Hello,
>
>If my pay for March 2003 is processed for PAYE in mid April 2003 (after the
>5th), which tax year does this pay fall into? Does it depend on the period
>you worked it or when it's processed?
>
>Thanks,
>
>Seb.
>
You can tell how your employer has treated it by looking at the cumulative pay but theoretically it should be when it was earned.
If you received payment afetr 5th April then it's classed as 03/04 year.
Receipt usually indicates the relevant tax year.
However, "receipt" must analysed in accordance with section 202B ICTA 1988.
You can tell how your employer has treated it by looking at the cumulative pay but theoretically it should be when it was earned.
s202B ICTA 1988 explains the meaning of receipt as being the earliest of:
(a) when the payment is made, and
(b) when a person becomes entitled to payment.
s202B ICTA 1988 explains the meaning of receipt as being the earliest of:
(a) when the payment is made, and
(b) when a person becomes entitled to payment.
Agreed, but in this case I wonder what the situation is. Companies don't usually process the payroll in the middle of the next month. I've seen them pay in the middle of the current month or at the end of the month. Overtime can be paid later of course. I agree I was wrong saying earned. Correct is entitled - wrong is earned or received.
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