Payroll records: what HMRC requires and for how long

HMRC requires employers to keep payroll records for 3 years from the end of the tax year they relate to. Other rules run longer: minimum wage, holiday and pension records must be kept for 6 years. If your records are incomplete, HMRC can estimate what you owe and charge a penalty of up to £3,000.

What payroll records does HMRC require?

HMRC requires records that show what you paid each employee, what you deducted and what you reported and paid to HMRC. GOV.UK’s PAYE record-keeping guidance lists:

• pay and deductions for each employee
• reports you send to HMRC, such as Full Payment Submissions
• payments you make to HMRC
• employee leave and sickness absences
• tax code notices
• taxable expenses and benefits
• Payroll Giving documents, including the agency contract and employee authorisation forms

The records must show your reports were accurate. HMRC may ask to see them during a compliance check.

How long must you keep payroll records?

You must keep PAYE payroll records for 3 years from the end of the tax year they relate to. Several other employment rules set longer periods, so the safe working figure for most payroll files is 6 years.

For example, the 2026/27 tax year ends on 5 April 2027. Its PAYE records must be kept until at least 5 April 2030.

What are the minimum wage record rules?

Minimum wage records must be kept for at least 6 years. HMRC’s National Minimum Wage Manual at NMWM12040 says records from 1 April 2021 must be kept for 6 years, starting from the day the following pay reference period ends.

The extension also covered records employers already had to keep before 1 April 2021. Keep hours worked, pay and any deductions or salary sacrifice for each worker, because HMRC enforces the minimum wage and you must prove you paid it.

What holiday records must employers keep?

Since 6 April 2026, employers must keep records adequate to show they have met workers’ annual leave rights, and keep them for 6 years. The duty comes from section 35 of the Employment Rights Act 2025, which inserted regulation 16B into the Working Time Regulations 1998.

In practice that means holiday taken, holiday carried over, holiday pay and any pay in lieu of untaken leave. You can keep the records in any format you reasonably think fit. Failing to keep them is a criminal offence under regulation 29. Our holiday pay calculator helps you check the figures you record.

What pension records must you keep?

Auto-enrolment records must be kept for 6 years, except opt-out notices, which must be kept for 4 years. The Pensions Regulator’s detailed guidance no. 9 lists:

• each member’s name, National Insurance number and date of birth
• qualifying earnings for each pay reference period
• contributions due and the date paid to the scheme
• automatic enrolment dates, opt-in and joining notices
• postponement notices and the date sent
• the scheme’s name, address and employer reference

Keep opt-in, joining and opt-out notices in their original format; electronic copies are acceptable. You stay legally responsible even if a payroll bureau holds them. See our guide to pension auto-enrolment.

What about statutory pay records?

Statutory Maternity Pay records must be kept for 3 years from the end of the tax year. GOV.UK’s SMP records page lists proof of pregnancy, the date SMP began, the payments and their dates, any SMP reclaimed, and weeks not paid with the reason. You can use form SMP2 or your own system. See Statutory Maternity Pay for the rates.

What if payroll records are lost?

Tell HMRC as soon as possible if records are lost, stolen or destroyed and you cannot replace them. Then:

1. Recreate the records as accurately as you can from bank statements, payslips and payroll software.
2. Ask HMRC for help if you are unsure what you paid employees.
3. Tell HMRC if your final payroll report for the year includes estimated or provisional figures.

What to do now

• Check how long your payroll software or bureau keeps data, especially if you plan to switch. Our payroll bureau vs software guide covers the trade-offs.
• Add holiday taken, carried over and paid to your records, if you are not already keeping them from 6 April 2026.
• Set a 6-year deletion date for most payroll files, and 4 years for opt-out notices.
• Store records in line with UK GDPR, with access limited to staff who need it.

Frequently asked questions

How long do I need to keep payroll records in the UK?

HMRC requires PAYE records for 3 years from the end of the tax year. Minimum wage, holiday and auto-enrolment records must be kept for 6 years.

What is the penalty for not keeping payroll records?

If you do not keep full records, HMRC may estimate what you owe and charge a penalty of up to £3,000.

Do I need to keep holiday records?

Yes. Since 6 April 2026, employers must keep records showing they have met annual leave rights, and retain them for 6 years from the date they were made.

Can I keep payroll records electronically?

Yes. HMRC accepts digital records, and the holiday rules let you use any format you reasonably think fit. Pension notices can be kept as electronic copies.

How long should I keep pension opt-out forms?

Keep opt-out notices for 4 years, in their original format. Other auto-enrolment records must be kept for 6 years.