I'm preparing a client's personal tax return YE 5/4/22 that has:
- P45 from pension lump sum payout (in Oct-21)
- P60 employment income (employment started in Oct-21)
It looks like she has given the pension P45 to the new employer in Oct-21, as the P60 "in previous employment" boxes match the pension P45. What's happend is the pension has had too much tax deducted, and the employment has corrected this by refunding the tax. So overall the tax showing on the P60 is exactly correct, but it just shows a lot in "previous employment" and a refund in "this employment". Is that correct the pension P45 went on as new starter information in the payroll?
Anyway it's now impossbile for me to submit the return as it doesn't pass the validation checks. I get an error effectively saying there can't have been an employment PAYE refund amount, when there is only one employment!
I can get round this by entering the pension in the employment income section rather than the pension section. The tax will be exactly the same, the validation checks then see two employments and the problem goes away, but it's not right!