The Receipts You Genuinely Need to Keep (and for how long)
Many company directors I meet have one of two systems (and this has included me in the past!): a shoebox (or a carrier bag, or the glovebox) stuffed with every receipt since the company started, or no system at all and a vague hope it'll be fine. Neither is ideal. The good news is that the rules are simpler than they look. Once you know what counts and how long to hang on to it, you can keep what matters and stop worrying about the rest.
Why it matters more for a limited company
As a director, keeping proper accounting records is a legal duty, not just good practice. If a company doesn't keep them, HMRC can fine it up to £3,000, and in serious cases a director can be disqualified. There's also a practical cost. An expense you can't back up is an expense you may not be able to claim, and VAT you can't evidence is VAT you can't reclaim.
What actually counts as a "record"
It's wider than receipts. For a limited company, the records HMRC expects you to keep include:
Money going out: receipts, purchase invoices, petty cash records, orders and delivery notes
Money coming in: sales invoices and anything showing what you've sold
The bank side: business bank and card statements
The bigger picture: contracts, assets you own, debts you owe, stock, and relevant correspondence
The company side: details of shareholders, share transactions, and paperwork for dividends (dividend vouchers and the board minutes that approve them)
The magic number: 6 years from your year end
Company accounting records need to be kept for 6 years from the end of the last financial year they relate to. That's from the end of the financial year, not from the date on the receipt.
So if your company's year end is 31 March 2026, a receipt from anywhere in that year needs keeping until at least 31 March 2032.
Some records need keeping for longer, for example:
records that cover more than one accounting period
anything about an asset you expect to last more than 6 years (a van, a shopfit, kitchen equipment)
records relating to a return that was sent in late
anything HMRC is looking at in a compliance check
If in doubt, keep it.
VAT records: also 6 years, and partly digital
If you're VAT registered, VAT records generally need keeping for at least 6 years too. Under Making Tax Digital (HMRC's rules for keeping VAT records and filing VAT returns through software), your VAT records have to be kept digitally in compatible software such as Xero.
A handy detail: if you scan or photograph a receipt into your software and keep that image, and it shows all the details needed for VAT, you don't have to keep the paper original too. If you only type the numbers in and bin the receipt, you do.
Payroll records: 3 years (at least)
If you run payroll, even if it's just you as director, the records need keeping for 3 years from the end of the tax year they relate to. That covers what you paid, deductions, reports and payments to HMRC, sickness and leave. Many companies simply keep payroll for 6 years alongside everything else, so there's only one rule to remember.
Don't forget your own records as a director
Your personal Self Assessment is separate from the company. If you take dividends or a salary and file a personal tax return, HMRC expects you to keep those records for at least 22 months after the end of the tax year. It's longer, 5 years after the 31 January filing deadline, if you're also self-employed or rent out property. Keep your dividend vouchers and P60s somewhere you'll find them.
The habit that makes all of this painless
Snap it at the till. Card-machine receipts fade within months. Photograph them straight into Xero (or Apron or Hubdoc) and the problem disappears.
Ask for a proper VAT receipt. For small purchases (£250 or under, including VAT) a simplified VAT invoice is fine, but it still needs to show the supplier's VAT number.
One folder per year. Digital or paper, file by financial year, and it becomes obvious what's safe to clear out once the 6 years are up.
The takeaway
You don't need to keep everything forever. You need to keep the right things, readable, for the right length of time. For most limited companies that means 6 years from the year end, stored somewhere you can actually find it.
If your receipts are currently living in a shoebox and you'd like a system that just works, that's exactly what a monthly bookkeeping setup is for, so get in touch.
This is general guidance based on HMRC's rules at the time of writing. Your own circumstances may differ, so check with your bookkeeper or accountant if you're unsure.