A tax period is the position of a pay period within the tax year, expressed as a number. A monthly payroll has tax periods 1 to 12, a fortnightly one 1 to 26, a weekly one 1 to 52, all counted from the 1 March year start.
What it means
The tax period number tells the calculation how far into the tax year a pay run falls, which matters for annualising PAYE and for averaging year-to-date figures. It is how payroll keeps a consistent view of time across cycles with different frequencies.
Where it fits in
Each pay run is stamped with its tax period. The number drives the pro-rating in PAYE annualisation and lines a pay run up against the EMP201 month it belongs to. Fixtures and tax records often reference periods directly, for example p01 for the first period of the year or p12 for the last month.
Key rules
- The numbered position of a pay period within the tax year.
- Counts from 1 at the 1 March tax-year start.
- Total periods follow the frequency: 12, 26 or 52.
- Used to annualise PAYE and to map pay runs to the correct EMP201 month.
