Limited company record keeping requirements

Hello! I would be happy to help you with this. Running a limited company in England and Wales comes with some important administrative duties, and keeping the right records is a big part of that. It can feel like a lot to keep track of, but it is much easier once you know exactly what the law expects you to hold on to.

Broadly speaking, you need to keep records about the company itself and records about its finances.

Company details and statutory registers:
By law, your company must keep certain registers up to date. These are essentially formal lists detailing who is involved in the business. You need a register of directors, a register of directors' usual residential addresses, a register of members or shareholders, and a register of secretaries if you have chosen to appoint one. You also need a register of People with Significant Control, often called the PSC register, which shows who ultimately owns or controls the company.

Corporate records:
You also need to keep a paper trail of the important decisions the company makes. This includes minutes of all board meetings and general meetings of shareholders. You must also keep copies of any written resolutions passed by the shareholders, along with your certificate of incorporation and your articles of association.

Accounting and tax records:
HM Revenue and Customs and Companies House both require you to keep detailed financial records so that you can file accurate accounts and pay the right amount of tax. You must keep records of all money received and spent by the company, details of assets owned by the company, and details of debts the company owes or is owed.

If your company buys and sells goods, you also need to keep records of your stock, stock takings, and all the goods bought and sold, including who you bought them from and sold them to. Retail businesses do not need to record every individual retail customer they sell to.

To back up these financial records, you will need to keep the originals or digital copies of things like bank statements, receipts, petty cash books, orders and delivery notes, invoices, and relevant correspondence. If you employ staff, you must keep PAYE records, and if you are registered for VAT, you must keep all VAT-related invoices and returns.

How long you need to keep them:
The timeline depends on the type of record.

1. Financial and tax records must generally be kept for at least 6 years from the end of the financial year they relate to.
2. Minutes of meetings and copies of resolutions must be kept for at least 10 years from the date of the meeting or resolution.
3. Statutory registers, like your list of shareholders and directors, are permanent records and should be kept for the entire lifespan of the company.

Practical next steps:

1. Check your current filing system to make sure you are capturing all of these categories securely. You can keep these records in hard copy or digitally, as long as the digital copies are legible, secure, and easily accessible if Companies House or HMRC ask to see them.
2. Ensure your statutory registers are held at your registered office address or a Single Alternative Inspection Location, and that you have told Companies House where they are kept. Some companies now choose to keep this information directly on the public register at Companies House instead of keeping their own separate local registers.
3. If you are using accounting software, ensure your bank feeds are linked and you are uploading copies of your receipts so nothing goes missing.
4. Have a chat with your accountant if you are unsure whether your daily financial record-keeping meets HMRC standards, as they can usually set up a very simple bookkeeping routine for you to follow.

Please let me know if you need me to explain any of these requirements in more detail!