How Long Should I Be Keeping Records For?

Whether you’re a seasoned business owner or just starting out, one question we get asked time and time again is: “How long do I need to keep my records?”

And it’s a great question, because when HMRC comes knocking (or emailing), having the right documentation in place can save you a lot of headaches — and potentially money too. But it’s not just about tax: keeping solid records can help you manage your business better, track progress, and spot problems early on.

In this blog, we’ll look at how long you’re legally required to keep your business records, what kinds of records are included, and offer a few helpful tips to stay organised.

Why Keep Records?

Let’s start with the basics. Good record-keeping isn’t just about satisfying HMRC — although that’s certainly important. Keeping accurate and complete records means you can:

• Track your income and expenses accurately

• Prepare correct accounts and tax returns

• Make better business decisions

• Provide evidence if HMRC ever asks for it

Now let’s get into the nitty-gritty.

How Long Should You Keep Financial Records?

The rules differ slightly depending on your business structure.

Sole Traders & Partnerships

HMRC requires sole traders and partners to keep records for at least 5 years after the 31 January submission deadline of the relevant tax year.

For example, for the 2023–24 tax year (which ended 5 April 2024), the Self Assessment deadline was 31 January 2025. This means you need to keep those records until at least 31 January 2030.

Limited Companies

If you run a limited company, the rules are a little stricter. You must keep company records for at least 6 years from the end of the accounting period they relate to — or longer if:

• They show a transaction that covers more than one accounting period

• The company has bought something it expects to last more than 6 years (like equipment or property)

• You sent your tax return late or are under investigation

What Kind of Records Are We Talking About?

It’s not just your end-of-year accounts. HMRC expects you to keep:

• Sales and income records (invoices, till rolls, sales books)

• Business expenses (receipts, bank statements)

• PAYE and payroll records

• VAT records if you're VAT registered

• CIS records if you’re in the construction industry

• Stock or inventory records

• Bank statements and cheque stubs

• Mileage logs and travel records

Basically: if money went in or out, keep a record of it.

Payroll Records (PAYE & CIS)

If you employ staff or subcontractors, you’ll need to hang on to your payroll records for at least 3 years from the end of the tax year they relate to. This includes:

• Employee pay details

• Deductions like Income Tax and National Insurance

• Statutory payments (maternity, paternity, sick pay, etc.)

• P11Ds and benefits records

• Any expenses reimbursed

• For CIS: verification details, payment records, and deduction statements

Even if you’ve stopped employing someone, HMRC may still request these records years later.

VAT Records

If you're VAT registered, you must keep VAT records and accounts for at least 6 years. These include:

• VAT invoices received and issued

• Records of goods bought and sold

• Import and export documents

• VAT account and returns

• Any adjustments or corrections made to returns

If you’re on a special VAT scheme (like Flat Rate, Margin, or Retail), you may need to keep additional documents.

Can I Keep Digital Records?

Absolutely! In fact, HMRC is encouraging digital record-keeping as part of its Making Tax Digital initiative.

You can keep records:

• On a computer or in cloud accounting software (like QuickBooks or Xero)

• As scanned copies or photos of paper documents

• On spreadsheets (though they must be MTD-compatible if you're required to file VAT or ITSA digitally)

Just make sure your digital records are accurate, readable, and backed up regularly. If HMRC asks for a copy, you should be able to produce it promptly.

Tip: don’t throw out the paper until you’re confident your digital copies are clear and complete.

Tips for Staying Organised

Let’s be honest — record-keeping isn’t the most glamorous part of running a business. But it doesn’t have to be a pain either. Here are some tips to keep things ticking along:

🔹 Get into a routine

Don’t leave it until January! Set aside time each week or month to update your records and file receipts.

🔹 Go paperless (if you can)

Use apps to snap receipts and import them into your accounting software automatically. No more shoeboxes of crumpled paperwork!

🔹 Separate business and personal finances

Having a dedicated business bank account makes everything cleaner and easier to track.

🔹 Label everything

Name your digital files in a way that’s easy to find (e.g. "2023-04 VAT Invoice SupplierName.pdf").

🔹 Keep backups

Whether you use cloud storage, an external drive, or both — make sure your records are safe if your laptop decides to give up the ghost.

Final Thoughts

Record-keeping might not be exciting, but it’s absolutely essential. Knowing how long to keep each type of record can help you stay compliant with HMRC, protect your business in case of queries or investigations, and just make life that little bit easier when tax season rolls around.

So if you’ve ever stared at a pile of paperwork and wondered “Can I throw this away yet?” — now you know!