Making an Advance Payment in 2023 for 2024

Where an employee's pay will straddle two tax years

Please note credits and rate bands cannot be given in advance when an employee's pay straddles two tax years.

Example:

An employee is normally paid on a Monday, but will receive two weeks' pay on Friday 21st December 2023 in respect of Monday 25th December 2023 and Monday 1st January 2024.

In this instance, the following will apply:

• the payment date must be reported as 24th December 2023 using the credits and rate bands for week 52 only
  
  
• the employee will subsequently not be paid in week one of 2024
  
  
• the employee will then get the benefit of two weeks' credits and rate bands in week 2 of 2024

Important notes:

• It is not appropriate to use week 53 in this scenario unless the pay date falls on 31st December 2023.
  
  
• Incorrect use of week 53 will cause underpayments for employee