Business Records

[bad company]

This should be a quick one.

I sold my business and retired in July 2012. Have I now reached the point where I can destroy all the company accounts, wage files and other records?

I’m not sure if it’s 6 or 7 years.

Thanks in advance.

[Mr Overheads]

If you sold the business, did the acquiring party not acquire the books and records too? i.e. it's their records to destroy not yours?

[bad company]

Mr Overheads said:

If you sold the business, did the acquiring party not acquire the books and records too? i.e. it's their records to destroy not yours?

Sorry, that wasn’t clear. I sold the database, intellectual property, ongoing contracts and equipment etc. All this and the staff were transferred to the purchasing company.

[StevieBee]

Law is 6 years from date of last financial year.

I'd suggest 7 to play safe.

And digitally copy key documents prior to destroying the paper ones.

[bad company]

StevieBee said:

Law is 6 years from date of last financial year.

I'd suggest 7 to play safe.

And digitally copy key documents prior to destroying the paper ones.

Thanks.

Why do I need 7 years ‘to play safe’? Surely if the revenue wanted the records I could legitimately say I don’t have them any more.

[PugwasHDJ80]

Op, when did you liquidate the ltd co post completion?

[bad company]

PugwasHDJ80 said:

Op, when did you liquidate the ltd co post completion?

It was an LLP but that would be the anniversary date I guess. I think it was December 2012 so I guess I need to go 6 years from then.

[RM]

This is one point I have never fully understood.

For a company that "exists", that is it is trading or dormant, then records should be kept for 6/7 years, this is clear enough.

For a company that had been struck off the company register, should records still be kept? It no longer legally exists. So if records should be kept, whose responsibility is it to keep them?

[StevieBee]

bad company said:

Why do I need 7 years ‘to play safe’?

Well, you don't really.

[Eric Mc]

bad company said:

StevieBee said:

Law is 6 years from date of last financial year.

I'd suggest 7 to play safe.

And digitally copy key documents prior to destroying the paper ones.

Thanks.

Why do I need 7 years ‘to play safe’? Surely if the revenue wanted the records I could legitimately say I don’t have them any more.

Six years from the statutory filing dates of the relevant financial accounts and tax returns. That can push the retention period to beyond eight years in some circumstances.

[bad company]

Eric Mc said:

Six years from the statutory filing dates of the relevant financial accounts and tax returns. That can push the retention period to beyond eight years in some circumstances.

Thanks, got it now. On checking I see that the LLP was dissolved in September 2013 so I reckon I’m looking at 6 years from then.

[Eric Mc]

As the cessation date was (say) 31 October 2013, that was in tax year 2013/14.

The statutory filing date for 2013/14 tax returns was 31 January 2015.

Add the six years retention period on to 31 January 2015 and you get a date of 31 January 2021.

I would use that date as the date from which you can start destroying original paperwork. HMRC advises that certain records be kept definitely - such as final accounts and bank statements. This is relatively easy these days as they can be stored electronically rather than in paper form.