P45 doesn't include current month salary

Russyarnold

Hi,

I am asking here for a friend.

He recently changed roles (perm to perm both on monthly salary) last date being 15th and joined new on 18th.

He just received his P45 from old employer through post and it only contains his salary until last month. As he had worked nearly half a month this month, they should be receiving part salary this month as well?

Can someone clarify

1. Is it normal for P45 to not contain current part month salary?

2. Will they be taxed more for this month salary from either of the employers?

His leaving date was correct on the P45 though.

Please help.

Thanks

chrisbur

This does sometimes happen so there is a procedure that the old employer should follow.  Details are here at the bottom of the page....
https://www.gov.uk/employee-leaving

Regarding the tax position they will pay the tax due on their taxable earnings for this tax year.  It sometimes happens that as a result of changing jobs you end up getting two payments in one tax month, this results in you having 13 payments in the tax year so tax does seem a bit high on one of these payments as you have no tax allowance for it.  Apart from this there will be no extra tax because of this late payment though the correct tax might not be taken straight away and an adjustment may be needed later.
Regarding NI there may be a bit of a difference, depending on earnings could go either way. 

Russyarnold

chrisbur said:

This does sometimes happen so there is a procedure that the old employer should follow.  Details are here at the bottom of the page....

Regarding the tax position they will pay the tax due on their taxable earnings for this tax year.  It sometimes happens that as a result of changing jobs you end up getting two payments in one tax month, this results in you having 13 payments in the tax year so tax does seem a bit high on one of these payments as you have no tax allowance for it.  Apart from this there will be no extra tax because of this late payment though the correct tax might not be taken straight away and an adjustment may be needed later.
Regarding NI there may be a bit of a difference, depending on earnings could go either way. 

Does he need to let his old company know that they have a separate procedure to follow?
His old company is a very big company with outsourced HR/payroll and he said he had lot of problems getting simple things resolved in the past.

chrisbur

Russyarnold said:

chrisbur said:

This does sometimes happen so there is a procedure that the old employer should follow.  Details are here at the bottom of the page....

Regarding the tax position they will pay the tax due on their taxable earnings for this tax year.  It sometimes happens that as a result of changing jobs you end up getting two payments in one tax month, this results in you having 13 payments in the tax year so tax does seem a bit high on one of these payments as you have no tax allowance for it.  Apart from this there will be no extra tax because of this late payment though the correct tax might not be taken straight away and an adjustment may be needed later.
Regarding NI there may be a bit of a difference, depending on earnings could go either way. 

Does he need to let his old company know that they have a separate procedure to follow?
His old company is a very big company with outsourced HR/payroll and he said he had lot of problems getting simple things resolved in the past.

They should know what to do, but I cannot deny that there is a chance they do not.  I would be inclined to wait and see what they do.  As far as tax is concerned it will eventually be corrected it just might take a little while.  

Russyarnold

Thanks @chrisbur.

I have passed this thread to my friend 😀.