United Kingdom / Guides / How long UK companies keep records
United Kingdom · guideHow long UK companies keep records
The short answer
Under the Companies Act 2006, a private company must preserve its accounting records for 3 years from the date they were made, and a public company for 6 years. In practice, most companies keep records for 6 years from the end of the last financial year they relate to, because that is the period HMRC works to for Corporation Tax and the period records may be needed to support a return. VAT records must be kept for at least 6 years, and PAYE records for 3 years from the end of the tax year they relate to — three different rules, on three different clocks, that a single UK company can be subject to at once.
Key facts — verified dates on each
The statutory minimum is not the practical minimum
Section 388 of the Companies Act 2006 sets the legal floor for how long a company must preserve the accounting records it is required to keep under section 386: 3 years from the date a record was made for a private company, or 6 years for a public company. That is company law's answer, and it is genuinely shorter for a private company than the number most guidance quotes.
The number that actually governs most day-to-day retention decisions comes from HMRC, not Companies House. HMRC's guidance for limited companies states records should be kept for 6 years from the end of the last company financial year they relate to, because that is the window in which HMRC can open a compliance check or the company may need to support a Company Tax Return figure. A private company relying on the 3-year Companies Act minimum would be compliant with company law and still unable to answer an HMRC enquiry into the two years still open — which is why the 6-year HMRC figure, not the 3-year floor, functions as the working rule in practice.
Several circumstances push the HMRC period out further than 6 years: a transaction spanning more than one accounting period, an asset expected to last beyond 6 years, a Company Tax Return filed late, or an open HMRC compliance check. Any one of those extends how long the records touching that period need to be kept.
What counts as an "accounting record"
The Companies Act does not leave "accounting records" undefined. Section 386 requires records sufficient to show and explain the company's transactions, disclose its financial position with reasonable accuracy at any time, and let directors ensure any accounts prepared from them comply with the Act. For most companies that means day-to-day entries of money received and spent (and what it related to), a record of assets and liabilities, and — for a company dealing in goods — statements of stock held at each financial year end, the stocktakings behind them, and statements of goods bought and sold identifying the parties involved.
This is a broader net than "the annual accounts." It covers the working papers, invoices, receipts, bank records, and stock records that support those accounts — the underlying evidence HMRC or Companies House would ask to see if a figure were ever queried, not the filed accounts alone.
- Receipts and payments — day-to-day money in, money out, and what each related to
- Assets and liabilities as at each financial year end
- Stock statements and the stocktakings they are based on, for companies dealing in goods
- Statements of goods bought and sold (other than by retail), identifying the parties involved
VAT records run on a separate 6-year clock
A VAT-registered company keeps a distinct set of records for VAT purposes, and the retention period for them is set by HMRC independently of the Companies Act figure above — though it lands on the same headline number. VAT records must be kept for at least 6 years, and under Making Tax Digital that includes the digital record set itself, not just the summary figures submitted on each return.
Certain VAT positions — specific accounting schemes, or input tax recovery on higher-value capital assets tracked over a multi-year adjustment period — can mean related records need to stay available for longer than the standard 6 years. Where that applies, HMRC's guidance for the scheme in use sets out the exact period.
PAYE records: a shorter, separate clock again
A company that runs payroll has a third retention obligation, shorter than the other two and calculated on its own timeline: PAYE records must be kept for 3 years from the end of the tax year they relate to. That covers records of pay, tax and National Insurance deducted, statutory payments, taxable benefits and expenses, and the reports submitted to HMRC through Real Time Information — not just the payslips issued to employees.
A company that keeps records for the standard 6-year period automatically satisfies the 3-year PAYE minimum, which is why many businesses apply a single 6-year policy across accounting, VAT, and payroll records rather than tracking three separate expiry dates. HMRC can charge a penalty of up to £3,000 for inadequate PAYE records, separate from any penalty tied to the accuracy of a return itself.
Where records are kept, and what happens if they are not
Company law also has something to say about location, not just duration. Accounting records must be kept at the company's registered office or another place the directors choose, open to inspection by the company's officers at all times. If records are kept outside the UK, accounts and returns covering that business must also be sent to and kept at a place in the UK — a company cannot satisfy the Act by keeping its only accessible records offshore.
The Act does not require paper. Records can be kept in any form, including electronically, provided they can be reproduced in a legible form when needed — the same practical bar HMRC applies to VAT and PAYE records.
The consequence for not keeping adequate accounting records is direct: HMRC can fine a company up to £3,000, and a director can be disqualified for failing to keep proper accounting records, independent of any penalty tied to a specific tax return being wrong.
Managing three clocks instead of one
The practical difficulty with UK record retention is rarely any single rule — each of the three periods above is short and clearly stated. It is that one transaction can sit inside all three regimes at once: an invoice is a Companies Act accounting record, a VAT record if it carries input or output tax, and a PAYE-adjacent record if it relates to an employee expense claim, each nominally on a different clock. Applying the longest applicable period to the whole record set avoids under-retaining any one category by mistake.
CapEasy serves accounting and bookkeeping clients in the United States and Australia today. UK services, including UK record-keeping and filing support, are under consideration but not currently offered; this guide is provided for orientation only and is not a substitute for professional advice on a specific company's obligations.
The figures, and when we checked them
These numbers change by year or by notification. Each one shows the date we last verified it against the source — if that date looks old, check the source before relying on it.
Questions on this
How long does a UK company have to keep its accounting records?
The Companies Act 2006 sets a statutory minimum of 3 years for a private company and 6 years for a public company. In practice HMRC works to a 6-year period for Corporation Tax purposes, and most companies retain records to that longer figure.
Why do the Companies Act and HMRC give different numbers?
They are separate obligations. The Companies Act sets the company-law minimum under section 388. HMRC's 6-year figure reflects the period a Company Tax Return can still be checked or amended, so a company relying only on the 3-year minimum could be missing records HMRC could still ask for.
What actually counts as an accounting record under the Companies Act?
Records sufficient to show and explain the company's transactions and disclose its financial position with reasonable accuracy — day-to-day entries of money received and spent, a record of assets and liabilities, and, for companies dealing in goods, stock statements and records of goods bought and sold.
How long do VAT records need to be kept?
At least 6 years, including the digital records required under Making Tax Digital for VAT-registered businesses. Certain VAT accounting schemes or capital asset adjustment periods can extend that period — check HMRC guidance for the scheme in use.
How long do PAYE and payroll records need to be kept?
3 years from the end of the tax year they relate to — a shorter, separate clock from the Companies Act and VAT periods, though a company applying a single 6-year policy across all record types automatically clears the 3-year PAYE minimum.
Can UK company records be kept electronically instead of on paper?
Yes. The Companies Act does not require paper records, and HMRC accepts electronic VAT and PAYE records too, provided they can be reproduced in a legible form when needed.
Does keeping records outside the UK satisfy the Companies Act?
Only partly. If accounting records are kept outside the UK, the company must also send accounts and returns covering that business back to a place in the UK and keep them open to inspection there.
What happens if a company does not keep adequate records?
HMRC can fine the company up to £3,000 for inadequate accounting records, and a director can be disqualified. A separate £3,000 penalty applies for inadequate PAYE records, independent of any penalty tied to whether a return was accurate.
What extends the record-keeping period beyond the standard 6 years?
A transaction spanning more than one accounting period, an asset with a useful life beyond 6 years, a Company Tax Return filed late, or an HMRC compliance check still open — any of these can require the related records to be kept longer.
Does CapEasy provide UK record-keeping or bookkeeping services?
Not currently. CapEasy serves accounting and bookkeeping clients in the United States and Australia today. UK services are under consideration but not offered, and this guide is provided for orientation only.
Primary sources
- Companies Act 2006, section 388 — Where and for how long records to be kept
- GOV.UK — Running a limited company: company and accounting records
- GOV.UK — VAT record keeping
- GOV.UK — PAYE for employers: keeping records
Last reviewed 2026-08-14. Statutes and schedules change — the sources above are authoritative, this page is orientation.
This page is information, not an offer of services. CapEasy serves the US and Australia today; UK services are under consideration.