Income tax on back pay?
Discussion
I'm about to receive a chunk of pay I'm owed for work from last November up until the present. Obviously a good chunk of this was received in the previous financial year. My earnings last year were much lower than they're likely to be this year so I'd much prefer to pay tax on it 'last year' as it were. Presumably, as I actually earned it last year, there must be some mechanism to do this? Can anyone advise me?
Our university accounts department are a useless shower of b
ds so I'd like to have some idea of how to counter their expected 'computer says no' response...
Our university accounts department are a useless shower of b
ds so I'd like to have some idea of how to counter their expected 'computer says no' response...hairykrishna said:
No, they haven't.
Edit. Actually, come to think of it, I think they may have given me a P60 at the end of November as that was the end of my previous, temporary, 2 month contract. I need to check my paperwork.
Can't have given you a P60 in November. P60s are issued to staff members who are/were in employment at the end of the tax year (i.e. at 5 April).Edit. Actually, come to think of it, I think they may have given me a P60 at the end of November as that was the end of my previous, temporary, 2 month contract. I need to check my paperwork.
Edited by hairykrishna on Tuesday 30th April 18:07
If you were in employment with them at 5 April 2013, they should have given you, or will be shortly giving you, a P60 showing your salary up to the 5 April 2013 i.e. the end of the tax year. If you left them in November 2012, they would have given you a P45 at that time which would have shown your earnings in the tax year 2012/13 up to the date you left i.e. covering the period from 6 April 2012 to November 2012.
As they re-hired you after November, the P60 will show your salary and tax from the date you recommenced working with them up to 5 April 2013.
The point I was making is that, if they have not finalised your salary situation for the year ended 5 April 2013, they might be able to process the extra bit they paid you as part of your 2012/13 salary.
Once they finalise the 2012/13 payroll and give you your P60, it will be too late and any extra bits they pay you will have to be processed as part of your 2013/14 salary.
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