cheap accountants - records

We are often asked by clients for what length of time they should keep on file their main accounting records for their limited company so we thought we would prepare a short blog update to address and answer this question. This narrative will explain what is meant by the term accounting records and then go on to confirm how long these records should be held for.

Accounting Records

It is a legal requirement for all limited company directors to maintain sufficient company and accounting records. A director must maintain certain records about the company itself in addition to financial records.

Some typical examples of company records are the forms that are required to be filed with Companies House, such as the Confirmation Statement, including the PSC register and shareholder listings.

Typically, your accounting records will include records of:

1. Money spend by the company, such as receipts.

2. Money received by the company, such as invoices and till rolls.

3. Other items such as company bank account statements.

How long should I keep these records?

Generally speaking, you will need to retain the above accounting records for a period of 6 years from the end of the last company financial year.

This is why we often advise clients to keep these records on file for 7 years just in case. If you are towards the end of an accounting period then some of your accounting records will be closer to being 7 years old than a straight six years.

What happens if I don’t keep any accounting records?

To put it in simple terms, you can be fined £3,000 by HMRC or be disqualified as a company director.