---
title: "Company Bookkeeping Records: UK Requirements for 2026/27"
description: "**A UK company must keep enough accounting records to show and explain its transactions, disclose its financial position with reasonable accuracy and support compliant annual accounts and tax returns.** The records should create a clear trail from each transaction to…"
url: "https://www.accountingfirms.co.uk/knowledge-bank/what-records-must-a-company-keep-for-bookkeeping-purposes/"
updated: "2026-08-12"
category: Bookkeeping
---

# Company Bookkeeping Records: UK Requirements for 2026/27

**A UK company must keep enough accounting records to show and explain its transactions, disclose its financial position with reasonable accuracy and support compliant annual accounts and tax returns.** The records should create a clear trail from each transaction to the bank account, ledger, statutory accounts and relevant filing.

## Core records every company should keep

- **Sales and income:** invoices, credit notes, contracts, till or platform reports and evidence of other receipts.
- **Purchases and expenses:** supplier invoices, receipts, expense claims, credit notes and approval evidence.
- **Banking and finance:** bank and card statements, loan agreements, interest statements, leases and finance schedules.
- **Assets and liabilities:** asset invoices, disposal records, debtor and creditor ledgers, provisions and supporting calculations.
- **Stock:** year-end quantities, valuation basis and stocktaking records where relevant.
- **Payroll:** employee details, gross-to-net calculations, PAYE and National Insurance, pensions, statutory payments and RTI submissions.
- **VAT:** the VAT account, sales and purchase VAT data, submitted returns, scheme calculations and source evidence.
- **Equity:** share issues, dividends, director’s loan transactions and money introduced or withdrawn.

## What must the accounting system be able to show?

At any time, the company should be able to identify money received and spent and explain the purpose. Records should support a trial balance and reconciled balance sheet, not simply a folder of receipts. Regular bank reconciliation confirms that the ledger agrees with external statements.

## Documents needed for annual accounts

- complete nominal ledger and trial balance;
- bank, credit-card and loan reconciliations;
- aged debtor and creditor reports;
- stock count and valuation;
- fixed-asset register;
- payroll and VAT reconciliations;
- director’s loan and dividend records;
- details of accruals, prepayments, finance and commitments;
- prior-year accounts and current Companies House information.

Accurate records help prepare the profit and loss account, balance sheet, notes, Corporation Tax computation and Company Tax Return.

## How long must the company retain records?

Most company accounting records should be kept for at least six years from the end of the financial year they relate to. Keep them longer where a transaction spans multiple periods, an asset lasts longer, a return was late, HMRC has opened an enquiry or evidence supports a future claim.

Read our detailed [company accounting record retention guide](/knowledge-bank/how-long-should-a-company-retain-its-accounting-records/).

## Can records be electronic?

Yes. Digital records and scans are normally acceptable if complete, readable, secure and retrievable. Use reliable backups, access controls and an audit trail. Original deeds, certificates or other documents with independent legal importance may still need to be retained.

## VAT and Making Tax Digital

VAT-registered businesses within Making Tax Digital for VAT must maintain specified records digitally and submit through compatible software. Digital links should transfer required data between software products; manual copying is generally not a compliant digital link where the rules apply.

Companies are not currently brought into MTD for Income Tax merely because they are companies, but their Corporation Tax, VAT and company-law duties still require robust records.

## Director and related-party records

Record payments to or from directors separately. A director’s loan account should show money advanced, expenses paid personally, repayments, salary and dividends. Dividends require distributable profits and appropriate company documentation; a bank transfer labelled “dividend” is not sufficient on its own.

## Monthly bookkeeping checklist

1. Record all sales and purchases and attach evidence.
2. Reconcile bank, card, payment-platform and loan accounts.
3. Review overdue customers and supplier balances.
4. Post payroll and reconcile PAYE and pensions.
5. Review VAT coding and the VAT control account.
6. Check fixed assets, stock and director transactions.
7. Investigate suspense, negative balances and unusual movements.
8. Back up records and produce management reports.

## Who is responsible?

Directors remain legally responsible even when bookkeeping is outsourced. Define who records, reviews, submits and pays each obligation, and keep company-controlled access to the data. See [whether a company needs a bookkeeper](/knowledge-bank/is-it-mandatory-for-a-uk-company-to-have-a-bookkeeper/).

## Consequences of inadequate records

Poor records can cause inaccurate accounts, denied tax deductions, estimated HMRC assessments and penalties. Companies House says failure to keep accounting records can result in a £3,000 fine or director disqualification.

## Official guidance

- [GOV.UK: company and accounting records](https://www.gov.uk/running-a-limited-company/company-and-accounting-records)
- [HMRC: VAT record keeping](https://www.gov.uk/vat-record-keeping)

*This article is general information. The exact records depend on the company, sector and taxes involved.*