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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:

1. •

   being able to calculate tax and NIC

2. •

   ensuring compliance with legislation

3. •

   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:

1. •

   name: surname and full forenames

2. •

   home address

3. •

   date of birth

4. •

   national insurance number (NINO, if known)

5. •

   gender, see below

With regards keeping records of gender, some employers are wary of collecting this for fear that