PAYE - Year End

PAYE - Year End

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Say the Y/E is 4th April.

A person gets paid 4 weekly, so is paid on the 21/03/14 then next on the 18/04/14.

Obviously the first one is assigned to tax year 13-14. Will the second be assigned to tax year 14-15? Or will it work similar to accruals & pre-payments in that, since 2 weeks was incurred  in tax year ending 13/14 then it will be split across the 2 tax years?

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Euan's picture
By Euan MacLennan
28th Apr 2014 11:14

PAYE or Accounts?

PAYE is based on payments made in a tax year, regardless of the period to which the pay relates, so the payment on 21/03/14 will be included in the person's form P60 for the year ended 5th April 2014 and the payment on 18/04/14 will be included in next year's form P60.

If you are preparing accounts to 4th April (a very odd date), you will need to accrue for however many days of the amount paid on 18/04/14 were actually worked up to 4th April.

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