Record keeping for limited companies
Records about the company
The following details should be kept:
directors, shareholders and company secretaries
the results of any shareholder votes and resolutions
details concerning loan repayments, dates, payee’s etc.
details of any payments to be made by the company if the company is at fault (‘indemnities’)
transactions in company shares
debts secured against the company’s assets
Companies House should be informed if you keep these records away from the company’s registered office address.
Register of ‘people with significant control’
A register of ‘people with significant control’ (PSC) must be kept and include details of individuals:
with more than 25% shares or voting rights in your company
that can appoint or remove a majority of directors
that can influence or control your company or trust
A record is still required if there are no people with significant control.
Accounting records
Accounting records include details of:
money received and spent by the company including any grants
company assets owned
company debts owed
stock/inventory held at the end of the financial year
stock-takes used to determine the stock figure
goods bought and sold
suppliers and customers (unless you run a retail business)
Other records supporting Annual Accounts and Corporation Tax Returns to be kept include:
money spent by the company (receipts, petty cash books, orders, delivery notes)
money received by the company (contracts, sales books, till rolls)
other relevant documents (bank statements, correspondence etc)
You can be fined £3,000 by HMRC or disqualified as a director if you do not keep accounting records.
How long to keep records
Records must be kept for 6 years from the end of the last company financial year 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, like equipment or machinery
you sent your Company Tax Return late
HMRC has started a compliance check into your Company Tax Return
More information about record keeping for limited companies can be found here.
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