P60 query

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lmiddleham
lmiddleham Registered Posts: 71 Regular contributor ⭐
in General accounting discussion
Hi

I'm filling in a tax return and am little confused by the P60.

The client had an employer who she left part way through the year - she got a P45 from them.

Then the company she works for went into insolvency, and they all got transferred to a different company, although her offices, job, duties stayed the same. She didn't get a P45 as part of this shifty sounding move.

She then has a P60 from the above.

What confuses me is that is has a figure from employment (the companies new name) and a figure from previous employment.

Is this previous employment figure from the current companies old name only or from the old name & her 1st employer of the year?

Hope that isn't too confusing!

I suppose the simple question is does the figure from previous employment include all previous employments throughout the tax year? If it does then I can use the P45 to work out the part that relates to her first employment.

Comments

  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    am not 100% sure what your asking but will say the P60 will include any earning made through the PAYE thoughout the year as when the P45 was issued HMRC would have calculated the code she would have mant to have been put on and issued it to her new employer and the P45 details on the 2nd page presented to the new employer.

    So yes it will include earnings from the prevous job
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    If you have a copy of the old P45 then it should be pretty easy to see whether the previous employment figures relate to that one or not.

    Although all earnings figures should be on the one P60 this assumes the payroll has been operated correctly throughout the year - not always the case.

    I have seen situations similar to the above where the 'old' company details are in previous employment and the 'new' company are in current; even if it was a TUPE situation.
  • lmiddleham
    lmiddleham Registered Posts: 71 Regular contributor ⭐
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    Yep I've used the P45 to help and it seems her job with a completely different company and the TUPE company as you put it were both in previous employment.
  • SSamuel2007
    SSamuel2007 Registered Posts: 6 New contributor 🐸
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    There should be a P45 for each employment and then the total on the P60.

    You could have a difference if you are working from payslips as she may have been paid some of the final salary untaxed.

    I think the liquidator is responsible for sending out P45s.

    Hope this helps.
  • payrollpro
    payrollpro Registered Posts: 427 Dedicated contributor 🦉
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    Dean is right that it ought to be easy, but, as he pointed out not everyone follows the rules properly.

    When your client transferred it is correct that no P45 was issued because it looks like the new employer took over all of the work of the previous one, a sort of TUPE but not the same because it sounds like one company took over the work following the collapse of the previous one.

    A single P60 ought to cover all of her taxable pay and income tax paid in the year, though not her full history of NIC so I think she needs to do a quick check by adding up her payslips, or even looking at her bank statements to see what was paid, this ought to reconcile with the taxable pay on the P60.

    I would also suggest contacting HMRC to check that all her NIC details have been returned correctly by the three employers, particularly the insolvent one. She may have to be patient and wait till closer to the end of this year but if she has her payslips she can check that the total employees NIC in HMRC's records is the same.

    Payrollpro

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