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Tax year for the arrear payments from Umbrella company

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    Tax year for the arrear payments from Umbrella company

    Hi,

    I am new to UK and working as a contractor. I started to work in the UK from January 2022.
    My salary is paid to me with 4 weeks delay.

    I currently got paid on April 7th 2022 for the week ending on March 11th.

    The tax is deducted based on 2022/23 tax slab.
    Since I started to work from Jan 2022 only, the tax is just inside 20% slab. But since it is considered into 2022/23 Tax year, the tax deducted was 40%.

    This salary which is paid to me 4 week delay has to be calculated based on the 2021/22 Tax year right ??

    Can anyone clear me this doubt.
    Should I raise any concerns to the umbrella company or with HMRC related to this miscalculation of tax.


    Thanks,

    #2
    No PAYE tax is paid on the day you are paid. So if that was after Tuesday it’s taxed in the 2022/3 tax year
    Last edited by eek; 9 April 2022, 15:31.
    merely at clientco for the entertainment

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      #3
      I think you’ll find that eek’s right and you’ll get nowhere with this.

      But since it’s just the two of you arguing now, thread closed.
      "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
      - Voltaire/Benjamin Franklin/Anne Frank...

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