Are there any rules determining when overtime should be paid to an employee, based on the dates that the overtime was worked? Generally speaking, employment income is taxed when it is paid, however, I am unsure if there are any rules that determine when it needs to be paid by.
I have a client who pays his employee monthly and would like the pay that is processed on the 20th of each month to include the overtime that was earned in the previous month.
As an extreme, assuming that the employee's contract allows it, is there any reason why an employer couldn't only pay out overtime once a year? This may have NI benefits for the employee.
Any links to any guidance/HMRC manual pages would be really appreciated.
With kind regards