How long do you need to keep business records?

Short answer

Limited companies must keep accounting records for at least 6 years from the end of the financial year they relate to. Sole traders must keep Self Assessment records for at least 5 years after the 31 January deadline. VAT records must be kept 6 years, and PAYE records 3 years — even after a business closes.

The retention period depends on your business structure and the type of record, and the obligation does not end when the business does.

The key retention periods

Limited company accounting records: at least 6 years from the end of the financial year they relate to.
Sole trader Self Assessment records: at least 5 years after the 31 January submission deadline for the relevant tax year.
VAT records: 6 years.
PAYE and payroll records: 3 years after the end of the tax year.

"Records" means everything that supports your figures: invoices, receipts, bank statements, and payroll records for all income and expenditure. HMRC can inspect them on request, and failing to keep adequate records can attract penalties of up to £3,000 per tax year. Digital records are fully acceptable — you can scan paper receipts and discard the originals provided the copies are legible and complete — and under Making Tax Digital most businesses are required to keep digital records from April 2026 anyway. Keep backups in at least two places.

Closed businesses and lost records

Closing your business does not end the obligation. HMRC's ability to investigate continues after trading stops, so the same periods apply — and for a dissolved limited company, the records should pass to the directors or shareholders before dissolution.

If records go missing, act rather than hope: ask suppliers, clients, and your bank for duplicates, and reconstruct what you can. HMRC accepts reconstructed records where the originals are genuinely lost, provided you can explain what happened and produce the best available evidence — though contemporaneous records always carry more weight in an investigation. Going forward, cloud accounting software and photographing receipts as you get them removes most of the risk.

One caution on the other side: business records containing personal data — about customers, staff, or suppliers — are covered by UK GDPR, so once a record is past its retention period and no longer needed for any legitimate purpose, you should delete it rather than keep it indefinitely.

Read the full guide: Business Record KeepingCovers eligibility, the process, deadlines, and next steps in depth.

Related guides

Self-Assessment Tax Returns

Self Assessment is the system HMRC uses to collect income tax and National Insurance from people whose income is not fully taxed at source through PAYE. If you are self-employed, a company director, a landlord, or have other untaxed income, you must file a personal tax return each year. The system has several features that catch first-time filers off guard — most notably the payments on account regime, which can make your first January tax demand significantly larger than expected. This guide explains exactly who must file, every relevant deadline, how payments on account work, and what penalties apply if you miss them.

7 min

Making Tax Digital

Making Tax Digital (MTD) is HMRC's programme to modernise the UK tax system by requiring businesses and individuals to keep digital records and submit tax information using compatible software. MTD for VAT is already mandatory for all VAT-registered businesses. MTD for Income Tax Self Assessment is being phased in from April 2026.

8 min

Employment Records for Small Businesses

Once you employ someone, you take on a range of record-keeping obligations. Proper employment records protect you in disputes, ensure you meet HMRC requirements, and demonstrate compliance with data protection law.

5 min