As an employer, you must keep PAYE-related records for the current tax year and the previous three tax years. You can keep them either in paper or electronic format.
You need to keep these records so:
- HM Revenue & Customs (HMRC) can make sure you and your employees are paying the right amount of tax and NICs
- HMRC can make sure your employees are getting any statutory pay they’re entitled to
- HMRC can make sure you are complying with legislation on things like the national minimum wage
- You can file Employer Annual Returns – and provide evidence to support the entries made on it if HMRC asks for it
Filing PAYE paperwork
If you have 50 or m ore e mployees you must file certain PAYE paperwork online, including your Employer Annual Returns. If you have fewer than 50 employees, online filing is optional until 2011 – but from 2011, you must also file this PAYE paperwork online. To register to file paperwork online, go to the How to Register for PAYE online on the HM Revenue & Customs website.