When should a P45 be issued

Paul_Herring

Mikeyorks wrote: »

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.

I was in a pub for those last posts - not too far from the Rusty Fairy

Right - DWP P45: "Totals to date in this tax year" does not include my pay from my last jobs - just the 3 weeks JSA. Seems consistent with what you said.

However if the P45 is supposed to supply details from previous employment, how am I supposed to supply my last job's P45 if DWP have already swiped it from me? (Not too interested in whether this can be answered; I'll be filling out a self assessment anyway.)

I appear to have hijacked this thread - sorry

benny5

Mikeyorks wrote: »

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.

Thanks Mikeyorks. I need to have a 'drains up' with HR tomorrow. From what I have discovered on this forum clearly something is amiss. Leaving aside the issue of 'pay in arrears' my redundancy payment is missing. And yes it has been agreed with HMRC that the first £30k will be tax free, leaving a large tax bill on the remainder which is absent from the issued P45.

Hoddie_2

Right - DWP P45: "Totals to date in this tax year" does not include my pay from my last jobs - just the 3 weeks JSA. Seems consistent with what you said.

This is common and generally means DWP are at fault. If you handed a P45 in to them then they should use the figures on there and carry them forward to the P45U that they issue when your claim stops. If you handed more than one P45 to them, or didn't give them one, then it's correct that the P45U they issue won't show previous details.

However if the P45 is supposed to supply details from previous employment, how am I supposed to supply my last job's P45 if DWP have already swiped it from me?

Hand the P45U to your new employer. HMRC will tell them later your cumulative pay/tax-to-date details.

Further to your redundancy query, your employer must operate code BR on any taxable payments they make after a P45 has been issued. If you're a higher rate taxpayer, this won't collect enough tax.

Paul_Herring

Hoddie wrote: »

If you handed more than one P45 to them, or didn't give them one, then it's correct that the P45U they issue won't show previous details.

This is what confuses me (sorry - hijacking thread again.) I offered two P45's. DWP only wanted one of them. Which I gave them (the full time employment one.) DWP P45 still didn't include previous employment.

tigtag02

Paul_Herring wrote: »

This is what confuses me (sorry - hijacking thread again.) I offered two P45's. DWP only wanted one of them. Which I gave them (the full time employment one.) DWP P45 still didn't include previous employment.

But it doesnt matter because your tax code will be on a cumulative basis.

If you then use the P45 for a new employer the figures wont be used but a total sent to them (P6) from HMRC.

Paul_Herring

tigtag02 wrote: »

But it doesnt matter because your tax code will be on a cumulative basis.

Only if Week 1 or Month 1 are used. (Which wasn't the case with JSA incidentally!)

And even then it doesn't work.

The first Self Assesment I filled in while at my last (main) job (Month 1) I was owed £600 because they'd taken too much tax off me. And at the time that was the only job I had (I didn't have the 2nd job then.) The 2nd year I was owed £400. No, I didn't query payroll about it, with hindsight I really should have.

I really must apologise to Benny for this hijack.... Sorry :embarasse

tigtag02

JSA should ALWAYS be using a non cumulative code as they dont operate PAYE!!

PS: I meant non-cumulative up there ^^^^

Hoddie_2

JSA should ALWAYS be using a non cumulative code

That's not strictly true. They will never deduct tax because as you rightly say they don't operate PAYE, but they should accept and act on a P45 if provided, and this includes carrying forward previous pay/tax details and a cumulative code if possible.

There are special cases where they may legitimately not do this, for instance if the tax-free allowances are not enough to cover the JSA paid - here they should still carry the code forward but change it from cumulative to week1/month1, and let HMRC worry about any underpayment of tax later. Plenty of other exceptions too but I imagine this is the most common.

Only if they follow the correct P45 procedure will the claimant receive any tax repayment once their claim finishes, otherwise it's left to HMRC to sort it out further down the line.

I suspect in the above case, as the claim only lasted 3 weeks, they probably didn't process the P45 prior to issuing the P45U.

tigtag02

MY OH just received his P45 from JSA.

The havent carried forward his figures from his last employers P45.

Nor have they refunded the tax owed. They are obviously, as you say, leaving that one up to HMRC :rolleyes: In another 3 months :mad::mad:!!!