This tax year, because of when our paydays fall, we will have 14 rather than the usual 13 pay periods. We wrote to colleagues about this early last year but are reminding you now as we want to make sure everyone is aware and has the information they need.
For most colleagues, this means you will have more than a year’s personal tax allowances (tax-free pay) and therefore have paid less tax than you should in the year up to 5 April 2019.
After the tax year (April 2019) HM Revenue and Customs will review how much tax you have paid in 2018/19 and contact you to confirm how much you owe and agree how you will pay this back. For the majority of colleagues this will be included in your tax code for the following year.
The 14th pay period could also mean that your pay moves into the next tax band, or that non-tax payers become tax payers for 2018/19. It could also affect any statutory benefits you receive, such as Child Benefit or Tax Credits.
More information on understanding your tax in the 2018/19 year can be found on Our Tesco here. This page now includes some scenarios which set out the impacts for a range of salaries, and a calculator to help you work out if there is an impact on you.
For further questions about your circumstances, please contact HM Revenue and Customs.