Often, payslips are forgotten about and too quickly thrown away. It’s easy to simply glance at what you’ve earned over the last month or so, check your bank account to be sure the money has been paid, and never think of the slips again. But it’s vital that you should hang on to all of them. Why? In this blog we discuss the reasons why it is important to hold on to payslips.
Proof of Income
If you are planning on buying a house, or indeed even renting, you’ll need to provide payslips likely from the last three months to prove you can afford your mortgage rate or rent costs.
Payslips are also helpful when it comes to retirement as you’ll be able to see exactly what you should be receiving based on your pension contributions throughout the years.
If you are pregnant and preparing for maternity leave, your payslips will help you understand your maternity leave entitlement as well.
Proof of income is also essential when it comes to applying for any kind of visa to work in a different country.
Be In The Know
Keeping a hold of your payslips helps you to understand your pay which is vital if you are working under an umbrella company or if you are a permanent employee.
You payslips should lay out all your payments, including pension contributions, holiday pay, student loans, etc. making it easy for you to be in control of your money.
Having your payslips all to hand will help you to compile an accurate self-assessment tax return. You will be able to provide any necessary proof of pay/deductions if HMRC is ever to request one.
How Long Should I Keep My Payslips?
HMRC recommends keeping your payslips for 22 months, however we recommend filing your payslips and keeping them for as long as you can. This means that you can always refer back to your pay at any time should you need.
The Red Ark team are here to help you think through the best options for your business and put a plan to put in place for your business payroll needs.
Contact our friendly, knowledgeable staff today to discuss what we can do for you.