Hiya,
Just quick question on PAYE NI etc,
When does the tax point occur? is it date of payment or on date of work.
I. my client has employees that worked week 52 (Sat 29th to Friday 4th) but paid on 9th of April.
My brain tells me that this is Week 52 Pay, and part of Tax Year 13-14, but im not 100% sure on it.
thanks
Replies (3)
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Date of Payment
It's the date of payment.
If it wasn't, where would you draw the line ? Every week ? Every day ? Every hour ?
Incidentally, "tax point" is a term used in VAT, not PAYE. Just saying .............
Common mistake
Calculating the PAYE on the date up to which the hours being paid were worked, rather than on the date of payment, is a common mistake which has caused people a lot of problems now that the mistake has been flushed into the open by the RTI requirement to report on or before the date of payment. There have been several threads on AWeb about this.
In your case, the payment is in Week 1 of 2014/15 and the PAYE should be calculated accordingly.