« Back to Glossary Index

The week 1 / month 1 basis, usually used as an emergency tax code for new starters, gives a proportion of any allowances and rates of tax for each pay period. However, it differs from the cumulative basis in that it ignores previous pay and tax. In effect, all payments are taxed as though it was week 1 or month 1 of the tax year.

« Back to Glossary Index