How Long Should You Keep Business Records?

Who this guide is for

This guide is for limited company directors, sole traders, landlords, CIS subcontractors and small business owners who want to know what records to keep and for how long.

What records should a business keep?

The exact records depend on the business, but they often include:

• sales invoices
• purchase invoices
• receipts
• bank statements
• payroll records
• VAT records
• CIS deduction statements
• mileage records
• dividend records
• loan agreements
• contracts
• accounting adjustments

The records should be clear enough to explain the business's transactions and tax position.

Limited company record keeping

Limited companies must keep company and accounting records.

Accounting records should show money received and spent, assets owned, debts owed, stock where relevant and enough detail to prepare accounts and tax returns.

Companies normally need to keep records for 6 years from the end of the financial year they relate to, or longer in some circumstances.

Self-employed record keeping

Self-employed people need records of business income and expenses for Self Assessment.

HMRC says records should normally be kept for at least 5 years after the 31 January submission deadline for the relevant tax year.

For example, if a return is due by 31 January 2028, records may need to be kept until at least the end of January 2033.

VAT, payroll and CIS records

If your business is VAT registered, payroll registered or operating under CIS, additional records will be needed.

VAT records may include VAT invoices, returns, adjustments and digital records. Payroll records may include payslips, PAYE reports, starter information and year-end forms. CIS records may include verification, statements and monthly returns.

Digital records

Digital records can make accounting easier, especially where VAT or Making Tax Digital applies.

However, simply having bank transactions is not enough. You still need evidence that explains what the transactions were for.

For example, a card payment to a supplier does not prove what was bought unless you also keep the invoice or receipt.

Common mistakes

A common mistake is keeping bank statements but losing invoices and receipts.

Another mistake is deleting records too early because a tax return has been filed. HMRC can still ask questions later.

Some business owners also mix personal and business spending, which makes record keeping harder and creates extra explanation work.

What to do next

To improve record keeping:

1. Use a separate business bank account where possible.
2. Save invoices and receipts digitally.
3. Keep payroll, VAT and CIS records separately.
4. Reconcile your financial records regularly.
5. Keep records for the required period.
6. Ask your accountant what they need before year end.