically identifies an ongoing HMRC compliance check as a reason records may need to be retained for longer. So a company should not automatically delete records simply because six years have passed.

How Long Should You Keep VAT Records?

If your company is VAT registered, the general rule is to keep VAT records for at least six years. VAT records can include:

• VAT invoices
• Copies of sales invoices
• Purchase invoices
• Credit notes
• VAT account
• Sales records
• Purchase records
• Relevant correspondence
• Import and export documentation

GOV.UK confirms that VAT records generally need to be kept for at least six years. Certain businesses using the VAT One Stop Shop (OSS) or legacy Mini One Stop Shop (MOSS) arrangements have a 10-year retention requirement. VAT businesses also need to consider Making Tax Digital requirements where applicable. Certain VAT records must be maintained digitally unless the business qualifies for an exemption.

Example

Suppose a company issued a VAT invoice in September 2026. That invoice should not be treated as disposable simply because the customer has already paid it. It forms part of the company's VAT and accounting evidence and should normally remain accessible for the required retention period.

How Long Should You Keep PAYE Records?

PAYE has a different standard retention period. HMRC says employers must keep PAYE records for three years from the end of the tax year they relate to. These records include information about employee pay, deductions, reports submitted to HMRC, payments made to HMRC, employee leave and sickness, tax code notices, and taxable expenses or benefits. For example, PAYE records relating to the 2025/26 tax year should generally be retained for three years from the end of that tax year.

However, payroll information can also intersect with other legal or tax requirements. If a record has multiple purposes, consider the longest applicable retention period rather than deleting it simply because the PAYE period has expired.

What About Company Records That Are Not Tax Records?

Not every important business document is primarily a tax record. Companies should also retain important corporate records, such as information concerning:

• Shareholders
• Share transactions
• Shareholder resolutions
• Company loans
• Mortgages secured against company assets
• Debentures
• Indemnities
• Other significant company decisions

GOV.UK distinguishes these company records from accounting records, but both categories are part of responsible company administration. A company should therefore avoid creating a filing system that contains only invoices and tax returns.

How Long Should You Keep Contracts?

Contracts do not have one universal UK retention period. A practical approach is to retain important contracts for as long as they are relevant and for an appropriate period after they end. This is particularly important for:

• Customer contracts
• Supplier agreements
• Employment agreements
• Loan agreements
• Lease agreements
• Intellectual property agreements
• Shareholder agreements
• Major service contracts

A contract can provide evidence explaining a financial transaction years after the payment was made. For that reason, it is often sensible to keep contracts longer than the minimum period that applies to a related invoice.

What About Records for Business Assets?

Assets can create longer record-keeping requirements. Suppose your company buys a piece of machinery that is expected to last 10 years. The purchase invoice should not necessarily be treated like an ordinary six-year document. GOV.UK specifically says company records may need to be kept longer where they relate to something the company expects to last more than six years, such as equipment or machinery. Keep records such as:

• Purchase invoice
• Date acquired
• Purchase price
• Installation costs
• Financing documents
• Capital allowance calculations
• Depreciation information
• Repairs and improvements
• Disposal documentation
• Sale proceeds

The same principle can apply to property and substantial improvements.

Should You Keep Records After a Company Closes?

Closing a company does not mean that all records should immediately be destroyed. If a company is being dissolved, sold, liquidated or otherwise closed, its directors should consider the applicable tax, accounting and legal obligations before disposing of records. This is particularly important where:

• HMRC has open enquiries
• Tax returns remain outstanding
• The company has unresolved liabilities
• Assets have recently been sold
• There are ongoing disputes
• The company has been involved in litigation

There is also a separate issue concerning Companies House records. Companies House retains records of active companies, while records of dissolved companies are currently retained for 20 years under its policy. Companies House announced in May 2026 that it is reviewing the retention period for dissolved company records and has paused destruction and transfer activity during the review. That is different from the obligation of the company itself to retain its own business and tax records.

Can You Keep Business Records Digitally?

Yes. A modern company does not need to maintain rooms full of paper files. Digital records can include:

• PDF invoices
• Scanned receipts
• Digital bank statements
• Accounting software records
• Electronic contracts
• Payroll reports
• VAT records
• Email correspondence
• Cloud-based financial documents

The key is not whether the record is paper or digital. It is whether the information remains accurate, accessible and usable when needed. For VAT-registered businesses subject to Making Tax Digital, specific digital record-keeping requirements also apply.

A Better Way to Organise Digital Business Records

A simple structure can prevent years of accounting chaos. For example: Company Records

• Incorporation
• Shareholders
• Directors
• Resolutions
• PSC information

Finance

• Sales
• Expenses
• Bank
• Loans
• Assets

Tax

• Corporation Tax
• VAT
• PAYE
• HMRC correspondence

Contracts

• Customers
• Suppliers
• Employees
• Property
• Professional services

Then organise financial records by financial year. For example:

Finance → 2026 → Sales → September

This makes it considerably easier for a director or accountant to locate a document later.

Should You Keep Everything Forever?

Not necessarily. Keeping every document indefinitely can create unnecessary storage, privacy and security risks. The better approach is to establish a retention schedule. For every category of record, determine:

1. What is the document?
2. What law or tax rule applies?
3. When does the retention period begin?
4. What is the minimum retention period?
5. Does another rule require it to be kept longer?
6. Is there an ongoing enquiry, dispute or transaction?
7. Can it safely be destroyed once the relevant period expires?

When a document has multiple purposes, use the longest applicable retention period. This avoids a common mistake: deleting a document because one obligation has expired while another obligation still applies.

What Happens If Business Records Are Lost?

If records are lost, stolen or destroyed and cannot be replaced, the company should act promptly. GOV.UK says companies should do their best to recreate missing records, tell their Corporation Tax office straight away, and include relevant information in the Company Tax Return. This is why backups are so important. A sensible business should avoid having its entire financial history stored only:

• On one laptop
• On one hard drive
• Inside one email account
• In one accounting platform without an export or backup strategy

For important records, consider secure cloud storage alongside appropriate backups and access controls.

What Are the Risks of Poor Record Keeping?

Poor records can create much more than inconvenience. They can lead to:

• Incorrect tax calculations
• Unsupported expense claims
• Difficulty responding to HMRC
• Delayed accounts
• Problems with accountants
• Difficulty proving ownership or transactions
• Increased administrative costs
• Potential penalties

GOV.UK states that a company can be fined £3,000 by HMRC or face director disqualification for failing to keep accounting records. The bigger lesson is that record keeping should not be treated as something to fix when an accountant asks for the documents at year-end. It should be part of the company's normal operating process.

Record Keeping for International Founders

For non-UK residents running UK companies remotely, good record management becomes even more useful. A global founder may have:

• A UK company bank account
• International payment processors
• Customers in several countries
• Foreign-currency transactions
• Overseas contractors
• UK tax obligations
• Accounting records maintained remotely

A central digital system can help keep these records together. If a founder is working with an accountant in the UK, the accountant should be able to access the relevant records without searching through personal email accounts, messaging applications or multiple cloud drives.

IncorpUK, as a UK company formation and management platform for global founders, sits within this wider company-management environment by providing company management resources and support for entrepreneurs operating UK companies remotely. It should not, however, be viewed as a substitute for professional accounting or tax advice where a company's circumstances are complex.

A Practical Business Record Retention Checklist

Review your records regularly and make sure you can locate:

Financial records

• Sales invoices
• Purchase invoices
• Receipts
• Bank statements
• Accounting ledgers
• Annual accounts
• Asset records

Tax records

• Corporation Tax returns
• Corporation Tax calculations
• VAT returns and supporting records
• PAYE reports
• HMRC correspondence
• Tax payment records

Company records

• Shareholder information
• Share transactions
• Resolutions
• Director information
• Loans and security documents

Supporting documents

• Contracts
• Loan agreements
• Asset purchase documents
• Expense evidence
• Important business correspondence

Security

• Cloud backup
• Secondary backup
• Access controls
• Document retention schedule
• Recovery plan

Frequently Asked Questions

How long should a UK company keep business records?

For most tax and accounting records of a UK limited company, six years from the end of the relevant company financial year is the key practical retention period. Certain records and circumstances require longer retention.

Is the company accounting record period three years or six years?

Both periods can appear in the rules because they come from different legal requirements. Private companies generally have a three-year Companies Act retention period for accounting records, but tax rules can require relevant records to be kept for six years. HMRC specifically explains that tax law extends the practical period for private companies.

How long should VAT records be kept?

VAT records generally need to be kept for at least six years. Certain businesses using the VAT OSS or legacy MOSS schemes have a 10-year requirement.

How long should PAYE records be kept?

PAYE records must generally be kept for three years from the end of the tax year they relate to.

Can business records be stored electronically?

Yes. Many business records can be maintained electronically. VAT-registered businesses should also check whether Making Tax Digital requirements apply to them.

Should I keep business records for longer than six years?

Sometimes. Longer retention may be appropriate where records relate to long-term assets, transactions covering multiple accounting periods, late tax returns, ongoing HMRC enquiries, or another legal obligation.

What happens if HMRC is investigating my company?

Do not destroy relevant records simply because the normal retention period has expired. GOV.UK specifically identifies an HMRC compliance check as a circumstance in which records may need to be retained for longer.

Should a dissolved company keep its records?

Closing or dissolving a company does not mean its own tax and business records can immediately be discarded. Directors should consider outstanding tax, legal and accounting obligations before disposing of records.

Can I throw away receipts after six years?

If the applicable retention period has expired and there is no other reason to retain the receipt, it may be possible to dispose of it. But first check whether the document relates to an asset, ongoing enquiry, dispute or another obligation requiring longer retention.

Conclusion

For most UK companies, six years is the key number to remember when thinking about business and tax records. But it is not a universal rule for every document. PAYE records generally have a three-year retention period, VAT records generally require six years, and certain records may need to be retained considerably longer. Long-term assets, late tax returns, HMRC enquiries and documents with multiple purposes can all change the calculation.

The smartest approach is to build a record-keeping system from the beginning rather than trying to reconstruct the company's history years later. Keep invoices, receipts, bank records, contracts, payroll information, tax documents, asset records and company records organised and securely backed up. When a document serves more than one purpose, follow the longest applicable retention period.

For founders managing a UK company from overseas, this discipline is especially valuable. A well-organised digital record system makes it easier to work with accountants, respond to HMRC, prepare accounts and understand the financial history of the business. Good record keeping is not about keeping every piece of paper forever. It is about keeping the right evidence for the right amount of time—and being able to find it when you need it.