Weekly pay Vs monthly pay & 53 wks tax credit

S

some1gr8

Registered User
Messages
52
Hi Guys

Currently i get paid weekly but i would prefer to be paid monthly due all Direct debits and mortgage payment. It will make more easy to manage my house budget but only things that stopping me is 53 weeks tax credit (My understanding is that you get extra 1 week tax credit for a year with 53 weeks).
Do you really get extra tax credit for 53 week yr or it works out same over whole year?????

Thanks
 
Can you pick your pay frequency? I'm working 20 plus years and could never pick.

I have been paid weekly, monthly, 4 weekly and now 2 weekly.

By far 2 weekly is the best, so if you can pick, go this way. One pay is for the main bills and the other one for week to week. We had to change from 4 weekly to 2 weekly and colleagues who were completely opposed to it have since admitted they now prefer it.

I get my weekly tax credit multiplied by two.
 
Surely you only get the same annual tax credit no matter how you are paid?
 
My wife is paid like this,and don't forget,twice a year you get 3 pay days in the month!If you treat the 2 fortnightly pay packets as your total wages then you have a bonus for Christmas /holiday etc.
 
From http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-tax-year.html#section2

"2. Week 53, fortnight 27, etc

"Week 53" occurs when there are fifty-three weekly pay days in the year. This happens when a pay day falls on 31 December or, in a leap year, on 30 or 31 December. The employer should set tax credits and the standard rate cut-off point against that payment on a non-cumulative basis (week 1/month 1 basis) in accordance with the following table:

Pay day falling on 31 December (or in a leap year on 30 or 31 December):
If the number of pay days in the tax year is: Then tax credits and the standard rate cut-off point to be set against payment is:
53 Weekly As for week 1 basis ( paragraph 2 - Employee Pay Day – Calculating Tax Due)
27 Fortnightly As for week 1 basis ( paragraph 3 - Employee Pay Day – Calculating Tax Due)
14 Four-weekly As for week 1 basis (paragraph 4 Employee Pay Day – Calculating Tax Due)
As a result, the employee will get the benefit of more than the year's total tax credits and standard rate cut-off point.

If the emergency basis applies, the tax credits and standard rate cut-off point, if any, and the rate of tax deduction will depend on the number of calendar weeks or months since the emergency basis first applied, within the tax year, to the employee's pay (see Calculation of tax under the PAYE System paragraphs 8 - 9)."


So when a week 53 applies, the employee actually does the get benefit of an extra week tax credits and cut off point. This should only happen once every few years.
 
Nutso said:
... This should only happen once every few years.
Click to expand...
Usually every 7th year (there are 52.14 weeks in a year) so an extra pay-day and an helping of tax-credits is common. Some employers turn annual salaries into weekly salaries by dividing by 52.14
 
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