{"id":1370,"date":"2022-01-09T23:07:17","date_gmt":"2022-01-09T23:07:17","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=1370"},"modified":"2026-03-30T05:58:59","modified_gmt":"2026-03-30T04:58:59","slug":"business-records","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/corporations\/business-records\/","title":{"rendered":"What Records Do I Need to Keep After Closing My Business?"},"content":{"rendered":"\n

Business records are the documents and information your company must keep to track its operations, financial position and legal obligations. For your business, poor record-keeping<\/a> can lead to HMRC fines, failed audits and increased legal risk, particularly if you cannot evidence transactions, ownership or compliance when required. You must retain accurate records for prescribed periods, often at least six years, and ensure they are accessible for inspection or investigation.\u00a0 This article explains what business records you must keep, how long to retain them and the risks of non-compliance.<\/p>\n\n\n\n

General Overview<\/h2>\n\n\n\n

Her Majesty\u2019s Revenue and Customs<\/a> (HMRC) requires you to keep accurate records when operating your business, regardless of whether you are a sole trader or a limited company. While you can hire a professional (e.g., an accountant to help with your taxes), you remain responsible for maintaining accurate records. HMRC may conduct compliance checks to ensure you are paying the correct amount of tax.<\/p>\n\n\n\n

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As such, you should ensure that all information from each relevant tax year is kept in a secure file with your company records, allowing you to verify the amount of tax paid. These records include sales, purchases, expenses, cash books, mileage records, and bank statements.<\/p>\n<\/div>\n\n\n\n

However, keeping your documents can be space-consuming. Paper records, in particular, can be a significant issue for businesses with limited space. Keeping those documents after your business has closed down can be a hassle. As an alternative to paper records, you can store your records digitally. The only requirement in this regard is that the records have to be clearly legible.<\/p>\n\n\n\n

Therefore, we recommend that you scan all paper records to store them as digital records. You should also make sure they are filed and backed up to avoid the risk of losing records (and potentially having to pay a fine to HMRC). <\/p>\n\n\n\n

You will also be required to retain some of those records for a specified period if your business closes. If you fail to do so, HMRC can impose fines as a penalty. HMRC fines can be in the thousands of pounds, so it is essential to keep all relevant documents. The length of time you must keep your records depends on whether you are self-employed or run a limited company. <\/p>\n\n\n\n

What if I Am Self-Employed?<\/h2>\n\n\n\n

If you are self-employed, a sole trader<\/a>, or if your business is unincorporated, you are required to retain your records and documents for five years following the deadline for submitting your tax return for the relevant tax year. The tax return deadline is on 31 January. This means that if your business closes down in the 2016\/2017 tax year, you will need to keep your documents (which you submitted as part of your tax return on 31 January 2018) until 31 January 2023. <\/p>\n\n\n\n

The documents you must retain will include:<\/p>\n\n\n\n