Company and Accounting Records

Company and Accounting Records

This blog provides a brief overview of the company and accounting records that must be kept by a limited company is based on information obtained from the following HMRC website https://www.gov.uk/running-a-limited-company/company-and-accounting-records

You must keep:-

  • Records about the company itself
  • Financial and Accounting records

You must also keep details of:

  • directors, shareholders and company secretaries
  • the results of any shareholder votes and resolutions
  • promises for the company to repay loans at a specific date in the future (‘debentures’) and who they must be paid back to
  • promises the company makes for payments if something goes wrong and it’s the company’s fault (‘indemnities’)
  • transactions when someone buys shares in the company
  • loans or mortgages secured against the company’s assets

Register of PSCs

You must keep a Register of “People with Significant Control” (PSC). This must include details of anyone who:-

  • Has more than 25% shares of voting rights in the company
  • Can appoint or remove a majority of shareholders
  • Can influence or control your company or trust

You still need to keep a Register of “People with Significant Control” (PSC) even if there are no people with significant control.

Company and Accounting Records

You must keep accounting records that include:-

  • All money received and spent by the company
  • Details of all assets owned by the company
  • Debts the company owes or is owed
  • Stock the company owns at the end of the financial year
  • The stock takings you used to work out the stock figure
  • All goods bought and sold

You also need to keep any other financial records, information and calculations you need to prepare and file your annual accounts and company tax return.

You must keep accounting records that include all:-

  • money spent by the company (e.g. receipts and invoices, petty cash books, orders and delivery notes)
  • money received by the company (e.g. receipts and invoices, contracts, sales books and till rolls)
  • other relevant documents (e.g. bank statements and correspondence)

HM Revenue and Customs (HMRC) may also check your records to make sure that you are paying the right amount of tax. You can be fined £3,000 by HMRC or disqualified as a company director if you do not keep proper accounting records.

How Long to Keep Company and Accounting Records

You must keep records for 6 years from the end of the last financial year end that they relate to, or longer if:-

  • They show a transaction that covers more than one of the company’s accounting periods
  • The company has bought something that it expects to last more than 6 years (such as items of equipment or machinery)
  • You sent your company tax return to HMRC late
  • HMRC has started a compliance check into your company tax return

If your records are lost, stolen or destroyed

If you cannot replace your records after they were lost, stolen or destroyed, you must:-

  • Do your best to recreate them
  • Tell your corporation tax office straight away
  • Include this information in your corporation tax return

If you require further information on business and accounting records, please contact Stallion Accountancy Services.

About the author...

George Greer is an experienced ACCA qualified Business Owner with a demonstrated history of working in the accounting industry. He is skilled in Accounts and Finance Management, Budgeting and Business Planning with excellent knowledge of Sage and Xero Products. Strong professional with a BSc focused in Business Computing Systems from City University London.

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