P45 & Redundancy
Syd_Collins
Posts: 3 Newbie
Hello there! Wonder if anyone can help!
I was made redundant with my leaving date being the 31st March 2017 (end of 2016/17 tax year).
My redundancy package had all the relevant tax deductions although was paid on the 15th April 2017.
My P45 confirms my leaving date of 31st March 2017, yet has my taxable redundancy amount shown on section 7, "Total Pay To Date", with the relevant "Total tax to date". Both applying to "Month Number 1".
I have now got another job although I am being heavily taxed due to the above.
Should the "Total Pay to Date" be shown even if it is a redundancy payment applicable to the 31st March 17 (& already taxed appropriately)?
Many thanks for your thoughts
I was made redundant with my leaving date being the 31st March 2017 (end of 2016/17 tax year).
My redundancy package had all the relevant tax deductions although was paid on the 15th April 2017.
My P45 confirms my leaving date of 31st March 2017, yet has my taxable redundancy amount shown on section 7, "Total Pay To Date", with the relevant "Total tax to date". Both applying to "Month Number 1".
I have now got another job although I am being heavily taxed due to the above.
Should the "Total Pay to Date" be shown even if it is a redundancy payment applicable to the 31st March 17 (& already taxed appropriately)?
Many thanks for your thoughts
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Comments
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Syd_Collins wrote: »Hello there! Wonder if anyone can help!
I was made redundant with my leaving date being the 31st March 2017 (end of 2016/17 tax year).
My redundancy package had all the relevant tax deductions although was paid on the 15th April 2017...
Paid on the 15th April 2017, therefore taxable in the current 2017-18 tax year.Syd_Collins wrote: »...My P45 confirms my leaving date of 31st March 2017, yet has my taxable redundancy amount shown on section 7, "Total Pay To Date", with the relevant "Total tax to date". Both applying to "Month Number 1"....
You were being paid in month 1 of 2017-18, so that would be right. It's quite common for employees to leave on a certain date, and be paid later.Syd_Collins wrote: »....I have now got another job although I am being heavily taxed due to the above.
Should the "Total Pay to Date" be shown even if it is a redundancy payment applicable to the 31st March 17 (& already taxed appropriately)?
Many thanks for your thoughts
PAYE is cumulative. Your taxable redundancy payment included in your P45 will (as you have found) 'bump up' your tax deductions, but the effect will diminsh over the tax year.0 -
If the redundancy was taxed properly in month one that usually gets over taxed and when you start work/JSA you start getting that back.
What was the redundancy and tax paid?0
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