HM Revenue & Customs has cleared up
the confusion over the operation of
as You Earn (PAYE) and National
Insurance Contributions (NIC) where pay is due on Good Friday, 6 April 2007,
PricewaterhouseCoopers has said.
Good Friday is the first day of the new 2007/08 tax year but because it is a
bank holiday, wages are paid earlier and so technically should fall in the
2006/07 tax year.
But HMRC has now clarified that for PAYE and Class 1 NIC purposes these
payments should be shown as being paid on the 6 April – in the 2007/08 tax year.
Gary Hull, director of employment solutions at PricewaterhouseCoopers LLP,
said: ‘HMRC’s original guidance raised a number of practical problems for
employers and could have led to inconsistent PAYE deductions at the start of the
tax year. However, they have now clarified that for PAYE and Class 1 NIC
purposes these payments should be shown as being paid on the 6 April – in the
2007/08 tax year.’
For the full guidance see:
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