In this section:
- Employee payday falls on a non-banking day
- Changing the interval between paydays
- Moving payday to a different day of the week/month
- Extra payments on a day other than the usual payday
- Dealing with 'week 53' payments
Employee payday falls on a non-banking day
If an employee's regular pay day falls on a non-banking day (a Saturday, Sunday or bank holiday) and you pay them on the last working day before the regular pay day, or the next working day after the regular pay day, you may still treat the payment for PAYE (Pay As You Earn) tax and National Insurance contributions (NICs) purposes as having been made on the regular pay day.
For example, if pay would regularly be due on Monday 24 March 2008 (Easter Monday, which is in tax week 51) but you pay it instead on Thursday 20 March 2008 (which is in tax week 50), when it comes to working out PAYE tax and NICs the payment may be treated as if it had been made on 24 March.
This is the same whether you are using the P11 Calculator on the Employer CD-Rom, third-party software, or are updating a paper form P11 using either the manual tables or our PAYE tax and NICs calculators.
This system for dealing with pay days that fall on non-banking days also applies for cases in which the regular and actual pay days fall in different tax years. For example, a payment due on Sunday 6 April 2008 (which is in the 2008-09 tax year) but paid on Friday 4 April 2008 (which is in the 2007-08 tax year) may be treated for PAYE tax and NICs purposes as having been paid on 6 April and so in the 2008-09 tax year.
