Redundancy, tax and new job

purpleparrotuk

Hello.

I was made redundant on 24th April this year. My company have me 9 weeks notice and 9 weeks redundancy. The weird thing is that they said I stopped working for them on this date but they will pay me the 9 weeks notice until the middle of June. They also said that if I find another job before June I will not lose the redundancy money or notice money.

I can't understand how I can technically have left the company the middle of April but they are still paying my pension and have me on the payroll.

The problem now is I started anew job this week and received my. P45 from previous company and it said my leaving date was 14th may! I cannot understand what is happening here and i fear I going to be taxed like crazy now because it appears I have 2 jobs.

I can't speak to payroll who did the p45 because they are on leave until second week in June.

Can someone please advise?

mcfisco

If they've paid you the 9 weeks notice upfront, it'll be 'payment in lieu of notice' rather than notice

anamenottaken

purpleparrotuk wrote: »

Hello.

I was made redundant on 24th April this year. My company have me 9 weeks notice and 9 weeks redundancy. The weird thing is that they said I stopped working for them on this date but they will pay me the 9 weeks notice until the middle of June. They also said that if I find another job before June I will not lose the redundancy money or notice money. They are paying for the notice but have terminated your employment before your full notice period has expired. Presumably you have worked there for over 9 years (but not yet 10) and therefore you were entitled to nine weeks' notice but they did not want you to work for all of that time.

I can't understand how I can technically have left the company the middle of April but they are still paying my pension and have me on the payroll. Sounds as though some of it (from 24 April to 14 May) was "garden leave" and the rest of your notice payment is in lieu of actual notice.

The problem now is I started anew job this week and received my. P45 from previous company and it said my leaving date was 14th may! Again, I presume they knew you were starting work and were helping you get your tax affairs sorted with the new employer by issuing the P45. I cannot understand what is happening here and i fear I going to be taxed like crazy now because it appears I have 2 jobs. You will not pay more tax than if you earned the same amount in just one employment. In your final pay, have you received all of the notice pay to which you were entitled (ie nine weeks less what they have already paid you)?

I can't speak to payroll who did the p45 because they are on leave until second week in June.

Can someone please advise?

...................

Debt_Free_Chick

Firstly, you won't get taxed for having 2 jobs as the P45 has gone to HMRC and that shows you no longer work for employer 1.

It sounds as though they gave you notice on 24 April, so that you would get paid for the next 9 weeks, then leave with a further 9 weeks pay.

What they've done sounds right, if they've continued to pay you since 24 April.

purpleparrotuk

Thanks for all the replies. My final payment will be the end of this month. I would have got all the money last month but I had just missed the payroll deadline. This will be my redundancy money and 2 months notice period. Since a week (24-30 April) was paid in last months wages. As far as I understand it this is payment in lieu because I was going to get it in one bulk sum last month if timing had allowed.

I still don't understand how they are still paying my pension and small healthcare plan until 23 June if my employment ceased on the 24th April. But I have read that they can do this for a time period after employment terminates at their discretion. I would have expected the P45 to say the 24th April. I am totally confused with it all.

getmore4less

Does the P45 include all the payments due

if not there will be a discrepancy.

anamenottaken

getmore4less wrote: »

Does the P45 include all the payments due

if not there will be a discrepancy.

Depends.

If they were paying garden leave that would be taxed. If they have issued P45 but not included PILON for the remainder of the notice period, the future payments could be compensation for not getting proper notice and therefore potentially tax- and NI-free. May be paid as a nett amount rather than gross.



Notice "if", "could", "potentially", "may".

purpleparrotuk

Just checked. P45 has my wages from April to middle of June. So that's right