Term: Payroll records

How long to keep payroll records?

In the UK you’re required to keep payroll records for three years, even if the employee has left. This is to make sure your employees’ rights are protected.

If you do not keep full records, HMRC may estimate what you have to pay and charge you a penalty of up to £3,000.

You’ll need to keep records in paper or electronic form for:

  • salary or wages and time worked, including pay rate

  • the deductions you make

  • reports and payments you make to HM Revenue and Customs (HMRC)

  • employee leave and sickness absences

  • tax code notices

  • taxable expenses or benefits

  • Payroll Giving Scheme documents, including the agency contract and employee authorisation forms

   

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