UK Construction Records: 3 Years for CIS, 6 for VAT

A comprehensive guide for UK builders on statutory retention periods for CIS, VAT, and safety files to ensure compliance with HMRC and the Building Safety Act.

By James Shorter ·

UK Construction Records: 3 Years for CIS, 6 for VAT

Administrator filing construction project records

Keep CIS records for at least three years after the end of the tax year they relate to, and VAT and general accounting records for at least six years. Contracts, deeds and safety files can need far longer, because the Limitation Act 1980 and the Building Safety Act set the claim windows. HMRC, the HSE and the courts each want something different, so this guide shows what to capture and how to store it.

TL;DR:

  • Keep CIS records for three years after the tax year ends, VAT records for six years, and deed contract files for 12 years.
  • Some Building Safety Act claims can remain open for up to 15 years, so retain product and specification records until you confirm the applicable limit.
  • For CIS inspections, retain gross payments, deductions, rate verification, excluded material costs, and issued statements; missing records can trigger penalties up to £3,000.
  • The client must maintain the CDM safety file with residual risks, hazardous material details, maintenance information, key design decisions, and drawings showing the completed building.
  • Digital records meet HMRC requirements only when complete, unaltered, accessible, and stored in compatible software for VAT; export and archive timestamped site messages.
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Table of Contents

What records should you keep on every UK construction project?

Think of the project file as the evidence pack you would want if a client, an inspector or HMRC rang you in the future. Capture these as the job runs, not at handover:

  • Site diaries and daily reports: weather, labour on site, deliveries, instructions given and delays. Photos should show the date, the location on site and the work stage, so each image backs a diary entry.
  • Contract documents: signed contract, tender, scope, programme and any amendments.
  • Drawings and specifications: every issued revision, with the revision letter and date, so you can prove which version was built to. Our guide to drawing version control covers this in detail.
  • Financial paperwork: invoices, receipts, bank statements, valuations and VAT paperwork.
  • CIS records: subcontractor verification, gross payments, deductions and the Payment and Deduction Statements (PDS) you issue.
  • People and cover: payroll and PAYE records, insurance certificates and subcontractor RAMS.
  • Quality and handover: snagging lists, warranties, guarantees, completion certificates and operation and maintenance information. Our client sign-off checklist shows what a clean handover looks like.
  • RFIs, variations and decisions: the question, the answer, who approved it and when. An approval buried in a text thread is worth little unless you can find it.

If you handle product specifications, supplier data sheets belong in the file too. Material data, such as the kind in UK decking standards, proves what went into the build.

How long do you need to keep each type of record?

The answer depends on who might ask and why. Tax authorities, courts and safety regulators each run their own clocks.

CIS records. Contractors must keep records of gross payments to subcontractors, excluding VAT, and any deductions for at least three years after the end of the tax year they relate to. HMRC can charge penalties of up to £3,000 if you cannot produce them when asked.

VAT and general business records. These are normally kept for at least six years from the date of issue or the end of the accounting period. That period can run longer if a return is late, if HMRC opens a compliance check, or if the records relate to assets expected to last beyond six years. HMRC also explains when the six-year period starts for different document types, such as invoices and ledgers.

Contract claims. Under the Limitation Act 1980, a claim founded on a simple contract cannot be brought after six years. Where a contract is executed as a deed, the window is 12 years under the Limitation Act 1980. If your appointments or warranties are signed as deeds, your contract file needs to last that long.

Building Safety Act exposure. The Building Safety Act can extend the time limits for certain claims about construction products, in some cases up to 15 years. Check whether this applies before you delete product and specification records on a finished job.

When each clock starts. Tax records run from the end of the tax year or accounting period. Invoices run from their date. For contract and project files, we keep time running from the last entry on the job, which is the safest trigger when in doubt.

Retention periods and the clocks that start them

What will HMRC ask to see for CIS?

HMRC’s CIS guide for contractors sets out the contractor’s duties. You record payment details, make monthly returns and give each subcontractor a Payment and Deduction Statement. Expect an inspector to ask for:

  • Gross amounts paid to each subcontractor, excluding VAT
  • Deductions made and the verification behind the rate used
  • Materials cost where it was excluded from the deduction
  • Copies of the statements you issued

Keep all of it for the three-year minimum. The monthly return runs on a fixed monthly cycle, and the PDS must reach the subcontractor within the timescale in the guide. Build both into the same week every month so they never slip.

Retention differs by tax, which catches people out. CIS runs to three years, VAT to six, and PAYE has its own HMRC rules. Do not apply the shortest period across the board. A simple rule is to keep everything for six years unless you have confirmed a shorter period applies.

Missing documents bring penalties and, more often, a slow compliance check where you reconstruct a year from memory. Collecting subcontractor paperwork at onboarding prevents most of this, and our subcontractor onboarding checks show how.

What does CDM 2015 require in the health and safety file?

Under the Construction (Design and Management) Regulations 2015, project duties include preparing and maintaining health and safety information. HSE guidance for clients says the principal designer or contractor produces it at project end. The client then keeps it, updates it if circumstances change and makes it available to anyone who needs to alter or maintain the building. The wider duties for commercial clients sit alongside this.

The file should hold:

  • Residual risks that remain after construction, such as hidden services or fragile surfaces
  • Materials data, including anything hazardous
  • Operation and maintenance information for installed plant
  • Key design decisions and as-built drawings

Behind the file sits day-to-day paperwork. HSE administrative guidance expects systems that manage CDM files, risk assessments and method statements before work begins and keep them available during and after the project. Build the file as you go. A file assembled in a rush on the final Friday will have gaps, and the next contractor to open up a wall pays for them. Our CDM paperwork guide covers the three core documents.

How should you storerecords so they stand up to an inspection?

HMRC accepts digital archives when records are complete and unaltered. VAT Notice 700/21 says VAT records must be kept in functional compatible software, and that where digital copies replace originals they must be complete images. A folder of screenshots will not do. HMRC’s general record-keeping guide adds that the law does not prescribe how you keep records, only that they stay complete and accessible.

A simple structure works on every job:

  • Project ID first: use one code per job, such as Elm-Road, in every folder and file name.
  • Fixed top-level folders: Contract, Drawings, Finance, CIS, Health and Safety, Site Diary, Photos, Variations, Handover.
  • File names that sort: date, document type, revision, for example 2026-03-14_Drawing_A-102_RevC.
  • WhatsApp and site chat: treat messages as evidence only if they are exported or captured with their timestamp, tagged to a project and archived in the project record. A thread left on one phone is not an archive.
  • Photos and video: tag each to the project, the date and the area.
  • Backup and access: keep a second copy somewhere separate, restrict who can delete, and log who changed what. Worker and client details are personal data under UK GDPR, so limit access to those who need it.

An audit trail matters because it shows a record was not altered after the event.

Pro Tip: Use one project ID everywhere and upload the day’s diary and photos before you leave site, into a single searchable project record.

What can you fix this week?

Run this routine on every live job:

  1. Complete the site diary at the end of each working day.
  2. Upload and tag the day’s photos before leaving site.
  3. Save every Payment and Deduction Statement against the right subcontractor.
  4. Log each variation, with the approval attached, the day it is agreed.
  5. Check the backup ran and the latest drawing revision is the only one in circulation.

Three mistakes cause most of the damage. Lost WhatsApp messages: require key decisions to be uploaded to the project file. Unversioned drawings: keep one source and remove old issues. Missing statements: request them promptly and store them on receipt. Name one person per site who owns uploads, and cover them when they are off.

Builder perspective: keep it simple so it happens on site

In my experience, record keeping fails when it feels like homework. If capture takes too long at the end of a long day, it gets skipped, and the gap is exactly where the dispute starts. Make the diary part of the daily routine, use a short template, and give one named person the upload job. Habits beat software every time.

— James

How BRCKS gives UK teams audit-ready project records

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We built BRCKS so your team keeps messaging the way it already does, including through WhatsApp, while we build the site diary, log variations and RFIs with audit trails, and file photos and versioned drawings against the right project. We aim to save teams 30+ minutes a day. It costs £40 per seat per month billed annually, and subcontractors and clients are free. See our pricing and start your free trial.

This article is general information, not a substitute for advice from a qualified financial advisor. Consult a qualified financial professional about your own circumstances before acting on anything here.

FAQ

How long must construction records be kept in the UK?

It depends on the record. CIS records must be kept for at least three years after the end of the tax year, and VAT and general business records for at least six years. Deeds and some safety files need longer.

What is the 12-year limitation period in construction?

It is the Limitation Act 1980 time limit for claims founded on a contract executed as a deed, against six years for a simple contract. If your contracts or warranties are deeds, keep the related records for the longer period.

Is construction retention banned in the UK?

Retention money is not banned in general, and reforms have been discussed. Check your own contract terms and current government guidance, and keep payment and certification records either way, as they underpin any retention claim.

What happens if you cannot produce CIS records?

HMRC can charge penalties of up to £3,000, and a compliance check becomes much harder to resolve. Keep gross payments, deductions and statements for at least three years after the end of the tax year.

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How BRCKS Can Help

Managing these varying retention periods manually is a significant administrative burden that leaves your firm vulnerable to compliance risks. BRCKS simplifies this process by providing a centralised, secure digital archive that ensures your CIS and VAT records are organised and accessible for as long as the law requires. By automating your documentation workflows, BRCKS allows you to focus on delivery rather than paperwork. We invite you to explore our platform today to see how we can help you safeguard your business and streamline your project management. Learn more at BRCKS and explore our full feature set.


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