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  • How to deal with lump sum rectification of underpay

    I am a PAYE employee with no other incomes and earn a few thousand below the threshold where personal allowance starts to be lost. The company I work for may have been underpaying me and, if confirmed, would presumably rectify this with a lump sum payment. This would not be paid until next financial year. Having a lump sum payment in the next financial year potentially puts me well into the loss of personal allowance bracket and disadvantages me compared to if I had been correctly paid for my work during the preceding tax year in the first place. Is there a mechanism to subsequently apportion some of the lump sum in lieu of underpayment to the tax year that I worked for that money?