Payslips

[miasmum]

Yesterday at work, I opened my payslip, checked it was correct and shredded it. They all looked at me with horror "you should keep them" they shouted. But why??? They all kept saying "you just should'. I used to keep them, I had 3 years worth cluttering up the drawers so now I just check and shred.

Should I keep them and if so why?

[Weka]

I think if you get an annual statement of income from you employer detailing income, overtime and tax, then there's no need to keep, but I'm not a local. Ring the tax dept or check their website. They are the only reason I can think of for keeping them. Otherwise it would be 7 years to retain them I believe.

[miasmum]

I keep my P60 Weka

[Kaz]

I gasped in horror when I read that Only because I have always kept mine for a couple of years, and Mick does the same......Not 100% sure why you have to keep them though, it might be ok for all I really know........

[meriad]

I'm same as you Shell and don't keep mine. I can get copies from payroll if needed and I have my P60.....

I did a major clear out over the past few days and have probably thrown away more than I should but nowadays you can generally get everything either online or hard copies sent.

[TheOstrich]

Kaz and Mick are being careful - and I'm with them on this.

In basic terms ....

You need to be able to keep (and produce) records to complete a tax return if you need to do one, or if the Inland Revenue want to check up on you. Tax law says that as an individual, you need to keep records for a minimum two years (call it three, effectively).

Now if you've worked for a firm for the whole tax year, most people think just keeping the End-of-Year P60 is fine. If you've changed employment during the year, then keeping the P45 from the old firm and the P60 from the new. In most cases, it probably is ......

But I would recommend you be slightly cautious and wait until you've got your P60 before you shred your payslips. Sometimes firms are dilatory in issuing P60s, depends on the efficiency of the payroll department.

And another reason for keeping payslips is - what happens if you get paid expenses along with your pay? Expenses can be paid tax-free - and don't figure on your P60. If you've destroyed your payslips, you've then lost the link between your P60 and what's going to be credited on your bank statements. Along comes the Inland Revenue and demands your bank statements .......

Of course it may "never happen to you" but the Inland Revenue can and do look at people's affairs and the rules regarding Child Benefits etc. are dragging more and more people into the "self-assessment / complete a tax return" net. Loads of adverts around at the moment advising higher earners to register by 05/10/13 or else; you've probably seen them.

So bottom line - "let's be careful out there" - keep all financial records for the allotted time, and don't start shredding until you're sure you're beyond it.

Further reading for individuals:
http://www.hmrc.gov.uk/sa/record-keeping.htm

Just my 2c worth as a retired number-cruncher ...

[miasmum]

Thats fine Ossie, but I don't pay tax, I don't claim child benefit, I am obviously from the fact I don't pay tax not a high earner, I work for a small company without a payroll department, my manager does our pay roll and I certainly don't get expenses, don't even get a bonus.

So I think I can safely carry on shredding