Which Tax Year?

MsShorty

Hi, don't know if anyone can clarify this for me?

I am about to update my income estimate for this tax year (2012/2013) with Tax Credits.

In my second job, I am paid four weekly. My pay day will fall on Friday, 5th April 2013 (tax year 2012/2013) and this is the day my pay will go into the bank.

However, my wage slip will state pay p/e 6th April 2013, meaning that the last day of the pay period covered by that pay slip will fall in the next tax year (2013/2014).

My question is should I declare the pay on that pay slip to tax credits for this tax year 2012/2013 or will it fall in the next tax year 2013/2014, and therefore sholuld not be included in my estimate?

Hope this makes sense. Lol.

MsShorty

Oh dear! Anyone........

If it's any help, my next pay slip will be pay p/e 9th March 2013
and, as I am four-weekly paid, that will be pay period 13 (as obviously you usually get paid 13 times a year when four-weekly paid).

If the pay p/e 6th April is to be included in this tax year, that would make 14 pay periods in this tax year. Is this possible?

Any help much appreciated, or can you suggest another section in the forum where I could post this query?

chrisbur

MsShorty wrote: »

Oh dear! Anyone........

If it's any help, my next pay slip will be pay p/e 9th March 2013
and, as I am four-weekly paid, that will be pay period 13 (as obviously you usually get paid 13 times a year when four-weekly paid).

If the pay p/e 6th April is to be included in this tax year, that would make 14 pay periods in this tax year. Is this possible?

Any help much appreciated, or can you suggest another section in the forum where I could post this query?

14 pay periods in a year on four weekly pay is not only possible but has to happen every now and then. Thirteen times 28 days is only 364 days so to account for the extra 1 or sometimes 2 days you get what is known as a week 53 for weekly paid people, a week 54 for fortnightly paid people and a week 56 for four weekly paid people. These extra paydays occur when your payday fall on the 5th April or in a leap year on either the 4th or 5th of April. As your payday falls on 5th April then you should have a week 56 payment and 14 paydays in this year. I say should because it has been known for employers not to understand this (especially with four weekly pay as it only happens about once every 22 years) and to get the extra payday in the wrong year.

MsShorty

Thank you so much for your advice.

My main job is monthly paid. My second job is four-weekly paid and I have only worked there for 17 months, so not entirely clued-up on the 'ins and outs' of four-weekly pay. As my second employer is a large supermarket chain, I am presuming (and hoping!?) they know what they are doing.

My latest pay slip for pay p/e 9th February 2013 does indeed have an indicator that states 'Week 56 applies Y'.

So, presumably this means that pay for the pay p/e 6th April 2013, but paid into my bank on 5th April 2013 should be declared in my income for this tax year 2012/2013?

Thank you again for your help.

chrisbur

That payment will be included in your P60 for this year so I would assume it has to be included in the tax credit figures, but I do not really know a lot about tax credits so cannot be sure on that. Your P60 should say that week 56 applies but I have no idea if tax credits take any notice of this.

Regarding the week 56 there is something to be aware of if your tax affairs involve the tax office eg doing a self assesment or having your tax checked by the tax office. The tax office will check your tax based on your annual tax allowance put againt your total earnings but when your week 56 wage was calculated your employer will have given you an extra tax allowance so you will have recieved an extra 1/13 of your tax allowance. This will not make any differance if the code on this job was BR but if a tax code was given to it then when the tax office calculate your tax it will show that you did not pay enough in this employment.

MsShorty

Thank you very much.

As it will appear on my P60 then, yes, it will need to be declared to tax credits for this tax year. Thank you for clearing this up for me. Really appreciate it.

I would confirm that there is no self assessment involved. Also, this is my second job and my tax allowance is used up in my main job, therefore, I pay basic rate tax for the job in question.

Thank you so much for explaining so clearly. Really appreciate your advice.