Writing out a P45

smcgiff

I'm doing up a P45 for an employee being made redundant.

They will receive a lump sum redundancy amount, but is below the taxable limit.

I've come to box on the Taxable Lump Sum Payment. Do I only put in an amount that is above the threshold i.e. in this case ZERO even though the employee did receive money?!?

Thanks for any help

digitally-yours

Does the following help ?


Where an employee has more than one period of employment with the same employer in the tax year

* The 'Date of Commencement' for the latest period of employment must be completed on the P45

* Only the figures of pay and tax in respect of this latest period of employment with the company should be entered at "(b) If employment started since 1 January last enter Pay and Tax deducted (or Tax refunded) for this period of employment only"

* The Total Pay and Tax from all employments for the period 1 January to the latest date of cessation (including other employers, if any) should be entered on the P45 at "(a) Total Pay & Tax deducted from 1 January last to Date of Cessation"


Example

An employee has worked for 2 periods of employment with the same employer in 2006.

Period 1: 1 January to 25 March 2006
Period 2: 10 June to 15 September 2006

On 15 September the employee leaves after the 2nd period of employment and the employer completes the P45 as follows:


# Date of Commencement - 10 June 2006 (in DDMMYY format)

# Date of Cessation - 15 September 2006 (in DDMMYY format)

# The employee's Pay figure for the period of employment from 10 June to 15 September only should be entered at "(b) Pay (this employment)"

# The employee's Tax figure for the period 10 June to 15 September only should be entered at "(b) Tax Deducted or Tax Refunded"

# The Total Pay and Tax from all employments for the period 1 January to 15 September (including other employers, if any) should be entered on the P45 at "(a) Total Pay & Tax deducted from 1 January last to Date of Cessation"

The Total Pay figure should include the sum of:

Pay for Period 1: 1 January to 25 March 2006
Pay details from other employment(s): 26 March 2006 to 09 June 2006 (if any)
Period 2: 10 June to 15 September 2006

smcgiff

Thanks, digitally-yours,

I've submitted without including an amount for redundancy as there was not taxable amount.