Company records are described as any statutory records that companies must keep as required by the Companies Act 2006. These records include but are not limited to the following: register, agreement, accounting records, minutes, memorandum.
Why do companies need to keep financial records?
Proper record-keeping is vital for companies as it ensures that the company is compliant. You need good records to prepare accurate financial statements, such as Account records, Tax records, Insurance records, and Personnel Records.
Why is record keeping important?
Keeping records is vital for your business. That can help you manage and monitor the growth of your business. It helps companies keep track of their expenses, debts, details of inventory bought and sold. Excellent record keeping can increase your business success.
What business records do I need to keep?
You must keep records of the company itself and well as accounting records.
These include but are not limited to the following:
Directors, Shareholders, Company Secretaries and PSC’s
Debentures and indemnities of the company
Mortgage and Loans
Annual Tax Records
How long do you need to keep company records?
You must keep records for six years from the end of the last company financial year they relate to, or longer if:
They show a transaction that covers more than one of the company’s accounting periods.
The company has bought something that it expects to last more than six years, like equipment or machinery.
Where should a company keep its accounting records?
It is best to store accounting records in a registered office. These documents include paid invoices, credit card receipts, receipts for cash transactions, bank statements, checks, and more.
How long do you have to keep payroll records in the UK?
Your records need to show you’ve reported correctly, and you need to hold them for three years from the end of the tax year they relate to. That is is because HMRC may inspect your records to make sure you’re paying the right amount of tax.
Do I need to keep paper records for HMRC?
There are no laws on how you must keep records. You can keep them on a document, digitally or as part of a software program. HMRC can charge you a fine if your records are not correct, complete, or readable.
Do I need to keep old payslips in the UK?
When it comes to tax-related paperwork like payslips, P45, HMRC recommends holding them for at least 22 months from the end of the tax year they relate to.
What records are kept after someone dies?
Hold copies of receipts for example: life insurance statements, credit card statements, bank and investment statements. Keep these for up to 3 years. Records of assets need to be kept until the assets are sold.
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