Settlement Agreement

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[Deleted User]
[Deleted User] Posts: 0 Forumite
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in Employment, jobseeking & training
Hi,

I entered into a settlement agreement with my company and I've just received my P45 through the door but it doesn't show any of the money outlined in the agreement.

I was wondering why it doesn't show the settlement agreement amount? I've also not had the final settlement payment which is due by end of this month.

Can someone help me who has an understanding of P45's and settlement agreements being paid out please.

Thanks

Comments

  • AJ1982
    AJ1982 Posts: 266 Forumite
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    Assuming the settlement figure is below £30,000 it’s not taxable and therefore not subject to be shown on a P45
  • lulu650
    lulu650 Posts: 1,158 Forumite
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    If Pay In Lieu and Holiday Pay was included in the SA, that will be taxed and made clear in the clauses. HMRC come down on this very hard nowadays with employers.

    There should be a clause stating when you will be paid the SA figure which you indicate is at the end of this month, so no problem with that.

    If you have further queries, ask the solicitor who signed this off. I would doubt he would charge for 5mins time......hopefully
    Saving money right, left and centre
  • [Deleted User]
    [Deleted User] Posts: 0 Forumite
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    PILON is being taxed even though it's under 30k but definately not on P45. Date for payment is end if month so will have to wait and see I guess.

    I just though they wouldn't issue a P45 until all taxable payments have been made to me in full.
  • Ja7188
    Ja7188 Posts: 336 Forumite
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    I just though they wouldn't issue a P45 until all taxable payments have been made to me in full.

    I don't think it's unusual for payments to be made after a P45 issue has been issued - I've had this happen with more than one previous employer for items like commission payments in arrears etc...
  • trix-a-belle
    trix-a-belle Posts: 1,481 Forumite
    First Anniversary Name Dropper First Post Mortgage-free Glee!
    edited 29 November 2023 at 12:15PM
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    Deleted_User wrote: »
    PILON is being taxed even though it's under 30k but definately not on P45. Date for payment is end if month so will have to wait and see I guess.

    Pilon is taxable, its termination payments where the up to £30k not taxable limit
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