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Posted Fri, 01 Dec 2023 14:38:51 GMT by Wakkasali
Hi, if a PAYE employee leaves a company on the 31st March 2022 but gets paid for employment during the previous tax year (April 2021 - April 2022) in the new tax year of April 2022 - April 2023. Which tax year should this amount be attributed to? a) The previous April 2021 to April 2022 or b) The April 2022 to April 2023? as the payment was for the previous year but paid late, I would add it to the previous year or is that incorrect?
Posted Wed, 06 Dec 2023 07:39:08 GMT by HMRC Admin 25
Hi Wakkasali.381,
Work done in a particular tax year should be paid and taxed in that same tax year.
This ensures an employee the best use of the tax free allowances they are entitled to.
If you are an employer and have had trouble doing this, please contact our employer's helpline on 0300 200 3200.
Thank you. 
Posted Wed, 06 Dec 2023 08:21:32 GMT by Wakkasali
Thanks for your response. I am the employee that was paid in the following month/tax year. As my records show this being in the wrong tax year, how do I correct or dispute this now?
Posted Thu, 07 Dec 2023 15:38:31 GMT by HMRC Admin 25
Hi Wakkasali,
An individual who is resident and domiciled (or deemed domiciled) in the UK will be automatically taxed on the arising basis.
This means they will pay UK tax on their worldwide income and gains in the tax year the monies are paid.
Thank you. 

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