Hi all, following the detailed guidance ...
Hi all, following the detailed guidance from HMRC re: calculating average pay for employees whose pay varies, I still have a query regarding what pay falls in the 2019-20 tax year for this purpose and was hoping someone might be able to help clarify it. The first payment in 2019/20 tax year for our employees who are on flexible pay fell on 4 May 2019, but some of that pay included earnings for hours worked 24 Mar-5 Apr 2019 i.e. prior to the start of the 2019-20 tax year. In order to calculate average earnings in 2019/20 tax year to the date an employee was furloughed, should I deduct payments in respect of rota hours worked prior to the 2019/20 tax year but paid on 4 May 2019 - or should all of the gross pay received on 4 May 2019 be included? Thanks, Rebecka.
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@Alison Barlow Thanks for clarifying Alison!
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Hi @Rebecka Mustajarvi
Any calculations for the 2019/2020 tax year should be done on amounts paid in the tax year regardless of when the hours were worked. So it is fine to include all of the hours that were paid in 4th May 2019.
Kind Regards
Alison
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