How long should you keep business records in the UK? A complete retention guide

Everyone knows they should keep business records. Almost nobody knows for how long. So records get thrown away too early, which creates risk, or kept forever, which creates clutter and, since the introduction of data protection law, its own risk. This guide gives you a clear retention schedule for the main types of UK business record, explains the reasoning behind the periods and shows how to dispose of records safely when the time comes.

Retention periods are minimums set by law or HMRC guidance. If you have a dispute, an enquiry or an open claim, keep records until it is resolved, whatever the period says.

The core rule for tax records

HMRC requires you to keep records that support your tax return, so that you can demonstrate your figures if asked. The standard periods are:

Self-employed and landlords. At least 5 years after the 31 January submission deadline for the tax year. For the 2025/26 tax year, the submission deadline is 31 January 2027, so the records must be kept until at least 31 January 2032. That is nearly six years from the end of the tax year.

Limited companies. At least 6 years from the end of the accounting period they relate to. For a year ending 31 March 2026, that means until at least 31 March 2032.

If you file your return late, the retention period runs from the actual filing date plus the normal period in some cases, so keep the records longer. If HMRC opens an enquiry, you must keep them until it is closed.

Retention schedule

Record	Minimum retention
Sales and purchase invoices, receipts	5 years after 31 January deadline (sole traders), 6 years (companies)
Bank statements and cashbooks	Same as above
Self Assessment working papers	5 years after the 31 January deadline
VAT records, invoices and returns	6 years
PAYE and payroll records	3 years after the end of the tax year
Payslips, P45s, P60s, P11Ds	3 years after the end of the tax year
Statutory sick and maternity pay records	3 years after the tax year
CIS records	At least 3 years after the end of the tax year, and 6 years for companies
Company accounting records	6 years from the end of the accounting period
Statutory registers, minute books	Indefinitely for the life of the company
Pension records	At least 6 years, longer for scheme records
Employment contracts	6 years after employment ends
Capital assets, property purchase documents	As long as you own the asset and for the standard period after disposal

Where two rules apply, follow the longer. For example, a payroll record might be retained for 3 years for tax but 6 years because of employment claims limits.

Records you should keep longer than the minimum

Some records have a value beyond tax compliance.

Assets and property. Purchase invoices, improvement costs and disposal records affect capital allowances and capital gains. Keep them for as long as you own the asset, plus the retention period after selling.

Contracts and agreements. Commercial contracts can give rise to claims many years later. In England and Wales, many contract claims have a limitation period of six years, and some, such as deeds, twelve.

Employee records. Records relating to health and safety incidents or exposures may need to be kept far longer.

Insurance policies. Keep copies of liability policies for as long as a claim could arise.

Company documents. Articles, share certificates, registers and resolutions are kept for the life of the company.

Digital records

HMRC accepts digital copies of records, provided they are clear, complete and unaltered. You can store the digital version instead of the paper original. Digital storage is better for searchability and backup. Under Making Tax Digital, digital record keeping is mandatory for VAT and, from April 2026, for many sole traders and landlords. Our guide to how to keep receipts for HMRC and business records for HMRC explain how.

If you use cloud accounting software, check how long your provider retains attached documents after you stop using the service, and export an archive before closing an account.

Data protection and records containing personal data

Records that contain personal data, such as employee files and customer details, are also subject to UK data protection law. The principle is that you should keep personal data no longer than necessary for the purpose it was collected. That does not conflict with tax retention periods, because keeping records for the legal minimum is itself a legitimate purpose. But it does mean you should not keep personal data indefinitely without a reason. A short retention policy that sets out how long you keep each type of record, and why, is good practice and makes disposal routine. Our privacy policy explains how we handle the data you give us.

Safe disposal

When the retention period has passed, dispose of records securely.

• Shred paper records containing personal or financial details.
• Delete digital files from all locations, including backups and shared drives, where practical.
• Record what you destroyed and when, using a simple log.
• Ask suppliers to delete data when you end a service.
• Keep what you need for any dispute or open enquiry.

A simple retention routine

1. Set up folders by tax year or accounting period, so that each year can be archived as a unit.
2. Record the disposal date on each archive, for example "destroy after 31 January 2033".
3. Review once a year, ideally after filing, to dispose of what has expired.
4. Back up what you keep to a second location.
5. Keep a copy of your policy where your accountant or bookkeeper can find it.

What if you have lost records?

If records are lost or destroyed, HMRC expects you to make a reasonable effort to reconstruct them from other sources, such as bank statements and supplier statements, and to tell them what happened. Do not guess. Our record rebuild service reconstructs missing periods properly. HMRC can charge a penalty of up to £3,000 for failing to keep adequate records for Self Assessment.

Setting up a one-page retention policy

A retention policy does not need to be long. Write a single page listing each type of record you hold, the minimum period, the reason and who is responsible for destroying it. For example, sales invoices: six years from the end of the accounting period, for tax; payroll: three years after the tax year, plus six years for employment claims; contracts: six years after they end. Date the policy, keep it with your accounting records and review it annually. If you are ever asked why you destroyed or kept something, a simple written policy shows that you acted deliberately and consistently, which is exactly what data protection law expects.

Frequently asked questions

How long should a sole trader keep records?

At least 5 years after the 31 January deadline for the tax year they relate to.

How long should a limited company keep accounting records?

At least 6 years from the end of the accounting period.

Can I throw away paper records after scanning them?

Yes, for most records, if the scan is clear and complete. Keep originals where the law requires them.

How long must I keep payroll records?

At least 3 years after the end of the tax year, though other rules may require longer.

Can you store and organise my records?

Yes. We keep digital records attached to your transactions. See our receipt and expense capture service or get an instant quote.