Redundancy Pay Slip

Liz12345

My husband is being made redundant from 1st April. Will he get a normal pay and pay slip on 28th March then a separate redundancy payment or will it all be included on his March payslip?

MEM62

We won't know. He will have to ask his employer.

badmemory

It is also unlikely to matter tax wise as 1st April is still in the same tax year as 31st March. If they would do it on 6th april that would be a different matter. Both payslips will be month 12 so beware of possibily underpaying tax on the 1st april one. You don't want a bill from HMRC appearing much later in the year when the money has already been spent.

Comms69

In my only experience it was all included on the last pay run.


However that is not to say that they couldn't include it for next month instead - redundancy payments are (for the most part) tax free

PierremontQuaker03

I am being made redundant 31st March, I am receiving my payment in lieu of notice, holiday pay etc etc at the end of March and then my P45.
At the end of April I am receiving my redundancy payment.

Comms69

PierremontQuaker03 wrote: »

I am being made redundant 31st March, I am receiving my payment in lieu of notice, holiday pay etc etc at the end of March and then my P45.
At the end of April I am receiving my redundancy payment.

Thanks for sharing

PierremontQuaker03

Comms69 wrote: »

Thanks for sharing

No problem, I think the reason why my company is doing this - is that if they paid me my redundancy in March as well as my other pay they would have to do two payrolls. As my (and your husbands) redundancy is not subject to tax (up to 30k) therefore they have to change your tax code so that no tax is deducted from your redundancy payment.
Therefore I should get my P45 with my March payslip - but get my redundancy payment in April when they do their next payroll run.

Comms69

PierremontQuaker03 wrote: »

No problem, I think the reason why my company is doing this - is that if they paid me my redundancy in March as well as my other pay they would have to do two payrolls. As my (and your husbands) - not the OP, and don't have a husband redundancy is not subject to tax (up to 30k) therefore they have to change your tax code so that no tax is deducted from your redundancy payment. - that is incorrect. there is no need to change the tax code. the payment is marked differently. same as expenses.
Therefore I should get my P45 with my March payslip - but get my redundancy payment in April when they do their next payroll run.

But fundamentally both methods are legal

JCS1

PierremontQuaker03 wrote: »

No problem, I think the reason why my company is doing this - is that if they paid me my redundancy in March as well as my other pay they would have to do two payrolls. As my (and your husbands) redundancy is not subject to tax (up to 30k) therefore they have to change your tax code so that no tax is deducted from your redundancy payment.
Therefore I should get my P45 with my March payslip - but get my redundancy payment in April when they do their next payroll run.

Not necessarily. You just tell the payroll software that the item you're using, i.e. "redundancy pay" is not subject to tax.