Have you been paid twice in the same tax period?

As an umbrella contractor, it is not uncommon to be paid twice in the same tax period. However, this can cause confusion when it comes to understanding your payslips. Fear not! In this blog we cover everything you need to know about being paid twice in the same tax period, and what to do if it happens to you. 

‘Tax periods’ explained…

When you work through an umbrella company, you become one of their full-time employees. This means you are paid through PAYE – with National Insurance Contributions (NICs) and taxes worked out and deducted on your behalf. 

The tax year runs from April 6th to April 5th. Depending on how your pay schedule works, this will be divided into monthly or weekly periods by your employer (aka your umbrella provider).

• Weekly tax periods start from whichever day 6 April lands on for the given year. For example, 6 April fell on a Thursday this year, meaning the tax week for the tax year 2023/24 will be Thursday to Wednesday. 
• Tax months always run from the 6th of one month to the next e.g. April 6th – May 5th.

Why do some umbrella contractors end up getting paid twice in the same period? 

There are a few situations which could result in an umbrella employee getting paid twice in the same tax period. For instance: 

• If you changed assignments/end-clients mid-tax period.
• You were awarded a bonus.
• Human error/issues with payroll. 
• Working for multiple clients or agencies. 

Double-check your most recent payslip as you probably got paid earlier than usual due to it being the Easter bank holiday – this is a common time for an accidental double pay! 

I’ve been paid twice in the same tax period…what should I do? 

Talk to your umbrella provider and they will be able to provide further clarification. The most important thing is not to worry – in most cases, the situation will resolve itself and you won’t have to do anything. 

Even if your tax bill is higher than usual due to the double payments, it doesn’t mean you’ll end up paying too much tax overall. In other words, you will have paid the correct amount of tax by the end of the tax year. Obviously, if this turns out not to be the case then you can file for a tax refund. 

How will being paid twice impact my payslips? 

Although you will receive more than one payslip, all you need to focus on is the final one as this will contain all the information you need about the given tax period. For example, if you were paid two instalments of £800, your latest payslip will show your net pay as being £1600. 

We hope you found this blog useful. Our team are always here to chat should you have any questions. Email us today via [email protected].