P45 question

aries_163

Hi all, just have a question about P45.
I will ask the payroll department but no one is available until Monday.

I left my previous job on 28th April, and it was confirmed that my last pay day would be 30th April.
Was told I’d be processed as an April leaver and p45 would be in the post soon.
I chased the payroll team towards the end of May as I still hadn’t received it.
They looked into it and realised they had made a mistake and I hadn’t been taken off the payroll and the May payroll had already been processed and couldn’t be stopped. So I received my full previous salary on 31st May.
They asked that I return the payment which I did and then they sent out my p45 which I’ve just received today.
In section 7, it states the month number is 2 (May) for the last entry in payroll, and my total pay to date is £4150 (equates to 2 months pay). But it does state my leaving date correctly in section 4 (28/04/19).
So based on the above, the p45 states I have received 2 months pay, when in fact I returned the 2nd months overpayment before the p45 was issued.
Does anyone one more knowledgeable on tax and HMRC know if this will create any problems if I hand this version of P45 to my new employer?
Or should my previous employer issue an amended P45 before I hand it to my new employer?
Obviously I just don’t want to end up paying more tax than I should because of this error, but if it doesn’t matter than I will hand in the current form.

General_Grant

Does the actual amount of £4150 equal what you have been paid, that is that it is what you were paid up to the date of leaving and that the over-payment in May is not reflected in the figures?

As long as the £4150 is your gross pay actually due then it is fine to give it to your new employer. The date doesn't really matter.

And, just checking, is your tax code not annotated with W1/M1?

aries_163

No the £4150 includes the amount I was over paid. That figure equates to April and mays pay, but I was only entitled to April’s pay.
I have paid back May’s pay on their request.
Tax code on the p45 is 1250L

Dazed_and_confused

Yes it will cause problems.

I think you are best not giving the P45 to your new employer (you are not required to give them a P45).

If the new employee uses the current P45 you will pay more tax than is necessary the first time they pay you after using the P45.

You must make sure that you complete a new starter declaration form with the new employer so they can put you on the emergency tax code (1250L on a non-cumulative basis).

If that already happened in May your tax will probably be correct (unless very high or low wage in comparison to the old company).

Smodlet

As Dazed and confused says, your P45 is wrong; your old employer needs to issue a corrected one if you are to avoid paying emergency tax until your new employer can sort it out. Worst case scenario, it will all come out in the wash and, eventually, your tax code will be applied correctly but it could take months. The difference will not be huge but it will be an inconvenience as you should not have to pay more tax due to someone else's error.

May I wish you the best of luck in your new job?

aries_163

Thanks for your advice. That’s what I thought. I’ve emailed my previous company so hopefully they can sort it out soon.
I need to provide proof of my NI number to my new employer still so was going to use the P45 for that too.
I have had my first payday with my new employer on 24th May (no gap between finishing and starting, commenced 29th April), and the tax seemed to be correct but no student loan payment was taken so my take home was larger than I expected. The P45 doc I have states about my student loan so I assume once I finally give it to them that payment to it will restart?
Does anyone know if I will have to repay the missed month (or 2 if June’s pay is the same) to the student loan company once it’s all sorted? I am happy to as I owe it, but will it all be taken out of the first months ‘correct’ pay as a lump sum, does anyone know?

It’s really annoying that this has happened, as I was in touch with the payroll dept at my old job the week after I left to ask when I would get the P45 and ask if they could send a copy of my last payslip for my NI confirmation. They weren’t too quick to reply but as soon as they realised they had overpaid me they were straight to contact and get their money back!

Smodlet

aries_163 wrote: »

Thanks for your advice. That’s what I thought. I’ve emailed my previous company so hopefully they can sort it out soon.
I need to provide proof of my NI number to my new employer still so was going to use the P45 for that too.
I have had my first payday with my new employer on 24th May (no gap between finishing and starting, commenced 29th April), and the tax seemed to be correct but no student loan payment was taken so my take home was larger than I expected. The P45 doc I have states about my student loan so I assume once I finally give it to them that payment to it will restart?
Does anyone know if I will have to repay the missed month (or 2 if June’s pay is the same) to the student loan company once it’s all sorted? I am happy to as I owe it, but will it all be taken out of the first months ‘correct’ pay as a lump sum, does anyone know?

It’s really annoying that this has happened, as I was in touch with the payroll dept at my old job the week after I left to ask when I would get the P45 and ask if they could send a copy of my last payslip for my NI confirmation. They weren’t too quick to reply but as soon as they realised they had overpaid me they were straight to contact and get their money back!

What do you expect? Payroll employees work for the employer, not for you.

How do you spell "assume"? @ss u me. Never assume, always confirm, especially when it comes to money. Never leave it to anyone else to sort out your debts, always do it yourself and follow it up in writing, be that an entry on your bank statement, an email or a letter.

It takes only one missed payment of anything, a student loan, an energy/mobile/water bill, a credit/store card repayment, whatever to screw up your credit record: Is it really worth it for the few minutes it takes to take control?

[Deleted User]

If you have a online personal tax account set up I believe you can download a confirmation letter on their as proof of NI number.

If not you could use a previous p60, payslip, letter regarding a benefit or pension.

jobbingmusician

Or you could just use the P45 you have, with a stern attachment saying the figures are incorrect and you will give them the correct figures once your ex employer has sorted it out........

Dazed_and_confused

Or you could just use the P45 you have, with a stern attachment saying the figures are incorrect and you will give them the correct figures once your ex employer has sorted it out........

Has a good chance of ending in tears!

Savvy_Sue

jobbingmusician wrote: »

Or you could just use the P45 you have, with a stern attachment saying the figures are incorrect and you will give them the correct figures once your ex employer has sorted it out........

Dazed_and_confused wrote: »

Has a good chance of ending in tears!

You could perhaps use the P45 for proof of NINo, but ask them NOT to use it as a P45. However I'd find that very strange.

OP, I think there is often a lag with student loans, but did your Starter Declaration (used to be a P46) not ask that question?