PAYE record keeping: What happens if you don't keep or retain adequate records?

08 September 2010

Business Link provides a raft of information and advice to keep you free of business problems.

Although we are sure you keep up-to-date records, we thought you might like to be reminded of the penalties for not conforming especially when it comes to PAYE records.

“If your company or organisation does not keep adequate records for statutory payment purposes, or does not retain records for long enough, you may be charged a penalty of up to £3,000"

Keeping good records of all payroll aspects is to your advantage and ensures you pay the correct amounts of PAYE and NIC.  Failure to do this attracts a penalty of course.

Other staff records they advise you to keep for all members of your staff include:
• hours worked
• pay rates
• holidays
• accidents, injuries and dangerous occurrences
• accounting data
• crime prevention information
• pensions data
• mortgage or insurance administration

Business Link has guidelines for setting up these records if anyone needs them.