Companies House discusses wiping details of millions of companies

Companies House are considering removing details from the register for companies that have gone into liquidation or were dissolved more than 6 years ago.

Currently, records of all incorporated companies remain on the register for 20 years as this is also the time limit (subject to certain conditions) for application to reinstate a company.

The considerations are partly due to representations from directors and former directors who wish to move on from being associated with such companies which may have been liquidated through no fault of their own. The stigma of being attached to these companies may make it harder to obtain jobs in the future or impact new start-ups. Critics argue this could have a negative impact on money laundering and investigations into improper conduct/company management by directors.

We will wait to see whether Companies House pursue this any further.

This also serves as a timely reminder of what is required from HM Revenue & Custom’s (HMRC) perspective, which is separate from Companies House, when it comes to retaining company records…

Self-employed individuals and partnerships must keep their records for at least 5 years after the 31 January submission deadline. For example, if you have a financial year end of 31 March 2016, the tax return will be due by 31 January 2017 and therefore the records relating to this must be retained until at least 31 January 2022.

Limited companies must keep records about the company itself (such as director and shareholder details) and financial/accounting records for at least 6 years from the end of the last financial year they relate to. For example, if you have a financial year end of 31 March 2016, the records relating to this must be retained until at least 31 March 2022.

Please note that some records must be kept longer, such as those for transactions which cover more than one period, for assets like plant and machinery which are expected to last more than 6 years, if the Company Tax Return was filed late or if HMRC have already opened a compliance check into the Company Tax Return.

Also, be aware that HMRC can charge fines of up to £3,000 and disqualify directors if records are not kept in accordance with the law.

If you have any doubts about what you need to retain, please speak to your Client Manager before disposing of records.

Don’t have a Client Manager? Give us a call to speak with one of our experienced advisers, on 01474 853 856 and visit this page to see a full list of the compliance services we provide.