Thanks Steve, I am aware that a 5 day week equates to 260 working days a year. My query was which method is deemed to be the right one to use, dividing annual salary by 260 and multiplying by working days in a month or dividing by 365 and multiplying by total days worked including weekends.
I have a salaried employee who has had a pay rise applied on day 14 of a month and I have to work out pay on the old rate up to that day and the new rate thereafter. Ordinarily annual salary is divided by 12 and the same paid each month.
It would seem you have to make your own mind up on the situation and then be consistent. Another fantastically woolly area of payroll, I fail to understand why HMRC can't make one way or the other obligatory and save us all a lot of confusion and possible backlash from disgruntled employees who don't like the way that particular employer has decided to deal with it.
There is probably no one correct answer here, just interested in other people's views. I have gone for the 260 method.