How long must UK businesses keep financial records?

Financial records must be kept for 6 years from the end of the relevant financial year under the Taxes Management Act 1970 and Companies Act 2006. VAT records must also be retained for 6 years. After this period, records can be securely destroyed.

What are the most important document storage practices for UK businesses?

Key practices include: conducting a document audit, creating a retention schedule with specific UK legal requirements, indexing everything at box and file level, using standard archive boxes, separating active and inactive records, and planning for regular secure destruction with certificates.

Best Document Storage Practices for UK Businesses

Document storage is not just about finding somewhere to put boxes. Done properly, it protects you legally, reduces costs, keeps information accessible and ensures compliance with UK regulations. Done badly, it wastes money, creates risk and makes life harder when you need to find something. Here are the practices that separate well-managed archives from chaotic ones.

Start with a Document Audit

Before you store anything, you need to know what you have. A document audit is a systematic review of all the paper records in your organisation — what they are, where they are, who owns them, and what retention requirements apply. It sounds like a large task, but it does not need to be complicated.

Walk through every department and identify the types of documents being held: financial records, personnel files, client correspondence, contracts, regulatory submissions, project files. For each type, note approximately how much there is (in boxes or filing cabinets) and how often it is accessed.

This audit gives you the information you need to make good decisions about what to keep, what to destroy, and what to send for professional storage.

Create a Retention Schedule

A retention schedule defines how long each type of document must be kept before it can be destroyed. Without one, you either keep everything forever (expensive and creates GDPR liability) or destroy things too early (creating legal risk).

Key UK retention periods:

Financial records: 6 years from the end of the financial year (Taxes Management Act 1970, Companies Act 2006)
Personnel files: 6 years after employment ends (Limitation Act 1980)
Health and safety records: 3 years, or 40 years for records involving hazardous substances (COSHH Regulations)
Medical/health records: 8 years after last treatment, or until the patient reaches 25 if under 18 (NHS code of practice)
Contracts: 6 years after expiry (12 years for contracts executed as deeds)
Tax records (VAT): 6 years
Recruitment records (unsuccessful applicants): 6-12 months

Your storage provider should be able to manage retention dates on your behalf — flagging boxes that have reached their destruction date so you can authorise disposal.

Index Everything

The value of your archive depends on your ability to find things in it. Every box going into storage should be indexed — at minimum with a box-level description of contents, date range, department and destruction date. Better practice is file-level indexing, where individual folders within boxes are catalogued.

A well-indexed archive means you can locate a specific document quickly when needed — whether for an audit, a legal enquiry, or a client request. A poorly indexed archive means you are paying to store boxes that nobody can find anything in.

Use Standard Archive Boxes

Standard archive boxes (typically 15″ x 12″ x 10″) are designed to fit on commercial racking and to protect their contents. Avoid using random cardboard boxes, carrier bags, or filing cabinets. Standard boxes stack safely, transport easily, and cost only £2-£4 each.

Fill boxes fully but not overstuffed — a properly packed box should be firm but not bulging. Overfilled boxes damage contents and collapse when stacked. Underfilled boxes waste space and storage fees.

Separate Active and Inactive Records

Active records — documents you access regularly — belong in your office or in a storage arrangement that provides same-day retrieval. Inactive records — documents you must keep but rarely need — can go into standard archive storage at a lower cost.

Most businesses find that 80% of their paper records are inactive. Moving those to off-site storage immediately frees up expensive office space while keeping everything accessible when needed.

Plan for Destruction

Storage is not the end of the document lifecycle — destruction is. Records that have reached the end of their retention period should be reviewed and, if no longer needed, securely destroyed. A good practice is to review destruction lists quarterly or annually, so your archive does not grow indefinitely.

Certified destruction provides evidence that documents were destroyed securely and in accordance with your retention policy — essential for GDPR compliance and audit trails. Your storage provider should supply destruction certificates for every batch destroyed.

Review Annually

Your document storage needs change as your business evolves. New regulations may require longer retention. Departments close or restructure. Digital alternatives become viable for certain records. An annual review of your archive — what is in it, what can be destroyed, what might benefit from scanning — keeps your storage efficient and cost-effective.

Get a Free Quote

Every business is different, so the best way to understand your options is to get in touch with our team. We provide clear, no-obligation advice — usually within the same day.

Call us on 01691 650355 or use the form below.