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Redundancy and tax relief

An employee has been given 10 weeks notice of redundancy. The accounting year end is 31 January and the payment date falls into the new accounts year.

When should the payment be recognised in the accounts?

Thank you

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Provision should be made

If there is a present obligation as a result of a past event and the amount can be estimated with reasonable certainty.

Your post suggests that the criteria have been met.

I'm not sure why you'd give someone 10 weeks notice though.  Hopefully they don't do anything that means they can do any damage?

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17th Jan 2013 13:20

10 weeks notice

George

Perhaps it is because it is the legal requirement after 10 complete years of service?

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Euan

I meant as opposed to just paying them off.

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17th Jan 2013 14:18

now now chaps ;-)

so in the accounts to 31/01/2013 then not 2014

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