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How/where do I put redundancy in my accounts? and what about tax?

(17 Posts)
KatyMac Thu 18-Sep-08 21:03:35

I made a member of staff redundant

I need to pay her her redundancy

Umm How do I record it & how do I tax it & what do I write on the payslip?

ssd Thu 18-Sep-08 21:06:08

oh KM, thats a shame

are you really quiet?

KatyMac Thu 18-Sep-08 21:07:16

Completely dead (well 2 children a day)

I'm now up to 4 staff going or gone sad

ssd Thu 18-Sep-08 21:13:37

thats rotten

what do you think is causing it, do you think its the childrens club near you?

KatyMac Thu 18-Sep-08 21:16:04

I really don't know

Recession? Children's Centre? A drop in the birth rate? an increase in maternity leave?

They all have an effect - but it does seem to be fairly widespread locally, so at least I know it isn't me (iyswim)

abouteve Thu 18-Sep-08 21:20:00

Depends if the wages are computerised. If so there should be a category for redundancy.

If not then you can just add the amount on the payslip. Redundancy payments should not be taxed. It would be recorded as wages in your accounts. Just highlight that it was redundancy payment and not normal wages.

ssd Thu 18-Sep-08 21:20:02

sad

KatyMac Thu 18-Sep-08 21:21:10

Thanks

I use the IR (sorry that should be HMRC) CD-rom, I wonder if there is a space

ssd Thu 18-Sep-08 21:24:11

bump for yousmile

LadyMuck Thu 18-Sep-08 21:26:19

KM have a look at pp89-91 here. As I guess that the redundancy pay is tax free, I would just make out a separate payment for that as it shouldn't appear on the P45 etc.

KatyMac Thu 18-Sep-08 21:31:11

Gulp

That is a document & a half

I think I understood my bit of it

LadyMuck Thu 18-Sep-08 21:35:22

I think that the shortcut is to forget about the redundancy for payroll purposes as it doesn't affect anything and shouldn't appear on P45, and needn't appear on wages slip. Write a separate cheque for the redundancy.

KatyMac Thu 18-Sep-08 21:41:22

It feels so odd

18 months ago I was running a highly successful business now I am scrabbling at remaining open sad

abouteve Thu 18-Sep-08 21:49:37

A friend runs a large childminding business and she is struggling now. I'm being made redundant from my job at the end if the month. Its becoming widespread I'm afraid.

KatyMac Thu 18-Sep-08 21:51:42

Oh - how big is/was she?

It's nice to hear about other group minding

Shame she is struggling too

abouteve Thu 18-Sep-08 21:54:48

She still does it from home with the help of her DP. It was a sucessful business for the two of them. Not sure how many children they were licensed for but the summer holidays were abysmal for them.

KatyMac Thu 18-Sep-08 21:56:23

Poor things

It is a nightmare - so unexpected as unemployment isn't yet a big issue

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