Obtaining updated P45 after mistakes made in final payments

Mistermeaner

Hi
I left my employer of 8 years effective end of April 2020 and joined a new company 1st May.
My 'final' pay from my prior employer was received on 25th April and a P45 issued shortly thereafter detailing this amount....
However prior employer made a couple of mistakes in my final pay; missing a taxable payment of £500 and a non-taxable amount (ex-gratia) of £13500
They have since paid me these amount on 18th May (and deducted tax from the £500) - I have requested and they have so far declined to provide either a payslip for these amounts and also an updated P45

While not massive in the scheme of things from a tax perspective this now means that my current employer has incorrect tax info from me and also my online tax record is incorrect
My question is ; is my prior employer obliged to provide me with both a payslip for may and a revised P45?


Somewhat unrelated but in addition for these mistakes in April my employer also (prior to paying me) issued a payslip which was also incorrect; for whatever reason they sent the info from the incorrect payslip to HMRC so my tax records is incorrect on 2 counts now... does this matter or can I just tidy all this up at the end of the 2020-21 tax year through self assessment (which I do anyway)

Pennywise

Once a P45 has been issued it can't be corrected.  What your ex-employer should do is send a P45 for the £500 only as the procedure is to put you back on the payroll for any late payments such as this and create a new record (like a different employment).  There's no requirement for a P45 covering tax free ex-gratia payments.

chrisbur

Pennywise said:

Once a P45 has been issued it can't be corrected.  What your ex-employer should do is send a P45 for the £500 only as the procedure is to put you back on the payroll for any late payments such as this and create a new record (like a different employment).  There's no requirement for a P45 covering tax free ex-gratia payments.

The following is from the CWG2 Employer further guide to PAYE and NI

Instructions on details to give the employee and not to issue another P45 I have put in bold

https://www.gov.uk/government/publications/cwg2-further-guide-to-paye-and-national-insurance-contributions/2020-to-2021employer-further-guide-to-paye-and-national-insurance-contributions#para114

"If you have already given an employee a form P45 you should deduct PAYE using code 0T (non-cumulatively on a week 1 or month 1 basis) using the normal pay period for the employee (for example, monthly or weekly), at the time you make the payment. This payment should be submitted on an FPS.

Payments in connection with employment related securities, including cash payments arising from those securities, made to an employee after leaving should also be taxed using code 0T for England and Northern Ireland, S0T for Scotland and C0T for Wales (week 1 or month 1 basis non-cumulatively).

In such cases, you should provide the employee with documentary confirmation of the payment (for example, by letter, payslip or other printed or printable document) giving the following details:

• the date of the payments
• the taxable amount of each payment
• the amount of PAYE tax deducted from each payment
• confirmation that the payment is a post-leaving payment

Include the details, set the ‘Payment after leaving’ indicator and show the original date of leaving on the FPS when you make the payment. You must not give the employee another form P45."