When should a P45 be issued

benny5

I am due to leave my present employer on the 31st Dec. I have just received a P45 detailing my earnings and tax to the end of Dec. However, as I am paid in arrears and have redundancy payments outstanding this is not my final earnings position.

Never having been in this position I am unfamiliar with the sequence of events.

Please can anyone assist.

mosambi

Ideally your employer should have given you your P45 after your last date of employment. Since you have already been issued with the P45 any payments made hereafter will have to be recored by your employer in form P11.
All the best!

Frugaldom

Hi Benny5, your old employer will still be responsible for sending you a P60 at the end of the tax year, which should be up to date as far as tax etc is concerned. I'm not too sure, but I don't think the redundancy payment gets included in the salary part, but best check this out. The Inland Revenue site should have the information at www.hmrc.gov.uk/

Paul_Herring

In my experience P45s are generally issued at most a week after the last payment/payslip; my last 4 P45s were last company merging twice, leaving last company and DWP for 3 weeks JSA - all were received shortly after last payment.

P45s are, from what I can tell, generally for the next employer/DWP for your tax code, not for what you've earned this tax year. My P45 from DWP had none of my earnings from my last job on it.

Mikeyorks

benny5 wrote: »

I am due to leave my present employer on the 31st Dec. I have just received a P45 detailing my earnings and tax to the end of Dec. However, as I am paid in arrears and have redundancy payments outstanding this is not my final earnings position.

Am I missing something that this is related to Pensions (the forum it's posted in)? Assuming not and that you're going on to further employment :

Are you sure the P45 doesn't include all monies due to 31/12. Wages sections work in advance and if you're on a standard rate - it's easily calculated. The redundancy payment may or may not be taxable - depends on the type of payment (lieu of notice etc) .. look at the HMRC website for that.

If the P45 is wrong and they issue a further payslip after 31/12? Then contact HMRC (the one on the P45) and advise them - having issued a P45 the employer is not allowed to correct it or re-issue it. And HMRC will have to advise any new employer / pension provider etc of the correct figure to use.If it's right - then no problem?

nykmedia wrote:

Hi Benny5, your old employer will still be responsible for sending you a P60 at the end of the tax year, which should be up to date as far as tax etc is concerned.

Sorry - but that's wrong. The P60 is issued only by someone whose employment you're in at 5th Apr. Quote below from HMRC

You must, by 31 May, give each of your employees an end of year certificate (P60) if they were still on your payroll on 5 April.

Mikeyorks

Paul_Herring wrote: »

. My P45 from DWP had none of my earnings from my last job on it.

That's exceptional, Paul (and part of why I'm querying this is in the Pension forum). Normally a P45 is to provide continuity of PAYE / SLC deductions and has gross pay / tax deducted shown - as well as the tax code.

But it is relatively unusual to issue so far in advance - unless (last full week to Christmas) the wages sections are necessarily bringing everything well forward.

Paul_Herring

Mikeyorks wrote: »

That's exceptional, Paul (and part of why I'm querying this is in the Pension forum). Normally a P45 is to provide continuity of PAYE / SLC deductions and has gross pay / tax deducted shown - as well as the tax code.

But it is relatively unusual to issue so far in advance - unless (last full week to Christmas) the wages sections are necessarily bringing everything well forward.

I'll try to remember to double check when I get back home, but I was fairly sure the DWP P45 (for 3 weeks JSA - to the end of Nov this year) did not include my pay from my previous job (to end of Oct this year,) just the JSA I received.

Previous jobs (I forgot my part time job in my previous list, sorry) were on a Week 1 and Month 1 basis - I'd paid all tax 'due.'

And DWP only wanted my last (main) job's P45 - they didn't want the part time job's P45 (which ended around the same time As the main job. I moved to the other end of the country which is why I left the two jobs.)

I don't think 'pay/tax to date' is the (main) reason for the P45's, otherwise the DWP would have taken both my last P45's - they related to the same tax year (i.e. the current one.) I think it's more documentation of your tax code without having to issue a P2.

Mikeyorks

Paul_Herring wrote: »

I don't think 'pay/tax to date' is the (main) reason for the P45's, otherwise the DWP would have taken both my last P45's - they related to the same tax year (i.e. the current one.) I think it's more documentation of your tax code without having to issue a P2.

Honestly Paul - for mainstream P45s, between employers - it is. In order to provide unbroken continuity for PAYE deductions ... and SLC. DWP operate to different criteria on allowances - partially because not everyone wants to pass on a P45 from them.

When you do 'get home' - my regards to the Angel and Team Valley! Spent many a happy hour at the BT payment processing centre there.

sdooley

have you negotiated your pay-off with your employer? Sometimes if it's part of a settlement settlement it can be more tax-efficient to pay the after the p45 has been issued.

benny5

Thanks for all the comments.

I though this process was going to be simple and straightforward. I get paid monthly (in arrears) always pretty much the same amount, and am scheduled to finish on the 31st December. I have received my December pay, normal amount, this leaves my final payments of my pay arrears plus redundancy. The P45 does not include any of the latter which is considerable.

My understanding was that the P45 represented the final position on leaving your last employer. The question really is; Is it normal for company reissue an amended P45.

Mikeyorks

Benny - if you're paid monthly (in arrears), then the pay to 31/12 (if that's your final day) would normally reflect all the pay you're entitled to. viz you work a month ..... and then get paid for it i.e 'in arrears'.


On the redundancy - under most (but not all) circumstances the first £30k are tax free. But you need to check with your employer the terms of the redundancy - to make sure it's not taxable.

As I said earlier - a P45 can't be corrected or re-issued. If they do issue a further payslip - you need to contact HMRC - in particular if you're going to be working again this tax year.