Making an Advance Payment in 2024 for 2025

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 27th December 2024 in respect of Monday 30th December 2024 and Monday 6th January 2025.

In this instance, the following will apply:

• the payment date must be reported as 22nd December 2024 using the credits and rate bands for week 52 only
  
  
• the employee will subsequently not be paid in week one of 2025
  
  
• the employee will then get the benefit of two weeks' credits and rate bands in week 2 of 2025

Important note:

• It is not appropriate to use week 53 in this scenario unless the pay date falls on 30th or 31st December 2024.
  
  
• Incorrect use of week 53 will cause underpayments for employee