Quizzes & Puzzles1 min ago
P45 - reissued with correct earnings
7 Answers
Two months ago I resigned from my job, my employer calculated my wages and issued a P45. I was unhappy with wages calculation and asked them check their figues. Saturday just gone I recieved a letter from them saying that they had found an error in may wages. They enclosed a cheque for the gross amount �191.06. With a note that this amount is liable for tax. Can I insist that they correct my earnings through PAYE and issue me with an amended P45? I belive that they have acted iligally by making a gross payment to me and not not deducting Tax or N I. Thanks for any advice out there.
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You are off the payroll of Employer 1 so it is going to cause a major complication to reverse the situation and resolve in the way you suggest. If you are now employed by Employer 2 in another job, it is simply not feasible to reverse out in the way you suggest. They can't issue you with a revised P45 because you are now employed by Employer 2 who set you up using the figures on the original P45.
Far better they did the sensible thing and paid you gross but remind you what your responsibilities are.
Declare it to HMRC as casual earnings at the end of the year.
Far better they did the sensible thing and paid you gross but remind you what your responsibilities are.
Declare it to HMRC as casual earnings at the end of the year.
No they won't.
Why would any employer agree to deduct tax/NI from an employee where the earnings are nothing to do with them?
To the new employer these are effectively third-party casual earnings, paid gross to the employee.
To do what you suggest would have to involve putting the whole of the �191.06 through the payroll of the new employer because the software used by employers automatically calculates the required NI and tax deductions.
As I stated before, Cyril will have to deal with the earnings directly through HMRC.
Why would any employer agree to deduct tax/NI from an employee where the earnings are nothing to do with them?
To the new employer these are effectively third-party casual earnings, paid gross to the employee.
To do what you suggest would have to involve putting the whole of the �191.06 through the payroll of the new employer because the software used by employers automatically calculates the required NI and tax deductions.
As I stated before, Cyril will have to deal with the earnings directly through HMRC.
Everything buildersmate has said on this thread is absolutely correct. Nothing illegal has happened. Employer No1, having made an initial mistake granted, has dealt with the problem they only way they now can.
The whole scenario has nothing to do with employer no 2 who shouldn't really be involved (though in practice, if they did just put the �191.06 onto your top line in their payroll software then it would sort the position so it is a possible, if technically incorrect solution).
The technically correct solution is to request a tax return and declare the earnings on it.
In practice of ocurse if you "forget" to do so the Revenue won't give two hoots about it and you'd be extraordinarily unluck y to be caught out. Even if you were you'd end up with just the �40 to pay having pled ignorance to not having declared it if you had any sense. The Revenue tax evasion peopel have better things to be doing than chasing you for �40. It's not wirth their effort as the costs of doing so would far outweigh the tax lost.
The whole scenario has nothing to do with employer no 2 who shouldn't really be involved (though in practice, if they did just put the �191.06 onto your top line in their payroll software then it would sort the position so it is a possible, if technically incorrect solution).
The technically correct solution is to request a tax return and declare the earnings on it.
In practice of ocurse if you "forget" to do so the Revenue won't give two hoots about it and you'd be extraordinarily unluck y to be caught out. Even if you were you'd end up with just the �40 to pay having pled ignorance to not having declared it if you had any sense. The Revenue tax evasion peopel have better things to be doing than chasing you for �40. It's not wirth their effort as the costs of doing so would far outweigh the tax lost.
Tks everone who posted an anwser. I bite the bullet and 'phoned the Tax Office in Liverpool, spoke to a very helpful young lady who gave details of an empoyers liabily in making a payment after the P45 had been issued. I went straight to the page and there was the anwer. My ex employer should have deducted tax using a BR Tax Code non cumulatively and deducted NIC using the earnings the final wage payment related too. They should then have included all this data in a covering letter with the cheque, plus they have sent to a copy of the letter their PAYE office,
I have retuned the cheque and requested that the correct procedures are followed. Thanks folks for prompt your prompt anwers, I new someone would point me in the right direction.
I have retuned the cheque and requested that the correct procedures are followed. Thanks folks for prompt your prompt anwers, I new someone would point me in the right direction.
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