Redundancy - am I being conned or am I just being cynical?

Fweckles

Hi guys!
I have hunted high and low for an answer to this but can not find an answer anywhere, so am hoping someone out there will know the answer.

I am about to be made redundant, via a compromise agreement. The agreement has been approved and signed by all three parties, including my solicitor. My job finishes this month. My payroll department has agreed that they will do my normal payroll run on 26th August, but that I cannot be paid my redundancy package until the day after my last day (last day is 30th - redundancy pay will be the 31st) , they say this is for tax reasons and to prevent me having to pay tax on the payment (as apparently I have to have physically left the job before they can pay it). Is this correct? I wanted to check in case I am having the wool pulled over my eyes as once I have left the company will be shortly-thereafter entering into voluntary redundancy and an Insolvency Practitioner instructed. I just want to make sure that I receive what is due to me before any IP becomes involved. I would be most grateful for any advice... Many thanks Fweckles

getmore4less

They can pay it anytime they want.

I got mine paid early in normal payroll run, if it is itemiszed coorectly I can't see any problems.

Also any taxable elements get included in the p45 which can make life easier for a P50,JSA or new job

payment terms should have been in the CA.

Fweckles

Thank you...

That's what I thought. The compromise agreement just states payment to be made anytime before last date in office. But my payroll dept firm seem to be trying to make things as awkward as possible and seem to be implying that if they pay us early we may do the off!! Which, considering I have worked for the company for over 10 years I take huge-offense with! My actual boss has indicated that they would like me to receiving my settlement asap, but the payroll firm claim that they have to protect his interests plus the my tax interests!! :think:

getmore4less

Can your boss just bypass the payroll company making the payment direct letting you deal with the tax on the settlement if over £30k

I believe the company should tax it but if they are liquidating it probably won't make any difference.

then pay roll just pay the normal pay and issue the p45.

I wonder if the payroll company are upto something thinking they won't get paid or are owed money.

My old company used a payroll company and they paid out what they were told to on the date they were told.

Fweckles

Payroll company are the accountants and they have been paid up-to-date so no fear there... I just feel that they are trying to put obstacles in the way of paying me out... When I confronted them they implied that they have to pay me after I have left the office or I will be taxed on my redundancy pay, whereas at present because it is under 30k I am not being taxed.... Trouble is I cannot find this day later/after left building tax reasoning anywhere on the web, and being as some people, including you have received their redundancy prior to the company closing why are they treating me any different... just suspicious...

Smi1er

getmore4less wrote: »

They can pay it anytime they want.

The redundancy payment has to be paid to you within 14 days of your last paid date of employment. So making you wait only one day is actually good of them.

getmore4less

Fweckles wrote: »

Payroll company are the accountants and they have been paid up-to-date so no fear there... I just feel that they are trying to put obstacles in the way of paying me out... When I confronted them they implied that they have to pay me after I have left the office or I will be taxed on my redundancy pay, whereas at present because it is under 30k I am not being taxed.... Trouble is I cannot find this day later/after left building tax reasoning anywhere on the web, and being as some people, including you have received their redundancy prior to the company closing why are they treating me any different... just suspicious...

Because it does not exsit, just about everything to do with tax is covered by the HMRC manual so if it is anywhere thats where it needs to be.

Ask them the HMRC manual reference for this rule I would be interested in this, you could also go and see them(if convenient and when they say phone up HMRC and ask.