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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4983
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Is income tax in a tax year calculated from 5 April to 4 April

Resolved Question:

Is income tax in a tax year calculated from 5 April to 4 April or does HMRC use the monthly amount included on pay slips?
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

Income tax is calculated based on income received during the tax year 6 Apr to 5 Apr following.

As far as income from employment is concerned this information is taken from P60 the company issues to the employees at the end of each tax year.

I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 3 years ago.

Hi, thanks for coming back to me, my query arises because my salary increased from £76k to £130k per annum in January 2014 and I am concerned that this will have just pushed me over the £100k limit and I will lose my personal allowance in 2013/2014 retrospectively. However, the monthly payslips (effectively 1 April 2013 through to 31 March 2014) will show this as coming just under the £100k (£99,499 including a £10k bonus paid in December, which of course is preferable). I'm not sure whether the payslips will be what is submitted on the P60 or a prorata of the salary from 5 April 2013 to 4 April 2014. The monthly payslips correspond to the Tax Periods so I was assuming the figures used would be the ones on the payslips. If not, is there a way of mitigating this as I will only have run over by about £500 based on my rough calculations.

Expert:  taxadvisor.uk replied 3 years ago.
Thank you for your detailed reply.

Any salary for the period 1-5 Apr would normally be paid within Apr salary and will fall in tax year 2014-15.

If you are receiving a monthly salary then for tax year 2013-14 you should be looking at payslips for the period Apr 2013 to Mar 2014.

Mitigation of tax - pay into a pension scheme if you are already not doing so. If you have one, consider increasing your contribution in this tax year and attain relief at your marginal rate of tax i.e. 45%.

I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.


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Customer: replied 3 years ago.

Thank you very much for your response. I do pay into a pension scheme (5%) so hopefully this will have reduced my income with a comfortable margin below the £100k.

Expert:  taxadvisor.uk replied 3 years ago.
Thank you for your reply.

I hope this is helpful and answers your question.

If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get credited for it.