It’s a question that comes up every year after tax returns are filed: Can I throw this away yet?
The short answer is – probably not yet. HMRC expects you to hold onto your records for several years after the tax year they relate to, and the exact timeframe depends on your business structure, the type of record, and whether anything unusual has happened (like a late filing or an HMRC enquiry).
Get it wrong, and you risk penalties of up to ÂŁ3,000 for failing to keep adequate records.
Here’s a clear breakdown of the rules.
The Quick Reference
Before we go into the detail, here’s the summary. The retention periods vary by record type and business structure:
- Self Assessment (not self-employed): 22 months after the end of the tax year
- Self-employed / partnerships: 5 years after the 31 January filing deadline
- Limited companies: 6 years from the end of the accounting period
- VAT records: 6 years (10 years if using the One Stop Shop scheme)
- PAYE records: 3 years after the end of the tax year
These are minimums. In several situations, you’ll need to keep records for longer – and in practice, many accountants recommend a blanket six-year rule just to keep things simple.
Sole Traders and Partnerships
If you’re self-employed or in a partnership, you must keep your business records for at least five years after the 31 January Self Assessment deadline for the relevant tax year.
To put that in concrete terms: your 2024/25 tax return was due by 31 January 2026. That means you need to keep all the supporting records for that year until at least 31 January 2031.
If you submit your return late – more than four years after the deadline – the rules change. In that case, you must keep your records for 15 months after you actually file the return.
What Counts as a Record?
Paper records, digital files, spreadsheets, and accounting software – all are acceptable, provided they’re accurate and accessible.
From April 2026, sole traders with qualifying income over ÂŁ50,000 are also subject to Making Tax Digital for Income Tax, which means digital record-keeping is now mandatory for that group.
The records you need to keep as a sole trader or partner include:
- All sales and income records: invoices, till receipts, bank statements, paying-in slips
- All purchase and expense records: receipts, invoices, credit card statements
- Records of personal income from other sources
- Details of any amounts paid into or taken out of the business
- VAT records (if registered)
- PAYE records (if you employ staff)
You don’t submit these records with your tax return. But HMRC can ask to see them at any time within the retention period, and if you can’t produce them, you could face a penalty.
Individuals (Not Self-Employed)
If you file a Self Assessment return but you’re not self-employed – perhaps you’re a higher earner, a landlord with rental income under ÂŁ2,500, or you have investment income to declare – the retention period is shorter.
You need to keep your records for at least 22 months after the end of the tax year they relate to. For the 2024/25 tax year (ending 5 April 2025), that means retaining records until at least 31 January 2027.
The types of records you should keep include P60s, P45s, bank and building society interest statements, dividend vouchers, records of capital gains, and any correspondence from HMRC about your tax affairs.
Limited Companies
Limited companies have the longest standard retention period. You must keep your accounting records for at least six years from the end of the last company financial year they relate to.
So if your company’s accounting period ends on 31 March 2026, all records for that year must be kept until at least 31 March 2032.
When You Need to Keep Records for Longer
There are several situations where the six-year minimum isn’t enough. You’ll need to hold onto records for longer if:
- They relate to a transaction that spans more than one accounting period
- They cover the purchase of an asset the company expects to keep for more than six years – in which case, records must be kept for six years after the asset is disposed of
- Your company tax return was filed late
- HMRC has opened a compliance check into your return – records must be kept until HMRC confirms the check is complete
On top of the accounting records, limited company directors also need to maintain statutory records for the lifetime of the company. These include the certificate of incorporation, articles of association, statutory registers (members, directors, persons with significant control), and board minutes.
What Limited Company Records Include
The accounting records you’re required to keep are broader than many directors realise. They cover:
- All money received and spent by the company, with supporting invoices and receipts
- Details of all assets and liabilities
- Records of stock held at the end of each financial year (if relevant)
- All goods purchased and sold, including details of buyers and sellers
- Bank statements and reconciliations
- Details of any loans, charges, or mortgages secured against company assets
Failure to keep adequate records can result in penalties from HMRC and, in serious cases, disqualification as a director.
VAT Records
If your business is VAT-registered, you must keep VAT records for at least six years. This applies regardless of whether you’re a sole trader, partnership, or limited company.
The records need to be detailed enough for HMRC to verify every figure on your VAT returns. That means keeping your VAT account, all sales and purchase invoices, import and export documents, and records of any adjustments or corrections.
If you deregister for VAT, you still need to keep the records for six years after deregistration.
Under Making Tax Digital for VAT, these records must be maintained digitally using compatible software. Spreadsheets linked to bridging software are technically acceptable, but most businesses find dedicated accounting software more practical.
PAYE Records
If you employ staff, you must keep PAYE records for at least three years after the end of the tax year they relate to. These records include:
- Payments to employees and details of deductions (tax, NIC, student loans)
- Tax code notices from HMRC
- Copies of all Real Time Information (RTI) submissions
- Details of statutory payments (sick pay, maternity pay, etc.)
- Records of taxable expenses and benefits provided to employees
Many employers choose to keep PAYE records for six years rather than three, to align with the retention period for other business records and to provide a buffer in case of disputes or HMRC enquiries.
How Long Can HMRC Look Back?
The retention periods above are the legal minimums for how long you must keep records. But it’s worth understanding how far back HMRC can actually investigate, because the two things aren’t always the same.
In most cases, HMRC can open an enquiry into a tax return within four years of the filing deadline. But if they suspect carelessness, that window extends to six years. And if there’s evidence of deliberate understatement or fraud, HMRC can go back up to 20 years.
This is one reason many accountants recommend keeping records for at least six years as a blanket rule, regardless of your business structure. If HMRC comes knocking in year five and you’ve already shredded everything, you’ll have a difficult time defending your position.
Practical Tips for Staying on Top of It
Record-keeping doesn’t have to be a burden if you build it into your routine. A few habits that make a real difference:
- Go digital early. Cloud accounting software like Xero, QuickBooks, or FreeAgent stores your records securely, makes retrieval easy, and keeps you MTD-compliant. It’s far less stressful than hunting through boxes of receipts at year end.
- Capture receipts as they happen. Most accounting apps now let you photograph receipts on your phone and attach them to transactions. Do it at the point of purchase and you’ll never lose a receipt again.
- Organise by tax year. Whether digital or physical, structure your records by tax year (or accounting period for limited companies). When it’s time to dispose of old records, you can remove an entire year’s folder rather than picking through individual documents.
- Set a diary reminder. Once a year, review what you’re holding and dispose of anything that’s passed its retention period. There’s no benefit to keeping records forever – and under GDPR, you shouldn’t hold personal data longer than necessary.
- Don’t throw anything away during an enquiry. If HMRC has opened a compliance check, keep everything until they formally confirm it’s closed, even if the normal retention period has passed.
How Double Point Can Help
Good record-keeping is the foundation of good bookkeeping – and good bookkeeping is what makes everything else easier, from filing accurate tax returns to responding confidently if HMRC asks questions.
At Double Point, we help our clients set up systems that capture the right information from day one, keep records organised throughout the year, and ensure nothing falls through the cracks.
Whether you need help with company accounts, Self Assessment, or getting your record-keeping MTD-ready, we’re here to take the pressure off.
Book a free consultation with us today and let’s make sure your records are in order.