Paying tax after P45 issued
Discussion
Currently going through a redundancy process with my employer which was due to conclude 21st March. I have proposed an alternative solution which stalled the process but too late to stop the final payroll/P45 being issued.
They have subsequently agreed to pay me until 31st March whilst my proposal is considered and I'm working 'as normal'.
My question: since the P45 has been issued, should my 'former' employer be making deductions from the payment for tax & NI or should they just pay the gross amount and leave me to deal with deductions?
They have subsequently agreed to pay me until 31st March whilst my proposal is considered and I'm working 'as normal'.
My question: since the P45 has been issued, should my 'former' employer be making deductions from the payment for tax & NI or should they just pay the gross amount and leave me to deal with deductions?
prout said:
Currently going through a redundancy process with my employer which was due to conclude 21st March. I have proposed an alternative solution which stalled the process but too late to stop the final payroll/P45 being issued.
They have subsequently agreed to pay me until 31st March whilst my proposal is considered and I'm working 'as normal'.
My question: since the P45 has been issued, should my 'former' employer be making deductions from the payment for tax & NI or should they just pay the gross amount and leave me to deal with deductions?
This is the HMRC guidance:They have subsequently agreed to pay me until 31st March whilst my proposal is considered and I'm working 'as normal'.
My question: since the P45 has been issued, should my 'former' employer be making deductions from the payment for tax & NI or should they just pay the gross amount and leave me to deal with deductions?
Payment after leaving: For any further payments made after you have given the employee a P45 - including share-based payments - complete the following steps:
Deduct PAYE tax using code 0T on a week 1/month 1 basis.
Calculate NICs if appropriate - there's information to help you work out if the most common types of one-off leaving payments are liable to NICs or not in CWG2 'Employer Further Guide to PAYE and NICs'.
BTW code 0T gives NO personal allowance, so you may overpay.
David
sumo69 said:
This is the HMRC guidance:
Payment after leaving: For any further payments made after you have given the employee a P45 - including share-based payments - complete the following steps:
Deduct PAYE tax using code 0T on a week 1/month 1 basis.
Calculate NICs if appropriate - there's information to help you work out if the most common types of one-off leaving payments are liable to NICs or not in CWG2 'Employer Further Guide to PAYE and NICs'.
BTW code 0T gives NO personal allowance, so you may overpay.
David
ThanksPayment after leaving: For any further payments made after you have given the employee a P45 - including share-based payments - complete the following steps:
Deduct PAYE tax using code 0T on a week 1/month 1 basis.
Calculate NICs if appropriate - there's information to help you work out if the most common types of one-off leaving payments are liable to NICs or not in CWG2 'Employer Further Guide to PAYE and NICs'.
BTW code 0T gives NO personal allowance, so you may overpay.
David
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff