Been sent P45 too soon?

TrudieinLondon · 2 June 2018 at 1:22PM

Hello, I have just been made redundant. The communications from my company werent that helpful beforehand in terms of informing us how this all works practically so I am a bit in the dark about the financial side.

Basically I am still owed some pay and HR told me as I had not received it in this months payroll run they would be paying me via CHAPS.

Also, as I have only just signed my Settlement Agreement I havent received my redundancy pay yet. This is due to happen within 21 days.

But they have just send me my P45 in the post. How does this work if they have not paid me everything yet? Sorry if this is a really basic question.

Dazed_and_confused · 4 June 2018 at 10:34PM

It's not that unusual.

When they make the final payment they will use a different tax code, 0T. This could mean you owe more tax or are due a tax refund when HMRC review things at the end of the tax year.

Madbags · 8 June 2018 at 3:23PM

Yes it will be classed as the below from HMRC website:

Paying an employee after giving them a P45

If you have to pay an employee after they leave (including someone you!!!8217;re giving a taxable redundancy payment over £30,000):
use tax code 0T (S0T, if they are taxed at the Scottish rate) on a !!!8216;week 1!!!8217; or !!!8216;month 1!!!8217; basis

deduct National Insurance (unless it!!!8217;s a redundancy payment) and any student loan repayments as normal - but if it!!!8217;s an !!!8216;irregular!!!8217; payment like accrued holiday pay or an unexpected bonus, treat it as a weekly payment

report the payment and deductions in your next FPS, using the employee!!!8217;s original !!!8216;Date of leaving!!!8217; and payroll ID, and set the !!!8216;Payment after leaving!!!8217; indicator

give the employee written confirmation of the payment showing the gross amount and deductions

add the additional payment in the !!!8216;Year to date!!!8217; field if the payment is in the same tax year

The payment should be the only one in the !!!8216;Year to date!!!8217; field if it!!!8217;s being paid in the next tax year.

You will not receive another P45.

Been sent P45 too soon?

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