Payroll record keeping

Produced by Tolley in association with

Employment Tax

Guidance

Under SI 2003/2682, reg 97(1), “An employer must keep and preserve for not less than three years after the end of the tax year to which they relate all PAYE records which are not required to be sent to HMRC...”. Reasons for keeping the records include:

•
being able to calculate tax and NIC
•
ensuring compliance with legislation
•
proving that employees have been paid any statutory pay that they are entitled to

The GOV.UK website gives guidelines on the retention period for other payroll related records.

Records which must be kept include those relating to pay rates, tax and NIC deductions. Employers should also keep records of training, employment history and terms and conditions of employment.

Basic information needs to be kept in relation to employees. As a minimum, this should include:

•
name: surname and full forenames

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Vince Ashall

Payroll Consultant & Trainer at VA Payroll Services

Involved in payroll for more years than I care to remember! Initially in the NHS, where i oversaw the development of the NHS's bespoke payroll system (SPS Standard Payroll System), and latterly in the private sector. Served for 13 years as a MNT for a private sector defined benefit pension scheme. Have had articles published in payroll publications and and provide updates for various publishers. Fellow of the CIPP and gained a MSc in Payroll & Business Management in 2002. Now a self employed payroll and pensions consultant

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