There is no single retention period that covers every business record in the UK. Your legal structure, tax obligations, record type and any ongoing enquiry can change how long information needs to remain available. A useful retention policy identifies the rule, its starting date and any reason to keep the record longer.
In this article
- Identify the record type
- Check its retention rule
- Keep accessible backups
- Review before deleting records
“Keep everything for six years” is therefore an incomplete instruction. It may miss a longer requirement, confuse the date from which the period runs or encourage unnecessary retention of information that needs a different policy.
Start with the records and obligations
List accounting documents, tax returns and calculations, payroll records, VAT records, contracts, asset documents and company administration records separately. Identify whether you operate as a sole trader, partnership or company and which registrations apply.
Use the following table as a starting point for the specified tax and accounting categories, not a complete legal policy for every document your business holds.
| Record category | HMRC baseline | Important qualification |
|---|---|---|
| Limited-company accounting records | Six years from the end of the last company financial year they relate to | Some situations require longer retention |
| Self-employed business records | At least five years after the relevant 31 January submission deadline | Special rule for very late returns |
| VAT records | At least six years | OSS and former MOSS records have a ten-year requirement |
| PAYE records | Three years from the end of the tax year they relate to | Minimum-wage and other employment records can require longer retention |
Sources: company accounting records, self-employed records, VAT records and PAYE records.
Where the same document supports more than one obligation, use the applicable longer period. The three-year PAYE baseline does not automatically permit deletion of an invoice or accounting schedule that must be retained for longer for another reason.
Calculate dates rather than labelling folders “old”
Illustrative example: a sole trader’s records relate to the 2024–25 tax year, with the relevant submission deadline of 31 January 2026. Applying the normal five-year rule means keeping those records until at least the end of January 2031. Filing early does not move the rule’s starting point to the early filing date.
For a company, calculate from the relevant financial-year end using the company rule, not from the date a receipt was scanned. Keep a schedule showing the period covered, baseline disposal date and any hold that prevents disposal.
This makes year-end archiving repeatable. Someone taking over the records can see the reasoning instead of guessing whether a folder named “2020” has reached its deletion date.
Identify reasons to retain longer
Company guidance specifies longer retention in situations including transactions covering more than one accounting period, assets expected to last more than six years, late returns and an HMRC compliance check. Apply those exceptions before deleting the underlying documents.
Asset records can remain useful throughout ownership and later disposal. Loan and contract documents may still explain live balances after their original purchase year. Disputes, claims, investigations and other legal obligations can also require a separate assessment.
Do not invent one universal period for employment, insurance, health and safety or customer records. Ask the appropriate adviser to identify the relevant requirement and purpose. Personal information needs a considered retention and access policy alongside the accounting schedule.
Make retained records genuinely retrievable
An unreadable backup is not a useful archive. Save documents in organised folders with consistent references and maintain access after software changes. Export supporting reports before closing a subscription or losing access to a supplier portal.
Test that a sample invoice, payment and related return can be traced from start to finish. Keep records of calculation methods where the result alone is insufficient. Protect access, maintain backups and agree who can authorise deletion.
For VAT, HMRC’s guidance also addresses digital recordkeeping requirements. A scan of a receipt and compliance with required digital records are related but different matters; check the setup rather than assuming that a PDF folder satisfies every obligation.
Review before disposal
Run an annual archive review with these questions:
- Which rule applies, and has its full period elapsed?
- Does another obligation require longer retention?
- Is there an enquiry, unresolved transaction or live dispute?
- Can the remaining archive still explain balances and returns?
- Who approved secure disposal, and where is that decision recorded?
EPOS bookkeeping services can be discussed around organising financial records and making year-end evidence accessible. A retention schedule should then be agreed against your actual business obligations, with exceptions recorded rather than left to memory.