Why statutory records matter more than you might think

Running a small business means juggling a lot of plates, and paperwork is rarely the plate anyone wants to think about. Yet the records you keep — and how you keep them — are a legal duty, not an optional extra. Under the Companies Act 2006, every limited company must maintain certain registers, minute books and accounting records, and must make some of them available for inspection.

Several parties can ask to see your records: Companies House, HMRC, your shareholders, and in some circumstances creditors or an insolvency practitioner. Mishandling them can lead to fines, a criminal record for the directors, or a nasty surprise during a tax enquiry. The good news is that once the system is set up properly, maintenance takes minutes each month.

The statutory registers your company must keep

These are the core registers that must exist from the day of incorporation and be updated whenever something changes:

• Register of members — who owns the shares, how many, and when they were issued or transferred.
• Register of directors — names, service addresses, appointment and resignation dates.
• Register of directors' residential addresses — kept separately, not open to public inspection.
• Register of secretaries — only if you have appointed a company secretary.
• Register of people with significant control (PSC) — anyone holding more than 25% of shares or voting rights, or otherwise exercising significant influence.
• Register of charges — any mortgages or charges over company assets.
• Register of debenture holders — if you have issued debentures.

You should also keep minutes of directors' meetings and general meetings, plus copies of directors' service contracts and indemnities, which members have a right to inspect.

Accounting records and annual accounts

Accounting records must show all money received and spent, assets and liabilities, and the financial position of the company at any given time. In practice that means bank statements, sales and purchase invoices, receipts, payroll records, and the underlying ledgers.

A private company must keep accounting records for three years from the end of the financial year they relate to under company law, but HMRC expects six years from the end of the accounting period for tax purposes. Six years is the practical minimum, and many accountants suggest seven to cover enquiries that run close to the deadline.

Annual accounts must be filed at Companies House within nine months of your accounting reference date — 21 months from incorporation for a first set. Depending on your size, you may file micro-entity, small company or abridged accounts. Late filing penalties start at £150 and rise to £1,500 for accounts more than six months overdue, doubling if you are late two years running.

Confirmation statements and event-driven filings

The confirmation statement replaced the annual return in 2016. You must file one at least every 12 months, within 14 days of the end of your review period. It confirms that the information Companies House holds about your company is correct — it is not a snapshot of changes, so you still need to report changes separately.

• Changes to directors, secretaries or PSC details: notify within 14 days of the change, and file within a further 14 days.
• Allotments of shares, transfers of shares, or changes to the registered office or SAIL address: report as they happen.
• Changes to your accounting reference date: file form AA01 before the deadline you are trying to move.

Miss the confirmation statement deadline and Companies House can strike your company off the register — a costly way to learn the importance of a calendar reminder.

Where to keep records and who can see them

Statutory registers must be kept at your registered office or at a Single Alternative Inspection Location (SAIL). If you use a SAIL, you must tell Companies House its address. Members may inspect registers free of charge; other people may inspect the register of members and the register of directors on payment of the prescribed fee. You should comply promptly — for the register of members, within five working days of a valid request.

Records can be held electronically, provided a hard copy can be produced on request. If you are ever asked for a physical copy, you cannot use "it's only on the laptop that died" as an excuse.

Practical storage that stands up to scrutiny

A simple, disciplined approach works best:

• Use a structured digital folder with subfolders for accounts, VAT, payroll, statutory registers and correspondence, named by year.
• Back up off-site — cloud storage with version history, or an encrypted drive kept somewhere else entirely.
• Restrict access to those who need it, and keep a note of who can edit or delete.
• Set a retention schedule so nothing is destroyed too early — remember registers must be kept for the life of the company, and general meeting minutes for at least ten years.
• Treat personal data carefully under UK GDPR, particularly residential addresses and shareholder details.

Ten minutes a month spent filing and updating will save you far more than that when an inspector, accountant or buyer asks for the paperwork. The records are the memory of your business — keep them tidy and they will look after you.