Directors appointed during the tax year have a pro-rata earnings
period. The pro-rata earnings period is the number of weeks left in
the tax year from and including the week of appointment (Regulation
8(2) SSCR 2001).
A person who is a director at the start of a tax year or
ceases to be a director during the tax year has an annual earnings
period for that tax year (Regulation 8(3) SSCR 2001). The annual
earnings period also remains if the company goes into liquidation.
A tax year starts on 6 April and ends on the subsequent 5 April.
All pro-rata calculations for directors are based on 52 weeks
even if there are 53 weeks in the year. However, if a director is
appointed in tax week 53, the pro-rata earnings period is 1
week.
