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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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.