Extra week paid in last financial year

Umb

Hi,

My employer paid me an extra week's salary (by mistake while I was on holiday) in last tax year, and now to compensate for that error they are not paying me a week's salary in the new financial year although I have worked for two weeks(we are paid bi-weekly). What is the tax implications for this. Am I better or worse off by this arrangement?


Thanks

Umb

[Deleted User]

in most cases it will be neutral

Umb

Hi woodbine

Thanks for the reply. But the extra payment is in last financial year and the missing payment is in current financial year. I'm under the impression that because of extra payment last year I paid more tax?

Is it not the case?

Thanks

Umb

[Deleted User]

yes but as you will be a week short in this financial year you will pay a weeks less tax; so over the 2 years its neutral

zagfles

Umb wrote: »

Hi woodbine

Thanks for the reply. But the extra payment is in last financial year and the missing payment is in current financial year. I'm under the impression that because of extra payment last year I paid more tax?

Is it not the case?

Thanks

Umb

It depends what you earned in both years. If your income both years was between about £8200 and £42000 then it won't make any difference to tax.

Umb

Thanks everyone for their quick reply.