Wage owed but worked in a previous tax year

deutsch

Say I am owed some wages by a company. This was worked in the previous tax year (e.g - 09/10). I also only paid NI and no taxes due to not working the full year and not exceeding the limit before starting to pay taxes.

If the company owes me the money, but includes it in this years tax year (10/11) - should I pay tax on this? (Due to being likely to exceed the limit by end of March 2011 if I continue to earn a salary). It wasn't my fault that the company paid it late? Can this be backdated, because I didn't work or earn it in the current tax year, but the previous year? It's only a small about, but if it was a large amount, wouldn't it be unfair?

CLAPTON

tax is paid when you get the money and not when earned.
so you will be taxed in this tax year and not backed to last tax year.

Hedgehog_pete

Tax is paid in the year it is credited ... which might be a long time before you received the money. I had this problem with a backdated state pension sum which went into my bank in May last year but was told by the DWP some of it should be included in my previous years tax self assessment .

It can also cause problems at the start of a new tax year.

Mikeyorks

Hedgehog_pete wrote: »

I had this problem with a backdated state pension sum .

Not the same issue. Tax on the State Pension is due when it accrues - which is not (necessarily) when it is paid. Salary / wages ....... the tax is due - with very few exceptions - when it is paid.