Redundancy

Redundancy

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Client got P45 in May 2014.

He was then paid ex gratia pay, and redundancy pay in June, but I didn't get anotherP45 for that.

His payslip shows various elements, many of which I know would be taxable, but some which aren't clear. Tax and Ees NI and Net are shown, but not which elements are taxable. I've worked the ees NI backwards to more or less agree with my taxable figure, but I can't understand how they've arrived at the tax using that taxable figure.

Would he have been given another P45 after the redundancy pay? If not, why not? (Ex employer is huge multinational).

Replies (3)

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By JimH
22nd Jun 2015 20:19

No second P45
Because HMRC says no:

https://www.gov.uk/employee-leaving

Thanks (2)
By Marion Hayes
23rd Jun 2015 09:49

Why would you need to work it back?

If you are completing a tax return you do a second employment page using the payslip total taxable pay box and total tax deducted box.

Tax should have been deducted at 20% unless the payment was big enough to hit the higher rate band on its own.

 

Thanks (1)
By Moonbeam
23rd Jun 2015 12:29

Thank you both

If there was a taxable pay box on the payslip I would have no need to put in this query.

I will set up a dummy payroll to replicate the figures.

Thanks (0)