What is pay period 53?
Pay period 53 takes place when there are 53 weekly pay days in the year (for example, if it’s a leap year). The extra pay run is commonly known as a week 53.
How do you know if you have a week 53?
If you pay your employees weekly, two weekly or four weekly on Thursday 6 April 2023 or Friday 7 April 2023, you’ll have an extra pay run at the end of the 2023-2024 tax year.
If you pay your employees monthly, you won’t have a week 53.
How does it affect the payroll run?
If you run a weekly, two-weekly or four-weekly payroll you may need to complete an additional period after week 52 to finish your PAYE tax year.
How do I amend the pay schedule?
Once you’ve submitted pay period 53, select ‘Edit schedule’ – you can find this on the payroll page under the dates for your next expected file submission – to manipulate pay period 1 to match the dates to your payroll structure.
Monthly payrolls aren’t affected by the additional week.
What does pay period 53 mean for employees?
HMRC instructs employers to give employees an extra amount of tax-free pay – even if their tax-free pay for the year has been allocated. This helps to protect employees’ take-home pay, and ensures the tax for that week doesn’t vary too much from the usual amount.
Once the tax year ends, HMRC will recover the underpaid tax given by the extra personal allowance, by sending out a P800 calculation.
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