HMRC’s Weekly Update Number 132 contained an article relating to underpayments of tax where the employer has operated a Week 53. The article confirmed previous reports from The Learn Centre that, whilst an employee may be entitled to 53 weekly pay adjustments via PAYE, they are only entitled to 52 in the legislation. In these [...]
It is pointless trying to make some news in a week where not an awful lot has happened in the payroll environment. Therefore, let’s enjoy the relative quiet whilst it lasts! However, I encountered a number of questions on the same subject last week – the subject of Week 53 payments resulting in an underpayment [...]
FAQ – Some of our employees have been notified of tax underpayments as a result of a Week 53 situation in the previous tax year. Why could this be?
Since tax started to be collected via PAYE, the system has had to make adjustments for the fact that there are these additional paydays in a tax year. The fact remains, however, that tax is due on the taxable pay paid in this extra pay period and, likewise, this is assessable to tax. To ensure [...]
Early Repayment of Student Loans, Week 53, Revised RTI Regulations, Benefits and Expenses Statistics, International Tax Issues and Budget ‘Other’
Now that Easter is behind us, we can start to look at the challenges that are ahead at the start of the new tax year. In the immediate term, as always, we have year-end and P11Ds to process. Make sure you familiarise yourself with our excellent courses covering these topics. First week of the tax [...]
In March, we advised that we had been communicating with HMRC about underpayments of tax that may arise from the correct application of Week 53 procedures. Tax is collected via PAYE on a provisional basis to ensure, amongst other things, that there are no fluctuations in net pay simply as a result of there being [...]
The Learn Centre (TLC) has received quite a few queries about the possibility of underpayments of tax due to increased instances of Week 53 situations in the 2011/12 tax year. Therefore, this warranted an in-depth discussion on the topic. The tax year is divided into 52 weeks, 26 fortnights or 13 four-weekly pay periods. However, [...]