People often receive payslips only to quickly throw them away or forget about them. It can feel all too easy to toss them aside after you’ve checked your payment is correct, but it’s essential that you hold on to them. If you’re wondering why it’s important to keep a hold of your payslips, keep reading and let us help you understand.
Take control of your finances.
Holding on to your payslips helps you to understand your pay which is essential if you are either a permanent employee or working under an umbrella company.
Your payslips detail very important information like pension contributions, tax, and more. Keeping a hold of your payslips and filing them appropriately will help keep you informed while also giving you control of your finances.
You need to have all your payslips to hand in order to file a self-assessment tax-return with accuracy. And if HMRC ever enquires about proof of pay or deductions, then you’ll have everything you need at hand – even if the information you require was six months ago.
Proof of Income
You’ll need to provide payslips from the last three months as a proof of income If you are planning on buying a house, or indeed even renting. This is needed to show that you can afford your rent or mortgage payments.
Your payslips will help you to discern your maternity leave entitlement as well, if you are pregnant or preparing for maternity leave.
Payslips will also help you to understand exactly what you should be receiving for your retirement based on your pension contributions over the years.
You’ll also need proof of income in order to obtain a visa for working abroad.
How Long Should I Keep My Payslips?
HMRC recommends holding on to your payslips for 22 months (2 years), but we suggest filing your payslips and keeping them for as long as possible. This means that you can always look back to your pay at any time should you need.
Need more information? The Azure team are here and happy to help you in thinking through the ideal options for your business and putting a plan in place for your business payroll needs.
Contact our friendly, knowledgeable staff today to discuss what we can do for you.