Redundancy payment - what year?

Redundancy payment - what year?

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Individual made redundant March 2008 and P45 issued with relevant termination date. At date of leaving dispute re holiday and redundancy pay due was unresolved. At end of April 2008 further payslip received with payment of holiday pay less tax and redundancy payment untaxed. P45 issued for additional sums with date of leaving noted as March 2008 and date of issue noted in Employers details box as 30 April 2008. Does the additional earnings amount and tax suffered go on the 2007/08 Return per date of termination of employment, or on 08/09 Return due to date of payment? Due to other factors 07/08 gives higher rate tax liabilities whereas 08/09 will be mainly basic rate so creates a differential in tax charge.
David Chalmers

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By kabini
05th Oct 2008 15:19

The employer has not followed the guidelines
The second P45 should not have been issued - hence the confusion. You should therefore ignore it (or even better put it in the bin).

The additional sums were paid in 2008/09 and should therefore be included in the 2008/09 tax return.

The employer is required to include these payments in a new P14 for 2008/09 and submit it to HMRC at the end of the tax year.

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