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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
, see all updates

PAYE operation: payments for PAYE purposes: when PAYE should be operated

PAYE should be operated at the earliest of

  • When the employer actually makes the payment

Or

  • When the employee is entitled to be paid, even if the pay is not drawn until later

If the employee is a director PAYE should be operated at the earlier of

  • When the employer actually makes payment
  • When the director becomes entitled to payment
  • When the payment is credited in the company accounts or records, even if

    • The director cannot draw the money straight away because there is a block on the right to payment

    Or

    • The credit is not specifically in an account in the director’s name
  • When the remuneration is fixed or determined

    • If the amount for a particular accounting period is determined before the end of that period, take the date as being when the period ends
    • If the amount is determined after the period ends, take the date as being when the amount is determined.