PAYE72005 | 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.