The most common errors in the data that employers hold are wrong birth dates, use of nicknames or shortened names.

Maureen Gordon, managing director at Compupaye, said: “We are ?nding that middle names often get overlooked, which is extra information the employer has to seek.”

Incorrect records can lead to incorrect taxation for employees and dif?culties in making bene?ts claims.

Simon Parsons, director of payments, bene?ts and compliance strategies at Ceridian, said: “For universal credits and tax credit claims to be handled quickly and ef?ciently, it is important the employer has the correct information so the Department for Work and Pensions and HM Revenue and Customs (HMRC) can match the claimant with the payroll RTI reporting.”

Employers should also note that, under the Data Protection Act, data must be checked with staff securely.

Karen Thomson, associate director of policy research and strategic visibility at the Chartered Institute of Payroll Professionals, said sending an email with the data the employer holds and asking the employee to check it would break data protection rules.

To prepare for RTI, employers must align the employee data they hold with that held by HMRC.