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Help with P45
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Ok, I've been online and checked the bank account (why I didn't think of this earlier doh!). Here is what I have come up with.
The working weeks for the tax period in question is 8 weeks. However, I can see how they would come to 12 weeks if they count up to the end of the month.
He was paid every 4 weeks on a Thursday around the 16th of the month.
I have worked from March to June 2013 to provide the figures:
Working Weeks
Sun 17 March - Sat 23 March
Sun 24 March - Sat 30 March
Sun 31 March - Sat 6 April
New Tax Year Starts
Sun 7 April - Sat 13 April
Paydate for these weeks: Thursday 18th April @ £1096.40
Working Weeks
Sun 14 April - Sat 20 April
Sun 21 April - Sat 27 April
Sun 28 April - Sat 4 May
Sun 5 May - Sat 11 May
Paydate for these weeks: Thursday 16 May @ £1075.40
Working Weeks
Sun 12 May - Sat 18 May
Sun 19 May - Sat 25 May
Sun 26 May - Sat 1 June (leaving date)
Paydate for these weeks: Thursday 13 June
This payment included his redundancy pay as well as his 4 weekly salary.
However, we can see that he worked one new tax week in Aprils payment and 3 weeks in Junes payment, so if we assume that as a complete 4 weeks, and use the full figure from Aprils payment of £1096.40, then add this to Mays payment of £1075.40, the total for the 8 weeks worked would be £2171.80. That means there is £3126.93 not accounted for if we are to believe the 'Pay to Date' figure on the P45 of £5298.73. (Hope this all make sense).
As mentioned, there would have been very little holiday pay due either.
Hope this helps and thanks :-)
When the money is earned does not matter, it is when it is paid that decides which tax year it falls in. The payment made on 18/4 will all be included in the 13/14 tax year so for 18/4 and 16/5 we have an estimated gross of £2556. This leaves the payment of 13/6 have you a net for this? Also would need the redundancy figure if it is included.0 -
Hi
The payment on the 13 June was £13084.78. This would have included his 3 weeks work of £823.
I did just ask my husband if he can remember the figures in his redundancy letter and he says he thinks he remembers the redundancy figure being just under £10K, so the remaining say £3084 or so is not accounted for. We know £823 of that is his final wage, so this leaves approx £2261 unaccounted for. If it was a form of severance pay, I thought severance pay wasn't taxable?0 -
Hi
The payment on the 13 June was £13084.78. This would have included his 3 weeks work of £823.
I did just ask my husband if he can remember the figures in his redundancy letter and he says he thinks he remembers the redundancy figure being just under £10K, so the remaining say £3084 or so is not accounted for. We know £823 of that is his final wage, so this leaves approx £2261 unaccounted for. If it was a form of severance pay, I thought severance pay wasn't taxable?
A net pay of £2261 would be aprox £2751.00 gross pay, which if we add to the figures for 18/4 and 16/5 (£2556) we get £5307 as an approximate gross taxable pay figure; which is very close to the P45 figure of £5298. This would suggest to me that the P45 is correct, the week 12 is correct for the leaving date for an employee on four weekly pay, the tax deducted shown on the P45 is correct for the gross shown and the net pay received is within a few pounds of the estimated net pay that the taxable gross would give.
Whether the severance pay should have been taxed or not I cannot say without more details but it is certainly not true to say all severance pay is not taxable. For example any pay in lieu of notice which is contractually due or is usually paid is taxable.
As it stands I do not think that you can query the P45 though you may be able to query whether some of the money on the P45 should have been on it, if it was a non-taxable payment. To do this you are first going to have to find out exact details of what this payment covered and I think that the only way to get that now is to contact the old employer. Once you have the details you can seek advice on whether they are taxable or non-taxable payments.
If you want to see a bit more detail about payments on leaving the following link has some information on pages 74 to 76 section headed Payments you make when an employee
stops working for you
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/300136/CWG2_2014.pdf0 -
Two possibilties to consider.
the working weeks you are using are not the ones associated with the pay date so there are some weeks due on termination
There could be a PILON payment in there.
How many years had he worked there?
Did he work his full notice?
what was the redundancy rate if he can remember.0 -
Hmm yes, it is now all sounding like it could be correct.
Like you say, I think the next step is to write to the employer to get a copy of the breakdown of the redundancy payments, as this is the only way for sure we can tell what should be taxable.
Chris, thanks for this, it has been most helpful. When I get the details I will post back to see if you can shed some more light.
GetMoreForLess: Thanks for your input, but I think Chris has shed quite a bit of light on the situation, so my next step is to contact the employer.
FYI, my husband worked for 9 years and worked right up to the 31 May 2013.
Thanks again :-)0
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