Tax question - 53 week pay year

[pistonheadforum]

Hello,

We get paid every 4 weeks - normally 13 pays per year. Apparently due to calander this year will result in a week 53 pay and this means effectivly paid 14 times this year.

This is has subsequently gerenerated a tax bill of a significant mount and HRMC claim they will recover this over the next 12 months by increasing tax to even out the amount.

Does this seem as though something has been missed in payrol (I've not actually received a pay rise but having to pay more tax!) or does this seem "normal".

Just asking here before I contact them to see what's what as it's a bit of mystery to me.

Thanks in advance.

[Doofus]

I'm not sure how you'll get paid 14 times in one year, on a 4-week cycle. If you get paid every four weeks, then you'll get paid 13 times in a year. 14 pay days is 56 weeks. 392 days. Almost 13 months.

[pistonheadforum]

Doofus said:

I'm not sure how you'll get paid 14 times in one year, on a 4-week cycle. If you get paid every four weeks, then you'll get paid 13 times in a year. 14 pay days is 56 weeks. 392 days. Almost 13 months.

Yeah it a case of paid on the first day and the last day of the tax year which takes the payments to 14 which is different from the normal 13 payments which in turn causes HMRC computer to reclaim the missed tax.

A new one for me too - hence the confusion.

Oops title is wrong should be 56 week pay year!

Edited by pistonheadforum on Wednesday 24th August 10:04

[OutInTheShed]

Put simply, you've used your annual allowance over the 13 paydays, and there's none left for the 14th, so all the last payday is taxable, and maybe even taxable at higher rate. If it's taking you into higher rate, maybe consider an extra pension contrib if you can?

I think some people even shuffle pension contribs from one year to another in your situation, but I don't know the details of that.
It may be a useful way to even out the years, if that matters?

[Panamax]

All that's happening here is you get the advantage of deferring tax on the 14th period into the following year. So it's a benefit to you.

IF you wish to juggle additional pension contributions to suppress last year's tax (at whatever rate you are assessed) you can do so - as long as the pension plan was already in existence last year.