Keeping good business records for your limited company

As a Limited Company, it is important that you keep all records that are required by Companies House and HMRC. These accounting and reporting records may also be made available for public inspection, so it is crucial that yours are organised and up to date, by doing so, it will help you focus on the company data that can help you become more efficient and grow. It became easier since the birth of open banking and digital and cloud-based accounting software – it has really transformed the record-keeping environment for businesses.

Why do I need to keep my records?

Your Limited Company must keep records to ensure it meets the Companies Act Regulations with Companies House, and tax regulations with HMRC. It is beneficial to be organised and to keep your records in order as it keeps your business healthy. As a company director, you also could be disqualified from operating if you miss filing deadlines, become insolvent or are deemed “unfit to act”.

What records do I need to keep?

You should always try to keep records about your company operations, its finance, and accounting.

Under the Companies Act, you must keep any minutes of board meetings and resolutions, and your company’s registers will need to be held for the time the company is trading. On the company register, you should keep details of:

• Directors, shareholders and company secretaries

• The results of any shareholder votes and resolutions

• Debentures, which are promises for the company to repay loans at a specific date in the future, and to whom they must be repaid

• Promises the company makes for payments if something goes wrong and it’s the company’s fault, known as indemnities

• Transactions of any shares bought in the company

• Loans or mortgages secured against the company’s assets.

• You must tell Companies House if you keep the records somewhere other than the company’s registered office address.

• You must also keep a register of ‘people with significant control’. This includes details of anyone who has more than 25% shares or voting rights in your company, can appoint or remove a majority of directors or can influence or control your company or trust.

• If there are no people with significant control, you also need to record that.

How long should I keep my records?

It is important that your company’s registers are kept for the entire life of the company, and even after you cease trading, other time limits still apply:

• 6 years (accounting records) from the end of the financial year or accounting period to which they relate

• 10 years (meeting minutes and company resolutions) from the date of the meeting to which they relate

Where should I keep my records?

When you start your business, you must register your business with a company address, therefore, Companies House will assume all records and registers are held at a business registered office address. However, you may keep some records that might need to be inspected, at a Single Alternative Inspection Location (SAIL) address. If you do this, you must notify Companies House, and you must confirm which records are held there.

Companies House should be notified immediately if you move any records from your registered address. You will also have to confirm their location whenever you file an annual confirmation statement.

There is no avoiding that every single company must keep records. It is easy to keep them digitally these days, and cloud-based platforms have amazing benefits. If you choose to keep your records, you should make sure they are up to date and accurate. By doing so, it allows you to operate your business more efficiently, as you have the information to make the better decisions and plans.

If you need some guidance or advice, you can always get in touch with us here.