As a company director you may feel a lot of pressure on your shoulders when it comes to your responsibilities. One of these responsibilities is record keeping, but are you aware of what you should be keeping a record of in the eyes of the law?

In order to comply with the Companies Act 2006 there are certain documents which you must not destroy. If you do so there may be action taken against you such as fixed penalty fines or even imprisonment. So it’s of utmost importance you abide by the rules.

What documents should I keep?

The length of time in which you must keep company documents varies depending on the type of document. Here’s a guide to help you:

Indefinitely

• Fixed asset register
• Annual accounts

10 years following the date of the meeting

• Minutes taken during director and shareholder meetings

6 years

• Purchase invoices
• Sales invoices
• Petty cash records

6 years plus the current year

• Tax records for an employee who has left the business
• Changes in tax codes
• Payroll accounts

6 years after expiry or termination of contract

• Customer contracts
• Supplier contracts

3 years after the end of the tax year in which the period ends

• Maternity pay records
• Sick pay records

3 years after the end of the PAYE period following the year which the records cover

• National minimum wage records

3 years after lapse

• Insurance documents

2 years from the date they are produced

• Records relating to working time

1 year from termination of contract

• Director’s service contracts

6 months to a year

• Application forms, CV’s and interview notes

How do I keep these records?

Don’t worry you don’t need to rush out and get a self-storage unit to hoard all your paperwork! You can go paper free. You just need to make sure that all your important documents are backed up and aren’t just saved in one location.

I hope we’ve clarified what documents you should be keeping as a director. If you’re still unsure of anything we’re only a phone call away!