PAYE Income - Tax Year 2012 or 2013?

jokerini

Registered User
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An employee will perform work in December 2012 but willl not be paid until January 2013. In which tax year does the income fall into?

Thanks
 
If the payslip is dated December, then the income is 2012. It doesn't matter if employee receives payment in Jan 2013.
 
Strictly speaking:

The employer will be obliged to operate payroll deductions on it in the period when the payment is made - so they will tax the pay in January 2013.

However, the individual taxpayer is taxable on income in the period when it is earned i.e. 2012. It will be up to the taxpayer to sort that out with Revenue if they think they'll benefit from it. Otherwise just let it lie in 2013.
 
Strictly speaking:


The employer will be obliged to operate payroll deductions on it in the period when the payment is made - so they will tax the pay in January 2013.

In practise this doesn't happen and would be near impossible to implement.
People receiving paycheck on say 4th Jan 2013 are being paid for the week ending 30th Dec. The payroll system will still be in 2012 mode when that week is being processed on say 2nd Jan.
 
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