Delaying payment till April 6th

[Fred Bloggs]

Correct

Yet again it seems Umbrellas are treated differently under the rules than consultancies, or seem to think they are. In large consultancies its fairly common to spread big payments, like bonus, or redundancy, over multiple tax years if it helps the employee. Especially in cases where they employee is planning to retire and will have a full tax allowance available next tax year, and so on, I have seen the bonus held over till then multiple times.

I dont know what the law actually says, but it seems the practice varies wildly.

I think you'll find the law doesn't say anything. You pay your tax in the year your income is received. It's just about one of the only remaining advantages of running a Ltd Co as a contractor. You never need pay higher rate tax.

[lucyclarityumbrella]

Hope this helps (with regards to a brolly anyway)...

Section 18 ITEPA 2003

With the exception of some foreign earnings (see EIM42210), money earnings are chargeable to tax in the year they are received (see EIM42201).

Money earnings are treated as received for assessment purposes, and paid for PAYE purposes, on the earliest of the following:

when a payment of earnings is actually made or when a payment on account of earnings is made (see EIM42270)
the time when a person becomes entitled to payment of earnings or a payment on account of earnings (see EIM42290)