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Employee underpaid in previous tax year

  • Associate PM.Dip
  • Practice Licence
  • 2 posts
  • # 117117

Morning

I've recently qualified in Payroll Management and I have a client with a part-time employee whose contract entitles them to paid Bank Holidays.

They were not paid for any Bank Holidays in 2017/18 (and haven't yet been paid for them in 2018/19).

This is probably a stupid question, but I thought it was worth asking...

Do I have to submit an EYU for 2017/18, or can the shortfall be paid and taxed in this tax year (the employee's earnings are below the LEL for NI, so it's only gross/net pay and PAYE that are the issue here).

If anyone can provide any guidance on this please, I'd be grateful.

Kind regards

KBDBK



Edited at 19 Sep 2018 09:06 AM GMT

Edited at 19 Sep 2018 09:06 AM GMT

  • Associate PM.Dip
  • Practice Licence
  • 2 posts
  • # 117118

I braved the HMRC helpline and got a direct answer from them.  I do have to submit an EYU.

Oh well, I thought it was worth a try.

KBDBK

  • Associate
  • Practice Licence
  • 14 posts
  • # 117242

I think most people in the real world would just make the payment in this tax year, tbh!

 

Out of interest, if you make 2017-2018 the year of the payment, how does this work with the information on the p60 information the employee will have received?

  • Member PM.Dip
  • Practice Licence
  • 18 posts
  • # 117249

Hi Yolande,

If you find yourself facing a requirement to submit an earlier year update you will also have to reissue P60s for all employes affected by the change.

Regards,

Jaye

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