P45 - but another payment due next month?

housebuyer143

I left my work last week due to redundancy and I agreed with my work that they would split my final payment over two months. I thought it was all fine as the payslip reflected the first agreed payment, but I noticed today that they issued my P45, even though they still owe me another  £1000 next month.

I have emailed them because they do not answer the phone and I am waiting back, but any idea where I got from here? Surely the P45 is meant to include all payments they have paid to me and now whatever they have sent to HMRC is incorrect. Should I give this incorrect P45 to my new employer or will my old work have to reissue another?

Dazed_and_C0nfused

Why is your P45 incorrect?

Doesn't it reflect the payments made to the point you left the company?

They will presumably make the final payment as a "payment after leaving".  This is made using tax code 0T and would not involve the issue of a revised P45.

sheramber

You should receive a payslip or letter advising you of the late payment.  HMRC will also be notified about the payment.

housebuyer143

Dazed_and_C0nfused said:

Why is your P45 incorrect?

Doesn't it reflect the payments made to the point you left the company?

They will presumably make the final payment as a "payment after leaving".  This is made using tax code 0T and would not involve the issue of a revised P45.

Why would they use the OT tax code? The whole point of splitting the payments was to pay less tax as I am not a tax payer and I don't pay NI, but this seems like I'm going to end up paying more?? I explained my reasons to them and they never once mentioned to this to me.

Will I get this back in my future payslips from my new employer?

Dazed_and_C0nfused

housebuyer143 said:

Dazed_and_C0nfused said:

Why is your P45 incorrect?

Doesn't it reflect the payments made to the point you left the company?

They will presumably make the final payment as a "payment after leaving".  This is made using tax code 0T and would not involve the issue of a revised P45.

Why would they use the OT tax code? The whole point of splitting the payments was to pay less tax as I am not a tax payer and I don't pay NI, but this seems like I'm going to end up paying more?? I explained my reasons to them and they never once mentioned to this to me.

Will I get this back in my future payslips from my new employer?

Because the 0T is the tax code used for payments after leaving an employment.

Highly unlikely your new employer will refund any additional tax but HMRC will refund any overpaid tax once they review the year in due course.  Or if will come out in the wash from you completing a tax return if you need to complete one for some reason.

housebuyer143

Dazed_and_C0nfused said:

housebuyer143 said:

Dazed_and_C0nfused said:

Why is your P45 incorrect?

Doesn't it reflect the payments made to the point you left the company?

They will presumably make the final payment as a "payment after leaving".  This is made using tax code 0T and would not involve the issue of a revised P45.

Why would they use the OT tax code? The whole point of splitting the payments was to pay less tax as I am not a tax payer and I don't pay NI, but this seems like I'm going to end up paying more?? I explained my reasons to them and they never once mentioned to this to me.

Will I get this back in my future payslips from my new employer?

Because the 0T is the tax code used for payments after leaving an employment.

Highly unlikely your new employer will refund any additional tax but HMRC will refund any overpaid tax once they review the year in due course.  Or if will come out in the wash from you completing a tax return if you need to complete one for some reason.

Thanks, so frustrating that no one offers up all the Information when you ask them about doing this. At least I will get the tax back at some point 👍 

I did a new starter check list (p46) for my new employer, should I now give them the P45 or will that be sufficient for them to set me up correctly? 

Dazed_and_C0nfused

Giving them the P45 tends to ensure things are more upto date.

[Deleted User]

housebuyer143 said:

Dazed_and_C0nfused said:

housebuyer143 said:

Dazed_and_C0nfused said:

Why is your P45 incorrect?

Doesn't it reflect the payments made to the point you left the company?

They will presumably make the final payment as a "payment after leaving".  This is made using tax code 0T and would not involve the issue of a revised P45.

Why would they use the OT tax code? The whole point of splitting the payments was to pay less tax as I am not a tax payer and I don't pay NI, but this seems like I'm going to end up paying more?? I explained my reasons to them and they never once mentioned to this to me.

Will I get this back in my future payslips from my new employer?

Because the 0T is the tax code used for payments after leaving an employment.

Highly unlikely your new employer will refund any additional tax but HMRC will refund any overpaid tax once they review the year in due course.  Or if will come out in the wash from you completing a tax return if you need to complete one for some reason.

Thanks, so frustrating that no one offers up all the Information when you ask them about doing this. At least I will get the tax back at some point 👍 

I did a new starter check list (p46) for my new employer, should I now give them the P45 or will that be sufficient for them to set me up correctly? 

You give them the P45. Definitely. The P46 form should only be completed where no P45 is available. 

It should also be pointed out that, had the old employer not issued the P45 until after the second payment, the date on it would have been considerably after the date that you started the new job which would have muddied matters further. Your old employer operated PAYE to the letter. 

chrisbur

housebuyer143 said:

Dazed_and_C0nfused said:

Why is your P45 incorrect?

Doesn't it reflect the payments made to the point you left the company?

They will presumably make the final payment as a "payment after leaving".  This is made using tax code 0T and would not involve the issue of a revised P45.

Why would they use the OT tax code? The whole point of splitting the payments was to pay less tax as I am not a tax payer and I don't pay NI, but this seems like I'm going to end up paying more?? I explained my reasons to them and they never once mentioned to this to me.

Will I get this back in my future payslips from my new employer?

The OT tax code is the code your employer is required to use for any payment made after the P45 is issued.  Tax will eventually be based on taxable income for the year so if no tax is due any taken from this payment will be refunded.  It is possible that HMRC will send the adjusted pay/tax details to your new employer but how long that will take I do not know.
You have saved on NI and in the end the tax due will not be affected.

housebuyer143

chrisbur said:

housebuyer143 said:

Dazed_and_C0nfused said:

Why is your P45 incorrect?

Doesn't it reflect the payments made to the point you left the company?

They will presumably make the final payment as a "payment after leaving".  This is made using tax code 0T and would not involve the issue of a revised P45.

Why would they use the OT tax code? The whole point of splitting the payments was to pay less tax as I am not a tax payer and I don't pay NI, but this seems like I'm going to end up paying more?? I explained my reasons to them and they never once mentioned to this to me.

Will I get this back in my future payslips from my new employer?

The OT tax code is the code your employer is required to use for any payment made after the P45 is issued.  Tax will eventually be based on taxable income for the year so if no tax is due any taken from this payment will be refunded.  It is possible that HMRC will send the adjusted pay/tax details to your new employer but how long that will take I do not know.
You have saved on NI and in the end the tax due will not be affected.

Thanks, I am going to be getting carers allowance so I suppose the last thing I need is to be getting tax refunds in future pay as that will make me ineligible for carers as I will end up over the threshold, which does seem unfair. All previous tax refunds were made through my pay so I guess I am going to have to expect it 🙄 and just hope they don't spread the refund over a few months! 
Good that I saved on NI though 👍 

housebuyer143

My employer says they will reissue the P45 next month... Hmmm and carers say they disregard tax refunds so that's good. 
Let's just see what happens next month I guess 🤞