Wages for tax year 2021/22 paid in last week of 2020/21 - Is this correct?

wannaretireearly

Looking for advice as explained in the title. Basically on the 01/04/21 my husband was paid his weekly wage due on that day AND paid the weekly wage due on 08/04/21-paid early as he was off for the company Easter Break. This means that the wage he was due in week one of this tax year was attributed to the previous tax year. This would not be an issue but basically that extra payment now means his annual taxable income for 2020/21 is just over the £50250 which excludes him from benefitting from the 10% marriage tax allowance I transferred to him. We've only just discovered this, having prepared a self assessment for other income (that began in 2020) in addition to earned income. He now owes another £500 in tax as well as the extra due on the other income.
He is being made redundant in January and so if there is anything we can do about this i.e get his employer to advise HMRC about the earnings for 8/4/21 being paid early, we need to act now. 
Does anyone have any advice/can provide a link to something I can read for guidance. I have looked on HMRC website and the internet in general but can't find anything to help. Any advice will be gratefully received! 
Thanks for reading x

nb. When I looked on his HMRC account it clearly shows 0.00 paid for 8/4/21

Dazed_and_C0nfused

I suspect what you are interested in is section 1.8 of the CWG2 booklet

https://www.gov.uk/government/publications/cwg2-further-guide-to-paye-and-national-insurance-contributions/2020-to-2021employer-further-guide-to-paye-and-national-insurance-contributions

Also, has the 2020:21 Self Assessment return been filed yet?

If not how much income is being taxed at 40%?

wannaretireearly

Thank you so much for the link. I'll have a proper look at that later today so I fully understand the relevant section. The self-assessment hasn't been submitted yet. I wanted to know if we could do anything about it and approach his employer/HMRC first. the figure shown for 40% tax is £444.
The annoying thing about it all is that he has a salary sacrifice pension to which he always paid an increased percentage of his wages to keep his taxable earnings within the 20% bracket. If we'd known they were going to pay the week early then he would have just upped his contributions to avoid this happening.
I thought I would do a self assessment calculation without the extra week (correct amount) and one with (incorrect amount), then send a copy of each with a link to the guidance you provided above to his HR advisor dealing with his redundancy so they can resolve it with payroll. 

chrisbur

Dazed_and_C0nfused said:

I suspect what you are interested in is section 1.8 of the CWG2 booklet

https://www.gov.uk/government/publications/cwg2-further-guide-to-paye-and-national-insurance-contributions/2020-to-2021employer-further-guide-to-paye-and-national-insurance-contributions

Unfortunately section 1.8 covers specific circumstances.  The regular payday has to fall on a Saturday Sunday or Bank Holiday.  Also the payday has to be moved to the nearest day either before of after the Sat Sun or Bank Hol. In this case the regular payday was on Thursday 8/4/21 so none of these, and was moved a full week.

The nearest the CWG2 comes to this situation is section 2.7.4 which covers holiday pay paid in advance.  This permits the employer where someone is on holiday for say one week and that pay is made the week before the holiday, to use the tax allowance for the following week rather than the week of payment.  So say payment on week 16 includes holiday pay for week 17 then can be taxed as if payment was actually made on week 17.

The guide makes no mention of what to do if week 1 is paid on week 52 .  I would assume that an adjustment here is not possible for the payroll dept, though it might be accepted by HMRC that had 2.7.4 been possible then earnings in the year would have been significantly lower.

Dead_keen

I'm not sure it makes a difference what HMRC's guidance or PAYE regulations say here.  Even if it was allowed, the employer is unlikely to be persuaded to re-run the payroll with a different date and re-do P60s, etc.

From an individual's perspective, the tax point here is the date that the employee is paid.  This is Rule 1 in s18 ITEPA 2003.  So that means that it would not be possible for the individual to claim on their self-assessment tax return that the earnings paid in one tax year should be taxed in the later tax year.  So on the facts above, higher rate tax would be paid.

It's not possible to make pension contributions after the end of the tax year to prevent higher rate tax being paid.  It is possible to do so by making charitable contribution (see "Getting tax relief sooner" here for an outline of the terms and conditions - https://www.gov.uk/donating-to-charity/gift-aid).  Whether it is worth making new contributions (as opposed to claiming contributions already made) is another question.