Common payroll terms
Company’s legal requirements.
Your records must show you have reported accurately, and you need to keep them for 3 years (most companies keep 6 years records) from the end of the tax year they relate to. HMRC may check your records to ensure you are paying the right amount of tax. There are different rules for keeping records to prove you have paid the correct minimum wage.
Data protection
You must follow rules on data protection if your business stores or uses personal information.
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.