How Long Do I Need To Keep Business Documents - 2023 Back

How Long Do I Need To Keep Business Documents - 2023

As a business owner, keeping accurate and up-to-date records is crucial. Not only is it important for internal purposes, but it is also necessary for tax purposes. However, one question that many business owners have is how long they need to keep hold of their records for tax purposes.

The amount of time you need to keep records for tax purposes varies depending on the type of records you are keeping.

Generally, the rule of thumb is to keep records for at least six years. This includes records of all your income, expenses, and any other transactions related to your business.

There are some records that you need to keep for longer. For example, if you own property or assets that you are claiming capital allowances for, you will need to keep records of these for as long as you own the asset, plus six years after you have disposed of it.

If you have sold a business or any assets related to the business, you will need to keep records of the sale for at least six years.

In addition, if you are an employer, you will also need to keep records related to your employees for a certain period of time. This includes records of each employee's name, address, National Insurance number, and how much they have been paid. You will need to keep these records for at least three years after the end of the tax year they relate to.

Amount of time you need to keep business records

  1. Accounting records - Businesses must keep records of all money entering and leaving their business for at least six years.
  2. Tax records - Tax-related records, such as tax returns and calculations, must be kept for at least six years.
  3. Employee records - Records related to employees, such as payroll records, employment contracts, and training records, must be kept for at least three years after the end of employment.
  4. Health and safety records - Records related to health and safety, such as risk assessments, accident reports, and training records, must be kept for at least three years.
  5. Property and assets records - Records related to property and assets, such as purchase and sale documents, leases, and capital allowances claims, must be kept for as long as the asset is owned, plus six years after it has been disposed of.
  6. Corporate records - Records related to the business structure, such as articles of association and shareholder meeting minutes, must be kept for at least ten years.

Why do you need to keep them?

It is a legal requirement to keep accurate records for tax purposes. If you do not keep the necessary records, you could face penalties from HMRC. Additionally, keeping accurate records can help you to manage your finances effectively and ensure that you are paying the correct amount of tax.

However, keeping hold of your records for the required amount of time can be challenging. As your business grows, you may find that you have more paperwork to manage and limited space to store it. This is where secure storage offers you a solution.

Using our offsite secure depot for safeguarding important business documents has several benefits. Firstly, it can help to free up space in your office or premises, allowing you to use the space more efficiently.

Our secure premises can protect your documents for the future, as they will be stored in a secure, climate-controlled environment. This can help to protect your documents from damage due to fire, flooding or other disasters.

Our offsite secure depot can provide peace of mind, as you can be confident that your important documents are being stored safely and securely.

Another benefit of using secure storage is that we can provide easy access to your documents whenever needed. We offer a range of services, including document scanning and online document management, which can help you to access your documents quickly and easily.

What do I need to consider?

When choosing an offsite secure depot, it is important to consider a few factors. Firstly, you should ensure that the depot is secure and meets all necessary industry standards. This may include features such as 24/7 surveillance, climate-controlled environments, and fire suppression systems such as ours.

You should also consider the accessibility of your documents. Can you easily access your documents when you need them? We provide online document management, allowing you to access your documents from anywhere at any time. This works alongside our document scanning services, providing quick and easy access to your documents without retrieving them physically.

Get in Touch

Keeping accurate records for tax purposes is essential for any business. Understanding the amount of time you need to keep records is crucial, and using an offsite secure depot such as Secure Storage can provide added protection, peace of mind, and easy access to your important documents.

Please contact us today to learn more about how we can keep your business documents safe, document management and our integrated shredding service.