Back dated pay rise

Hi If a pay rise is settled and results in pay being owed must this money be paid as a lump sum or can it be spread across remaining pay periods in the financial year. For example back pay of £1000 is owed employees have asked than rather have this in one lump sum they have it over the next 4 months ie £250 per month. This is to stop problems with Universal Credit and Student Loans where they will appear to have hit a threshold when in fact they haven't.

This will be down to employment law and any contractual obligations. If it is not settled in a timely manner they could claim for unlawful deduction of wages or breach of contract so you should get employment law advise

Hi,
This isn't a question for the Employer Helpline I'm afraid you will need to call ACAS (Advisory, conciliation, and arbitration service) on 0300 123 1100.
They will be able to advise the correct way to make the payment. 
Thank you.

HI I haven't made my original post clear enough I think. The option to have the money paid in a lump sum is there. I was asking if there was any tax reason why people couldn't have their payments spread if they chose to or would this fall foul of some rule regarding Student Loans. What has happened previously is people have received this lump sum and a proportion of it has been taken for Student Loan re-payment. At the end of the tax year it has been claimed back as over the year the threshold hasn't been met it just looks like it for that one month.

Hi Matthew Dyer,
I think in this case it would be best to contact HMRC direct:
Contact HMRC
Thank you. 

 

Hi, I recently received a lump sum back pay which was agreed by the trader union. This was for £1,950 gross. My question to HMRC is should all deductions go from the gross salary including the lump sum to include pension contributions and student loan ?? Please advise as I lost alot from the one off payment.

Hi ChristineO Carroll,
The lump sum payment is taxed when paid to you and if you overpaid your tax then a refund would be due in the next pay if in the same tax year.
If you contact HMRC we can check if correct tax has been paid:
Income Tax: general enquiries
Thank you.