Redundancy Taxation - please help

amyj606

Hi,

Just postes this in another part of the forum and foiund thus section. I was made redundant last week and was given a full breakdown of my redundancy which is as follows:

Total redundancy pay £476.00

Pay in lieu £1428.00

Holiday Pay £476.00

Total £2380.00

I was given a a redundancy payment of £1999.20 with 20% taken off in tax for holidays and payment in lieu.

However, I was given to choice to take on another role on a trial basis for a month and did so I worked 21 hours a week for 4 weeks at 6.80ph working out at a wage of £571.20. However, I have obeen paid £356.82. I contacted my former employer today and was told I was paid £356.82 because not enough tax was deducted pff the redundancy amount. Can anyone shed some light on this? I am going up to see the accountant to have it explained but can't see how just over £600 has been taken uin tax!

Wouls really appreciated some help with this as I just don't understand why I have had so much stopped in tax

Thaaks

amyj606

Can anyone please help...

getmore4less

Before we look at the tax lets start with the checking the payments.

When were you given notice of termination.
When did you start (exact date) to work out service.
date of birth if around 20's or 40's changes the statutory amounts

Are they paying statutory or enhanced redundancy

when does the holiday year start
howmany days taken

How much are you paid, is it regular or does it vary.

Any oher contractual information relevent.


Might also be worh putting the deails of the payslips
there should be gross and deductions.

amyj606

Hi,

I was given original notice on the the origninal letter on the 2nd June 2011 and was offered a four week trial in an alternate role. My contract states 30 days notice for redundancy but I wasn't given this fromj the date of the original letter it would have been 10 days but I accepted the new role. I started on the 13th October 2008 and my dob is 2.7.83. Im not sure he didnt say what type of redundancy. I have taken 6 days holiday out of 20 and they run from Oct - Oct each year. I was paid 6.80 p/h and it is regular. I don't have the details of the payslip for the trial period i'm just at a loss as to why I have had nearly £600 in tax stopped. If you need any additional info let me know

Cheers

getmore4less

Start 13 Oct 2008 so 2 years service for redundancy.

Age makes that 2 weeks pay capped at £400 pw.

You say they paid PILON which is interesting because I think they can include the trial period in the notice.

Holiday should be prorata on statutory. how many days did they calculate to come to their number?

How many days a week did you work? what hours? what was the normal weekly pay?

PILON, redundancy, holiday don't seem to match up. If PILON is for around 4 weeks I would expect redundancy to be around 1/2 that.


Anyway redundacy is tax free
Pay in lieu £1428.00
Holiday Pay £476.00
trial pay £571.20

TAX £495
There will also be NI to pay thtas why you need the breakdowns

amyj606

Hi

The PILON is for 30 days notice. I had just gone full time a few months previous to this beforehand I was on four days p/w working hours 9 - 5 and my normal weekly pay was £238.00. Well the amount I have had stopped is £595.18 my boss just said tax but I assume he means NI too. I just want to make sure I get what I am owed as I am still trying to get wages that are due from when I first started due to how my boss worked my wages out and its is still not sorted! Im popping to see the accountant tomorrow to see whats what

getmore4less

Not clear but redundacy should be on your current full time wage

PILON still looks a bit unusual, usualy you get it in calender days/weeks/month not paid number of work days

If this is an error it could be costly.


Holiday will be complicated with the change in hours

amyj606

I know my boss didn't even tell me that the tax had been worked out wrong and I had a shock when I logged onto my bank to check my accountant for my last wage whiich was two bloody days late! Hopefully it'll get sorted tomorrow I maybe being a bit optamistic but thanks for all your help its really appreciated :T

LadyMissA

see this

http://www.hmrc.gov.uk/manuals/eimanual/eim12975.htm