Redundancy payment not being included on final payslip

barry58

My wife is currently working through her redundancy notice. It's likely that her employer (a small family business with 3 employees) will attempt to pay the redundancy payment direct to my wife rather than through the payroll system as I would expect. I can't yet find any trustworthy advice on-line (e.g. gov.co.uk, ACAS, Citizens Advice etc.) that clearly states that a redundancy payment must be handled via payroll and therefore included on a payslip and P45.

Does anyone have any views as to whether a direct payment is allowed/legal?

Many thanks.

marlot

My understanding is that if the redundancy is less than £30k it wouldn't appear on payslips or P45.

chrisbur

The tax free part of redundancy (ie up to 30k ) must not appear on the P45.  The P45 only includes taxable earnings, and including the tax free part would show as an under-deduction of tax when it went to the next employer.

Dazed_and_C0nfused

marlot said:

My understanding is that if the redundancy is less than £30k it wouldn't appear on payslips or P45.

I don't think it would be a problem with it being on a payslip as a non taxable payment.

Other things are so can't see this being any different.

But it shouldn't be on a P45 if it's not taxable.

TripleH

I would try and get written (email) confirmation of the amount of it doesn't appear on the payslip and keep for your own peace of mind though.