Record retention periods 2026: What can go now

Since 1 January 2026, tax records whose retention period has expired can be discarded. But emptying entire folders based solely on the label on the spine risks missing evidence and unnecessary trouble. A brief review saves time and provides certainty before paper goes into the recycling container or a file disappears permanently from the archive.

At a glance:

• Relevant for: Trade businesses of any size with paper or digital archives

• Reading time: 4 minutes

• Result: A ready-to-use checklist for disposing of tax records safely

Facts and analysis

The situation sounds simple: retention periods expire with the start of a new year. Certain tax records can therefore be discarded following the turn of the year. What matters, however, is not merely how old a folder or file appears to be.

Only records that have completed the applicable retention period may be discarded. The summary of the Deutsche Handwerks Zeitung article refers to a checklist for this purpose. It is designed to show at a glance which retention periods have expired.

For the business, this means starting with the type of document, not the filing cabinet. An invoice, an accounting record and a loose note may have different levels of importance. Without classifying them first, a spring clean quickly becomes a shot in the dark.

The same applies to digital records. A scanned document may be stored in the accounting system, duplicated in an email inbox and saved a third time in cloud storage. Reviewing paper alone may therefore move the clutter around instead of clearing it.

Retention and deletion are parts of the same documentation process. The article on the reverse-charge rule for construction services, for example, shows how important traceable records are for tax-sensitive transactions. The investment deduction allowance also depends on complete and correctly assigned information.

Before anything is discarded, a second question must therefore be answered: Is the matter truly closed? A formally expired retention period is of little help if the document is still needed for an ongoing clarification, audit or handover. If there is any doubt, keep it for now and flag it separately.

This article is based on the DHZ article “Record retention periods: What can be discarded in 2026”.

What does this mean for trade business owners?

In day-to-day trade work, documents are created in many places: in the office, in the van, while taking measurements and on a computer at home after work. A roofing business collects incoming invoices for materials, a plumbing, heating and air-conditioning business documents ongoing jobs, and a joinery files customer and supplier records.

The more storage locations there are, the more important a shared deletion decision becomes. This applies to a sole trader just as much as to a business with its own accounting department. The only difference is who reviews and approves the disposal.

In a small business, the owner can review the list together with their tax adviser. In a larger company, the office team can prepare the records and flag open cases. Final approval should still be assigned clearly.

It is also worth examining related transactions. Documents concerning business travel may be connected to the topic of using a private car for business and claiming travel expenses. Records relating to property work may still matter for the tax treatment of renovation costs. A folder name alone does not reveal these connections.

Recommended actions

Use this ready-to-use checklist before discarding records:

• Document type: What exactly is to be destroyed or deleted?

• Period: Which year or business transaction does the document relate to?

• Retention-period check: Has the applicable retention period actually expired?

• Open matter: Is the record still needed for an ongoing clarification?

• Storage locations: Are there paper records, scans or additional digital copies?

• Approval: Who reviewed and approved the disposal?

Use these six points as columns in a simple table. Do not delete anything until the retention-period check, review of open matters and approval have been documented. This turns a spring clean into a controlled close-out instead of a later search for missing records.

FAQ

Can all older tax records be discarded in 2026?

No. Only documents whose retention period has actually expired should be discarded. You must also check whether they are still connected to an open matter.

Should digital records also be reviewed?

Yes. The review should cover paper folders, accounting software, cloud storage and other storage locations. Otherwise, unnecessary copies may remain or important files may be deleted in isolation.

How can the review be organised within the business?

Record the document type, period, storage location, review status and approval in a shared list. Flag unclear cases and discard them only after a clear decision has been made.