Keeping financial records will help you comply with HMRC requirements, manage your finances effectively, and make informed decisions about your business. Companies registered with Companies House are required to keep more records related to the governance of the company. 

It's important to note that companies are required to keep their records for a minimum of 6 years.

You must keep your records for at least 5 years after the 31 January submission. As a self-employed individual, it's important to keep accurate and up-to-date records of your business transactions and financial information. The specific records you need to keep will depend on the type of business you run and the taxes you need to pay, but here are some general guidelines:

1. Income records: Keep records of all your business income, including invoices, receipts, and bank statements, to ensure you accurately report your income to HM Revenue and Customs (HMRC).
   
   

2. Expense records: Keep records of all your business expenses, including receipts and invoices, to ensure you can claim any eligible expenses against your business income.
   
   

3. Bank statements: Keep records of all your business bank statements, including details of all transactions, to help you reconcile your accounts and monitor your cash flow.
   
   

4. VAT records: If you're registered for VAT, you'll need to keep records of all your VAT transactions, including VAT invoices, receipts, and VAT returns, to comply with HMRC requirements.
   
   

5. Employer records: If you employ any staff, you'll need to keep records of their salary and wages, tax, and National Insurance contributions, as well as any benefits in kind, to comply with HMRC requirements.
   
   

6. Contracts and agreements: Keep records of any contracts or agreements you have with suppliers, customers, or other business partners, to ensure you have a clear understanding of your obligations and responsibilities.
   
   

7. Business plans and strategies: Keep records of your business plans and strategies, including your business goals and objectives, to help you track your progress and make informed decisions.
   
   

8. Government grants: Your grants, if you claimed through the Self-Employment Income Support Scheme - check how much you were paid if you made a claim

Limited companies are required to keep certain records in order to comply with the law. The records that must be kept include:

1. Minutes of meetings: minutes of directors' and shareholders' meetings must be kept and contain decisions made and actions taken by the company.
   
   

2. Financial records: companies must keep records of their financial transactions, including invoices, receipts, bank statements, and records of sales and purchases.
   
   

3. Statutory books: companies must keep a register of members (shareholders), a register of directors and secretaries, and a register of charges (security over assets).
   
   

4. Payroll records: companies must keep records of employees' salaries, wages, tax and national insurance contributions, and details of any other benefits.
   
   

5. Corporation tax records: companies must keep records of their corporation tax affairs, including details of tax paid and outstanding.
   
   

6. VAT records: if a company is VAT-registered, it must keep records of VAT charged and VAT paid on purchases.
   
   

7. Company accounts: companies must prepare annual accounts that show the financial performance of the business, including a profit and loss account, a balance sheet, and cash flow statement.

It is important for businesses to keep accurate and up-to-date records and to provide them to HMRC when required. This will help to avoid fines, penalties, and other negative consequences. In case of an inspection by HM Revenue & Customs (HMRC) or Companies House, companies must be able to provide all relevant records. Failure to keep the necessary records can result in fines and legal action.If a business is unable to produce the required records it could result in serious consequences. 

The following are some of the potential consequences:

1. Fines and penalties: If a business is unable to provide records, HMRC may impose fines and penalties. The amount of the fine will depend on the nature and extent of the breach, but it can be substantial.

2. Tax assessments: If a business is unable to provide records, HMRC may estimate its tax liability based on the information it has available. This estimate may be higher than the actual liability, and the business will be required to pay the assessed amount, plus interest and penalties.

3. Criminal investigation: In some cases, failure to keep records or to provide records to HMRC may result in a criminal investigation. This could lead to a criminal prosecution and, if found guilty, a prison sentence.

4. Disqualification from acting as a director: If a director is found to have deliberately failed to keep records, they may be disqualified from acting as a director for a period of time.

5. Reputation damage: The failure to keep records or provide them to HMRC can damage a business's reputation and make it difficult to do business in the future.