Paystream Tax Application to Payroll

**Paralytic** · 6 April 2023, 17:02

I always thought that the tax rules that apply are those in force on the payslip date. So, if the payslip is dated today, then the new rules would be applied. But, that's an assumption on my part so may be wrong.

That's the question you should be asking Paystream (and your accountant).

EDIT: FWIW, ChatGPT says I'm wrong, and that last tax year's rules should apply to work done in that tax year. But, it is often wrong too.

The tax rules that apply to work carried out in one year but included on a payslip in the new year will depend on when the work was actually performed and the tax year in which it falls.

If the work was carried out in the previous tax year, the tax rules for that year will apply, regardless of when you receive the payslip. In this case, your employer should use the tax code that applied to your tax circumstances for the previous tax year.

**Wilbur1** · 6 April 2023, 17:41

Thx all - yes, I agree that PAYE should be applied for the year that the work was conducted in. Hoping that Paystream rectify this.

**ladymuck** · 6 April 2023, 21:31

PAYE relates to when you were paid, not when you did the work.

(and this should be in the accounting forum, not general)

**Eirikur** · 7 April 2023, 09:10

I'm with Paystream my payslip this week was dated 05/04 and tax was correctly applied to the previous tax year 22/23 (with my tax code I have a take home pay of 45% FFS)

**TheDude** · 7 April 2023, 09:25

Make sure the changes are correct. Paystream made incorrect deductions and left me with a £5k tax bill.

**eek** · 7 April 2023, 09:53

Originally posted by Wilbur1 View Post

Hi - did anyone get charged extra PAYE today by Paystream Payroll due to their applying the new tax year tax computations to work completed in 2022 - 2023 ?
I worked for weeks in March in 2023 and Paystream Payroll have not applied PAYE from 2022-2023 and instead applied the new tax year 2023-2024
This would mean that I would not have worked a full year (ie for weeks 48 - 53 in 2023) which impacts P60 and mortgage applications and all sorts
Have contacted #paulmalley the Paystream Umbrella CEO and am contacting #HMRC
Anyone had this with Paystream as the Payroll resource said that lots of people had complained (I wonder why)?
Had always found Paystream to be good until now.
Let me know

It comes done to the day pay stream receives the money and so pays you.

if paystream received the money on Thursday then yes they will be paying you in the 23/24 tax year because that was when the money was received to pay you.

and no, while it will impact the total amount of tax you paid (unavoidably, you gain last year and should get a small refund from HMRC, but you lose it in 23/24) it does NOT impact things such as mortgages because you aren’t paid a salary, you get a daily rate and banks will be looking at that.

**eek** · 7 April 2023, 09:59

Originally posted by Paralytic View Post

I always thought that the tax rules that apply are those in force on the payslip date. So, if the payslip is dated today, then the new rules would be applied. But, that's an assumption on my part so may be wrong.

That's the question you should be asking Paystream (and your accountant).

EDIT: FWIW, ChatGPT says I'm wrong, and that last tax year's rules should apply to work done in that tax year. But, it is often wrong too.

Chatgpt extrapolates from the information it has weighted on the amount of data it has. So often the advice of clueless idiots overrides what HMRC would say.

basically between April 5/6 - umbrella firms will switch their payroll to 23/24 so it’s impossible to backtrack payments (and it’s wrong to do so because the umbrella contract will say you are paid on the day the money is received or due for payment). Which with Paystream I suspect would usally be Friday but was done yesterday due to today being Easter

**eek** · 7 April 2023, 10:33

Originally posted by Eirikur View Post

I'm with Paystream my payslip this week was dated 05/04 and tax was correctly applied to the previous tax year 22/23 (with my tax code I have a take home pay of 45% FFS)

When were you paid - I suspect it was Monday -> Wednesday and not yesterday.

**ladymuck** · 7 April 2023, 11:58

Originally posted by Eirikur View Post

I'm with Paystream my payslip this week was dated 05/04 and tax was correctly applied to the previous tax year 22/23 (with my tax code I have a take home pay of 45% FFS)

That's because 5 April is in the 22/23 tax year.

If your payslip was dated 6 April that would be in the 23/24 tax year.

Paystream Tax Application to Payroll