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Record keeping

It is a legal requirement that you keep certain records of your employees and
their pay for the current and previous three tax years.

This means that if we are in the tax year 2018/19,
you have to keep your records safe for 2018/19,
2017/18, 2016/17 and 2015/16.

If you use payroll software, most of the details that you
need to keep will be stored electronically as part of the
program (however it would be wise to make backups –
e.g. regularly copy and save the data to a separate
location in case of a problem with the payroll software).

If you are not using payroll software and are doing things manually, you will need
to work out a system of recording and filing the relevant details.

The main employee records you have to keep include:
• Basic information about your employee(s) such as name, address, date of
birth and National Insurance number

• Evidence of the employee’s right to work in the UK

• Whether an employee is paid weekly, fortnightly, 4-weekly, or monthly
• The rate of pay and hours worked

• Dates of starting and leaving

• Tax code

• National Insurance category letter

• Details of any absences for sickness, maternity/paternity leave or any other
reason
• Details of any benefits in kind provided e.g. accommodation, car, fuel

• Details relating to student loan deductions

There is lots of information about your record keeping obligations in the ‘Paying
wages’ section of our website:

www.disabilitytaxguide.org.uk
and on the GOV.UK website:

www.gov.uk/paye-for-employers/keeping-records

page 30 Taking on a personal assistant – a basic guide • Paying wages