The UK Rules
'Follow the Regulations'
How to Keep Accounting Records

Accounting Records for Limited Company

There are legal requirements for company accounting and record keeping. This guide explains what records you need to keep for a limited company.

KEEPING RECORDS: Bookkeeping is part of running a limited company.

The records must show how you worked out the company financial accounts and the tax returns.

Record keeping and accounting for limited companies is particularly strict.

There are legal reporting requirements for HM Revenue and Customs and at Companies House.

You must also make some accounting records of your limited company available for public inspection.

The most important company and accounting records you must keep include:

What if you need to get help with tax issues and the company accounts? The best person to hire is a professional (such as an accountant).

HM Revenue and Customs often perform Income Tax compliance checks. One reason tax affairs get checked is to ensure the company pays the right amount.

Records You Must Keep about the Company

There are some specific records about a limited company that you must keep. Make sure you keep the appropriate details of:

Note: It is not uncommon to keep some accounting records at a place other than the registered office address. The rules of accounting allow this but you must file a change with Companies House.

Accounts and Record Keeping for Limited Company in the United KingdomPeople with Significant Control Register

The register of any 'people with significant control' is a part of record keeping for a limited company. The PSC register must include information and details of anyone who:

Note: You must keep a record even if there are no 'people with significant control' listed in the company register.

Accounting Records You Must Keep

All limited company accounting records must get kept that include:

There will be other information, financial records, and calculations that you must keep. It will include those needed to prepare and file annual accounts and a Company Tax Return, such as:

Note: Failing to keep valid and accurate accounting records can result in a fine of £3,000 issued by HMRC. You can also get disqualified as a company director in the worst cases.

How Long to Keep Accounting Records?

As a rule, you must keep the majority of records in a limited company for six (6) years. That means six years from the end of the last financial year that they relate to in the business. But, you will need to keep some records for longer if:

Lost or Stole Company Records (or destroyed)

Accounts and records for limited companies sometimes get lost or stolen. You must try to replace the records after they got destroyed, lost, or stolen. If this becomes impossible you must then:

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Accounts and Record Keeping for Limited Company in the United Kingdom