It’s essential that you keep accurate and up to date records when you run a limited company, but do you know exactly what you need to keep in order to stay the right side of the law? Here’s our guide to the documents you’ll need to keep safe and up to date.
Where applicable, you need:
The limited company’s register of members (including shareholders and/or guarantors).
- An up to date register of company directors.
- Copies of all the directors’ service contracts.
- A register of Company Secretaries
- A register of People with Significant Control (PSC) – since 6th April 2016 all UK private limited companies have to keep a PSC register with information about the people who have ‘significant control or influence’ over the company. This is an individual (either a person or registrable legal entity) who meets one or more of the following conditions in relation to your company:
- Directly or indirectly holds more than 25% of the company’s issued share capital.
- Directly or indirectly holds more than 25% of the company’s voting rights.
- Directly or indirectly holds the right to appoint or remove a majority of board of directors.
- Has the right to exercise, or actually exercises, significant influence or control of the company
- Has the right to exercise, or actually exercises, significant influence or control over the activities of a trust or firm which is not a legal entity, but would itself satisfy any of the first four conditions if it were an individual.
- Records of resolutions and minutes of meetings.
- Directors’ indemnities – security against liability claims or legal costs.
- Copies of contracts that relate to purchases of company shares.
- Documents relating to redemption or purchase of own shares from capital by private company.
- A register of debenture holders.
- Instruments creating charges and register of charges – i.e. mortgages or secured loans.
You also need to make sure that you keep copies of a limited company’s certificate of incorporation, the memorandum and articles of association and any share certificates.
Accounting records should also be kept for the following:
- Any goods or services bought for or by the company
- All forms of income and expenditure
- All of the company’s assets, liabilities and creditrecords
- A full inventory of all stock and assets owned by the business at the end of each financial year
- The stock takings that have been used to work out the inventory figures
- Details of companies or individuals who goods and services have been bought from and sold to, with the exception of retail sales.
The businesses financial records and business bank account statements are used by accountants to calculate your annual accounts, your corporation tax liabilities, and to prepare Company Tax Returns for each accounting period.
If your business is VAT registered, you’ll also need to keep all of your business and VAT records do that you can accurately account for all VAT transactions, and complete VAT returns.
If you’re registered as employer you have extra responsibilities; you must also keep PAYE records so that you can work out the right amount of PAYE and NICs to pay, for your annual PAYE returns, and also to show that your employees are receiving any statutory pay they are entitled to.
How do you keep your limited company business records?
The best way to keep accounting and business records is in hard copy format in a bound or loose-leaf book, and/or electronically using accounting software.
Companies House assumes that all your business records are held at your company registered office address. You might also be able to use a Single Alternative Inspection Location (SAIL) address if this isn’t physically possible or convenient. If you do use a SAIL address, you must tell Companies House where, and which records are being held there. If you move the records, you’ll need to tell Companies House, and you also have to confirm their whereabouts every time you file an annual confirmation statement.
For more advice on business record keeping and other accounting needs, contact Emma Stevens at Emma Stevens Accountancy.
All data and information provided in this advert is for informational purposes only and is not intended to substitute for obtaining accounting, tax, or financial advice from a professional accountant. Emma Stevens Accountancy Ltd makes no representations as to accuracy, completeness, correctness, suitability, or validity of any information in this ad and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.