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Financial Year-End Document Disposal

Every year, businesses generate a substantial volume of documents. These might include contracts, invoices, financial and legal records, personnel files, or operational plans. While maintaining thorough documentation is essential for compliance and reference, regularly sorting through and disposing of outdated documents is equally crucial. Let’s start by exploring why this process is a vital business practice, the benefits it offers and the challenges that can arise if neglected.


What Records Must Be Kept & For How Long?

In the UK, various types of records and documents must be retained for statutory minimum periods to comply with legal and regulatory requirements. The required retention period often depends on the type of document and the nature of the organisation (private or public company).

Accounting & Tax Records

The Companies Act 2006 stipulates that public companies must retain all accounting and tax records for a minimum of six years from the end of the financial year.

For private companies and limited liability partnerships (LLPs), this period is reduced to three years for accounting records, but as HMRC requires private companies to retain all tax-related records for a maximum of six years this longer period is effectively standardised across all businesses.

Partnerships and sole traders must keep accounting and tax records for a minimum of five years after the 31 January submission deadline for the relevant tax year although again, VAT and self-assessment records must be retained for six years.

Employee Records

Companies must retain all payroll and wage records for a minimum of six years, although records relating to statutory maternity, paternity and adoption pay only need to be kept for three years.

Under the Pensions Act 2004, records relating to employee pensions must be kept for six years following the termination of the pension scheme.

As claims can potentially be made under the Limitation Act 1980, personnel files must be held for six years following the termination of employment.

Health & Safety Records

The Health and Safety at Work etc. Act 1974 places obligations on companies to retain relevant records:

  • Accident books and records must be retained for a minimum of three years following the last entry, although this period may need to be extended if an employee makes a claim.
  • Risk assessments should also be archived for the same three-year period, or longer if they relate to ongoing work.
  • COSHH (Control of Substances Hazardous to Health) and asbestos-related records must be archived for at least forty years.

Contracts and Legal Agreements

The Limitation Act 1980 requires that contracts and legal agreements are stored for six years following the end of a contract (and for twelve years in the case of a contract executed as a deed).

Insurance Records

The Employers’ Liability (Compulsory Insurance) Regulations 1998 demands that all insurance records be kept for six years. Some records – such as those for employer’s liability insurance – may need to be kept for forty years.

Records That Must Be Kept Indefinitely

Some documents must be retained indefinitely, including:

  • Board meeting minutes and company registers (Companies Act 2006)
  • Property records must be kept indefinitely while owned and for twelve years following disposal (Limitation Act 1980 and related property laws).


The Benefits of Regular Document Disposal

An annual clear-out of documents brings several key benefits, including:

Less Clutter for Greater Efficiency

Outdated documents clog up filing cabinets and digital storage, making it harder to locate current, relevant information. This can slow down operations, frustrate employees and waste time. A well-maintained filing system, free from irrelevant documents, streamlines workflows and boosts productivity.

While digitising all records may seem a more effective alternative, bear in mind that manually scanning and digitising documents can be time-consuming. Cluttered servers and drives will also slow down system performance, increase IT costs and potentially expose security vulnerabilities.

Mitigated Security Risks

Old documents – especially those containing sensitive information – can pose a significant security risk. Storing outdated financial records, employee data or customer information increases the chance of data breaches or identity theft. Regularly disposing of these documents through secure shredding or digital deletion reduces exposure and demonstrates a commitment to safeguarding sensitive information.

Lower Storage Fees

For physical documents, storage space can be costly if renting off-site facilities or dedicating office space to archives accumulates. Retaining only necessary records ensures your storage space is used efficiently, cutting costs in the long term. Similarly, reducing digital clutter can save on cloud storage expenses.

Why You Should Use A Professional Disposal Service

Most companies today are GDPR-savvy enough to not throw sensitive data into the regular rubbish, but may still be taking a risk in how they dispose of documents. Not all office shredding machines are fully GDPR-compliant (it’s all in how finely they shred the paper), but even if they are, office practices may be exposing them to potential data breaches.

For example, not storing sensitive documents in a locked room or cupboard with restricted access increases the risk of unauthorised personnel gaining access to the data.

Leaving sensitive documents on a desk or next to the shredding machine during the disposal process is an open invitation to opportunists. Even stacking boxes of discarded documents for collection by a shredding service is unsafe.

When it comes to secure document disposal, Avena’s SECURALL shredding services offer the perfect blend of simplicity and security. Here’s why businesses across sectors from banks to accountants trust us:

Compliance Assured

Our shredding process ensures adherence to GDPR and other legal requirements, so you can tick that compliance box with confidence.

Eco-Friendly Disposal

Once shredded, all paper is recycled, helping you meet your sustainability goals. Recycling one tonne of paper saves approximately 17 trees and reduces landfill waste—a win for the environment.

Tailored Services

Whether you need a one-off clear-out or regularly scheduled collections, we’ve got you covered.

Certified Processes

After each shredding session, you’ll receive a Certificate of Destruction, providing undeniable proof of secure disposal.

With SECURALL, there’s no need to worry about shredding documents manually or carting them to a recycling centre. We take care of everything, leaving you to focus on what you do best. Our team adheres to stringent protocols, ensuring that your documents are handled securely from collection to destruction.

 

Interesting in learning more about our services? Speak to one of our experts today.

Looking for a quick quote for secure destruction & recycling? Get a quote today.

 

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