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Posted Sat, 19 Aug 2023 17:56:40 GMT by
Hi Everyone - I hope someone can give me a steer... I'm trying to figure out how to correctly log income that I have received in this tax year (23/24) from an employer that I left in the previous tax year (22/23) - so that my income and tax code is correct. In summary: - I left my previous employer in Nov 22 - I received a payment in May 23 which has been taxed - This is not showing in my PAYE Income Tax Summary for this tax year - I'm not quite sure how to log this in my personal tax account - I see an option for 'Add a missing employer' - would this apply if they didn't employ me in this tax year? - I also see an option for 'Other income' - will this let me detail the tax paid? Help appreciated!
Posted Tue, 22 Aug 2023 11:23:39 GMT by HMRC Admin 17

An employee’s tax liability on a payment of arrears, arises in the tax year that the employee was originally entitled to be paid the extra amounts,
not in the year that payments are eventually made. 

However, if arrears are paid in one lump sum in the current tax year then PAYE is due at the time of payment. 

There will only be a benefit to have the payments allocated to the relevant years, if the lump sum payment has pushed youm into the higher rate bracket in the year of payment and you would have only been liable to basic rate if it was allocated back. 

Or if you have paid tax, when you would not have been liable to tax, if the payment had been made at the right time. 

If you have just paid basic or higher rate tax on the arrears and basic or higher rate tax would have been due had the payments been made
at the right time,  then there is no benefit in carrying the payments back​. 

A claim for arrears of pay for 23/24, should be made after the tax year has ended.

Thank you.

Posted Thu, 24 Aug 2023 06:53:31 GMT by
Thanks for the reply. I have a follow on question if you don't mind. The payment I received wasn't in arrears. It was performance related so made at the right time - just that I was no longer employed by the company. I have paid tax on this income — It just isn't reflected in my income summary section of my personal tax account (online) for this year. What is the best way to record this to show (i) the income was received and (ii) tax has been paid on it. For me, this is about logging it correctly (as opposed to claiming for arrears etc). Thanks
Posted Wed, 30 Aug 2023 15:36:37 GMT by HMRC Admin 20
Hi D3s19n,

If you contact our Income Tax department they can look into this for you Income Tax: general enquiries

Thank you.


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