Good Friday 6 April 2007

We’ve been asked to give further guidance on the operation of PAYE and NIC where pay falls due on Good Friday 6 April 2007 (the first day of the new 2007-08 tax year) but is paid earlier and so strictly falls in 2006-07.
The guidance we issued in September raised a number of practical difficulties for some employers and could lead to inconsistent PAYE deductions for employees at the beginning of the tax year. It is therefore supplemented by the guidance set out below. This will also apply when Good Friday next falls on 6 April in 2012.
This guidance does not replace or alter the existing guidance in booklet CWG2 about regular paydays falling in week 53 of the tax year.

Operation of PAYE & Class 1 NIC when the regular date for payment is a non-banking day

When a regular pay day falls on a non-banking day (Saturday, Sunday or Bank Holiday) and because of this the payment is made on the last working day before the regular pay day, the payment may be treated for PAYE and Class 1 NIC purposes as having been made on the regular payment day.
For example:

1. Pay due on Bank Holiday Friday 6 April 2007 or Bank Holiday Monday 9 April 2007 (tax year 2007-08) but paid on Thursday 5 April 2007 (tax year 2006-07) may be treated for PAYE/NIC purposes as being paid on 6 April and 9 April respectively.

2. Pay due on Sunday 6 April 2008 (tax year 2008-09) but paid on Friday 4 April (tax year 2007-08) may be treated for PAYE and NIC purposes as being paid on 6 April.

3. Pay due on Saturday 6 January 2007 (tax month 10) but paid on Friday 5 January 2007 (tax month 9) may be treated for PAYE purposes as being paid on 6 January.