Director information hub: Keeping records
It’s important that you keep up-to-date records of the income and expenditure connected with your company.
Help us to improve the director information hub by completing a short feedback survey.
Keeping records
Keeping records can help your company:
- pay the right amount of tax
- claim money back on tax
- file your tax returns properly
- provide evidence of income in case you want to apply for available funding
- know how much money is coming in and going out
- file annual accounts properly
- maintain the overall health of your company’s financial position
- spot the early signs of financial distress
You can be asked at any time to show them.
If you don’t keep records, you might not be able to question any disputes over money owed by your company or to your company.
It’s also a legal requirement to keep records - and what you keep and how long you keep them for can vary.
Make sure paper documents like invoices or receipts are stored safely and securely.
And always keep digital files backed up.
Penalties
The government can impose financial penalties and disqualify directors for failing to keep records or failing to present them to an office holder as part of a formal insolvency procedure.