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PAYE YEAR END

Mental block I fear!!

Client owed employee wages re period 18th March 2012 to 7th April 2012

Because of cash flow problems employee not paid until mid April

Are the wages to be shown on P35 for year 2011/12 or for year 2012/13?

Many thanks

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When was the payslip dated?

As above

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2012/2013

It should be the date of payment but if the payslip is in the earlier tax year then submitting a P35 will involve a lot of messing about.

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It should be 2012-13 tax year!

Normally wages is accounted for based on when it is actually paid by employer/received by employee but in your case you have to be very careful not to miss out employees' personal allowance for 2011-12.  I would have treated the payment/income in the tax year 2012-13.

G

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CWG2

HMRC says

For PAYE purposes
If the employee is not a director, operate PAYE on the earlier of:
• when you actually make the payment
• when the employee is entitled to be paid, even if the pay is not drawn until later.

 

Employees are entitled to be paid on their normal pay day. So if they should have been paid before 5th April then you need to put that payment through in 2011/12. But if the normal pay day would have been 7th April (as implied) then it is a 2012/13 payment.

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This was discussed earlier

http://www.accountingweb.co.uk/anyanswers/question/payroll-procesing-date-when-paying-arrears

The answer Tom gave above appears to be definitive.

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Paye -P35-which year
Many thanks to all for their replies

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