Payroll records to keep

How long to keep records

As an employer, you must keep payroll records for at least three years from the end of the tax year they relate to. Some related records (training, statutory absences) have different retention periods, so most employers keep everything for six years to be safe.

What to keep — per employee

• Their start date and (when applicable) leaving date
• Hours worked, gross pay, and pay date for every pay run
• Tax codes used and any tax code change notices
• Income tax, employee NI, and employer NI deducted
• Statutory payments (sick pay, maternity, paternity, adoption)
• Pension contributions (employer and employee)
• Student loan deductions and Postgraduate Loan deductions
• P45s received from prior employers

What to keep — for the employer overall

• FPS and EPS submission receipts
• HMRC PAYE notices and correspondence
• Payment records for PAYE due each month or quarter
• Year-end P60s issued (or copies thereof)
• P11D records for taxable benefits
• Auto-enrolment pension records

Digital is fine

HMRC accepts digital records. The payroll software you use likely stores everything you need automatically. Just make sure backups exist and the software's retention settings keep records long enough.

If HMRC asks to inspect

HMRC may visit or request records as part of an Employer Compliance Review. Make sure records are accessible and that whoever runs payroll can answer basic questions about what you've reported. The most common findings: missing records, inconsistent figures, or unsupported claims for Employment Allowance.