Most UK business records need to be kept for six years. However, the exact answer depends on the type of record and the kind of business you run. HMRC and Companies House set the minimums, and getting it wrong can mean penalties if you are ever asked to produce paperwork you have already thrown away. The safe rule of thumb is simple. If in doubt, keep it, and keep it somewhere you can actually find it again.
Knowing how long to hold onto records is only half the job. The other half is having somewhere dry and secure to keep years of box files without them taking over the office. We set out the retention periods that apply to UK businesses. When you need to keep things for longer, and the practical side of storing an archive you are legally required to retain.
Retention periods vary by record type. Here is the quick answer for the most common categories, with the detail underneath.
| Record type | How long to keep it |
| Limited company records and accounts | 6 years from the end of the financial year |
| Self-employed and sole trader records | 5 years after the 31 January Self Assessment deadline |
| VAT records | 6 years (10 years under the One Stop Shop scheme) |
| PAYE and payroll records | 3 years from the end of the tax year |
These are minimums. Several situations, covered further down, mean you need to keep records for longer.
If you run a limited company, you must keep your company and accounting records for six years. That’s from the end of the last company financial year they relate to. That covers your accounts, records of income and expenditure, details of assets, debts the company owes or is owed, and anything that goes into your Company Tax Return.
In some cases you have to keep them longer. That applies if a record covers a transaction spanning more than one accounting period, if the company has bought something expected to last more than six years such as machinery or equipment, if you filed your Company Tax Return late, or if HMRC has opened a compliance check into your return.
Sole traders and partners who complete a Self Assessment tax return must keep their records for at least five years after the 31 January submission deadline for the relevant tax year. That includes records of your sales and income, business expenses, VAT if you are registered, PAYE if you employ people, and your personal income. If you send a return more than four years after the deadline, you need to keep the records for 15 months after you send it.
VAT-registered businesses must keep their VAT records and VAT account for at least six years. If you use the One Stop Shop scheme for sales to the EU, that extends to ten years.
Your VAT records include copies of all invoices you issue and receive, a VAT account, and any credit or debit notes. The obligation does not end when you deregister, so you still have to keep the records for the full period even after you stop being VAT registered.
If you employ people, you must keep your PAYE and payroll records for three years from the end of the tax year they relate to. That covers what you pay your employees, the deductions you make, employee leave and sickness, tax code notices, and any taxable expenses or benefits.
This one carries real teeth. If you do not keep adequate records, HMRC can estimate what you owe and charge a penalty of up to £3,000. If records are lost, stolen or destroyed, tell HMRC as soon as you can and do your best to recreate them.
The periods above are the baseline. You should keep records beyond them when any of these apply:
1. A transaction covers more than one accounting period.
2. You have bought an asset expected to last longer than the standard retention period, such as plant or machinery.
3. A tax return was filed late.
4. HMRC has started a compliance check and asked to see the relevant records.
Some records sit outside the tax rules entirely and have their own, often longer, timescales, including certain pension, insurance and health and safety records. When a record relates to more than one purpose, keep it for the longest period that applies.
Beyond the specific PAYE penalty, failing to keep adequate records makes life harder across the board. HMRC can estimate your liability if it cannot see the real figures, which rarely works in your favour, and you lose the paper trail you would need to defend a claim, settle a dispute or support an insurance matter. Keeping a tidy, complete archive is far cheaper than reconstructing one under pressure.
Once you add up company accounts, VAT files, payroll and everything else, a business builds a sizable archive fairly quickly. Old records you must keep but rarely open do not need to sit in a cupboard in a busy office taking up space you are paying for.
A storage unit is a practical home for an archive like this. It gives you a dry, secure space with surveillance cameras across the site, and access during opening hours whenever you need to pull a file for an audit or a query. At Incredible Bulk Storage in Bradford, local firms use a small unit to clear years of paperwork out of the workplace while keeping it safe and retrievable.
A few practical pointers: pack records in strong, uniform boxes so they stack safely, label every box on more than one side, and keep a master index at the office so you never have to open ten boxes to find one file.
Knowing how long to keep your records is the easy part – having somewhere sensible to store years of files is where a local storage unit earns its place. To find the right business storage unit size for your archive, get a quote or contact the Bradford team today.
If you any other questions, please feel free to call us or drop in for a chat.
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