Redundancy and the order of payments & tax
Discussion
Hi all
I'm undergoing redundancy at the moment. Final official day with company is 2nd June but I'm already on gardening leave (& have been for a while).
The company have processed the May payroll and included the 2 extra June days within May payment & issued the P45. I believe the redundancy payment will be triggered in the June payroll run (so in about 4 weeks).
All good so far. I'm running the "numbers", and I'm not convinced they have paid me for due holidays. We had a "bank" system where I had 5 days banked, + I have effectively accrued holiday whilst on garden leave also this year.
Should they have processed this in payroll, or would it normally be calculated in final redundancy payment ?
I'm going to look at the numbers more closely over next day or so, but wanted to know how this is normally done. I could just wait until end June but want this as clean as possible and knowing how long payroll problems take to get sorted out, if they've missed it I'd rather get the ball rolling.
On the tax front, I understand the redundancy will have £30k tax free and anything on top then tax will be deducted at normal PAYE (this is not a payment for services but a redundancy payment in line with company redundancy policy). I'll need to sort out this in standard self assessment this tax year. Anything to be wary of in this or is it relatively simple ?
Thanks for any advice on how this is "normally" done.
I'm undergoing redundancy at the moment. Final official day with company is 2nd June but I'm already on gardening leave (& have been for a while).
The company have processed the May payroll and included the 2 extra June days within May payment & issued the P45. I believe the redundancy payment will be triggered in the June payroll run (so in about 4 weeks).
All good so far. I'm running the "numbers", and I'm not convinced they have paid me for due holidays. We had a "bank" system where I had 5 days banked, + I have effectively accrued holiday whilst on garden leave also this year.
Should they have processed this in payroll, or would it normally be calculated in final redundancy payment ?
I'm going to look at the numbers more closely over next day or so, but wanted to know how this is normally done. I could just wait until end June but want this as clean as possible and knowing how long payroll problems take to get sorted out, if they've missed it I'd rather get the ball rolling.
On the tax front, I understand the redundancy will have £30k tax free and anything on top then tax will be deducted at normal PAYE (this is not a payment for services but a redundancy payment in line with company redundancy policy). I'll need to sort out this in standard self assessment this tax year. Anything to be wary of in this or is it relatively simple ?
Thanks for any advice on how this is "normally" done.
Edited by Steve Campbell on Tuesday 24th May 21:14
Thanks folks. Pension is locked as got fixed protection and can't pay in so that option isn't open to me (I have already had independent financial advice on this).
This is fine as my pension is good enough not for me to worry and I can use this as a salary bargaining tool for next job to up base salary based on the fact the company won't have to contribute to my pension as I can't do it and keep my fixed protection.
This is fine as my pension is good enough not for me to worry and I can use this as a salary bargaining tool for next job to up base salary based on the fact the company won't have to contribute to my pension as I can't do it and keep my fixed protection.
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