abcdedfghi

[Deleted User]

abcdedfghi

[Deleted User]

Not if you are paid on 8th April which is week 1 of the new tax year or week 4 in your case.

If you are paid on a Friday, the next time a week 56 is possible is 5th April 2024. You would have to be paid on 7th April 2023 as Week 4.

And, upon further checking, you will be as 2024 is a leap year!

This will make no difference to you as you will still receive four weeks personal allowances on that date.

chrisbur

purdyoaten2 said:

This will make no difference to you as you will still receive four weeks personal allowances on that date.

A few years back HMRC started to adjust the tax codes for the following year to take back the tax allowance given for week 56.  
https://forums.moneysavingexpert.com/discussion/4702745/taxable-earnings-declared-in-wrong-tax-year-asda

As far as I know this continues.

[Deleted User]

chrisbur said:

purdyoaten2 said:

This will make no difference to you as you will still receive four weeks personal allowances on that date.

A few years back HMRC started to adjust the tax codes for the following year to take back the tax allowance given for week 56.  
https://forums.moneysavingexpert.com/discussion/4702745/taxable-earnings-declared-in-wrong-tax-year-asda

As far as I know this continues.

There you go - another part of history gone!

Dazed_and_C0nfused

I suspect week 53 happens a lot but is relatively small beer tax wise however in most cases week 56 will be allowing nearly £1k in extra allowances nowadays so not surprising HMRC will be asking for the tax owed to be paid.

[Deleted User]

Dazed_and_C0nfused said:

I suspect week 53 happens a lot but is relatively small beer tax wise however in most cases week 56 will be allowing nearly £1k in extra allowances nowadays so not surprising HMRC will be asking for the tax owed to be paid.

I am just surprised that the four weekly concept still is so prevalent.

Week 53 can only happen where there is a pay day on 5th April (also 4th April in a leap year). 4th and 5th April 2024 will be week 53 for those paid on a Thursday or Friday 

chrisbur

Dazed_and_C0nfused said:

I suspect week 53 happens a lot but is relatively small beer tax wise however in most cases week 56 will be allowing nearly £1k in extra allowances nowadays so not surprising HMRC will be asking for the tax owed to be paid.

The extra allowances for week 53 and week 56 are about the same over time.  Week 56 is about 4 times greater but week 53 occurs about 4 times more often.  I would also guess that there are more weekly paid people than four weekly so more extra allowances must i feel go to weekly paid than four weekly.  I have not seen any mention of weekly paid having an adjustment except in cases where for some reason HMRC have calculated the tax due (eg self assessment)
It seems to me that there is some figure for under-payment that HMRC's computer is programmed to ignore ( or everyone would be picked up ) and that would cause to much work to adjust. It must be somewhere between the week 53 and week 56 benefit.

Dazed_and_C0nfused

It used to be £50 although this was a long time ago so could have changed since then I guess.

One week's emergency code allowances would be £240 in 2021:22 so tax owed by w basic rate taxpayer would be just under £50, if that is still the current value used.

https://www.accountancyage.com/2011/06/29/paye-tolerance-level-to-revert-to-50/

[Deleted User]

chrisbur said:

Dazed_and_C0nfused said:

I suspect week 53 happens a lot but is relatively small beer tax wise however in most cases week 56 will be allowing nearly £1k in extra allowances nowadays so not surprising HMRC will be asking for the tax owed to be paid.

The extra allowances for week 53 and week 56 are about the same over time.  Week 56 is about 4 times greater but week 53 occurs about 4 times more often.  I would also guess that there are more weekly paid people than four weekly so more extra allowances must i feel go to weekly paid than four weekly.  I have not seen any mention of weekly paid having an adjustment except in cases where for some reason HMRC have calculated the tax due (eg self assessment)
It seems to me that there is some figure for under-payment that HMRC's computer is programmed to ignore ( or everyone would be picked up ) and that would cause to much work to adjust. It must be somewhere between the week 53 and week 56 benefit.

Yes - these are known as tolerances. Obviously all computerised now but the end of year process used to be known as A, N, Z-ing where A was to issue an assessment (now P800), N where there was no liability and Z where the tax was correct within the ‘tolerance’ which was £50 a few years back.

Prior to computerisation in 1987 it was quite a laborious task!

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye93075#IDADJG1B