Any payroll experts here?

[Pinkmexicanskull]

Finishing at my current job on friday 6th April. Tax year runs from 6 April 17-5 April 18. Does this mean my P45 when issued will only have one day of pay on it?

Depending on how your monthly pay is calculated etc.

If you are paid for each calendar month (ie 1-31) you will get your last salary for the year on or before March 31st. You will then get a P60 for that time.

You will then get paid for any days you have worked in April on the usual date for your April pay (which is often between 25th to end of Month).

You will then get a P45 some time after that.

If you are paid weekly in arrears, or something, your last pay day this tax year will be Friday 30th March, and you will get one weeks pay on Friday 6th April, and one further weeks on Friday 13th April.

Hope this helps

I believe so. What do you need your P45 for? If you want a listing of the tax paid during the previous year, you could request your P60 early (31st of May is the normal deadline).

What day of the month are you paid and what period does it cover (I.e. I’m paid on 6th of the month for the previous calendar month)?

@topcat2014 thanks so much. It’s the first option- does this still mean however the figure on my P45 will only be the April pay? My April salary will be paid on 28 April even though I only worked 1-6th

I have consulted my in-house payroll expert, who advises that:

if you were paid in advance for that day eg at the end of March, it will be in your P45 with the rest of your pay; or

if it is paid after 5/4/18, you'll get a P45 with one day's on it.

Just seen your update.

As the pay for 1-6 April will all be in the new tax year, it will all be on the P45.

I do payrolls for some of my clients, and I would simply ask you which you would prefer. Some people would rather not have their entire year's salary on their P45 for various reasons.

I need my P45 for a new role I start mid April. I’d rather not have my entire previous tax years salary on my P45 for various reasons (one being not wanting my new company to be able to work out my previous salary) so wasn’t sure if my P45 issued after my last working day of 6th April would only have 2 days on (my preference) versus the entire of 2017-2018

@lakielady I would have been paid for March in full on 28th March. So for my salary from 1-6 April I’ll be paid on 28 April even though I’m no longer employed. My P45 will be issued I guess around the time I leave so I assume as per your advice it will have only my April days worth of pay on?

Thanks for your advice- much appreciated everyone!

The way the system works now is that every time you’re paid it’s reported electronically to HMRC. So is your P45.

Therefore you probably won’t get your p45 until you’ve been paid, so for one month you’ll officially be employed by two companies.

The problem with this is that HMRC will likely cock up your tax code, so you could end up paying too much tax. You will get it back, but not straightaway.

@unimaginativeuser agh, that’s what I hoped wouldn’t happen. I might call HMRC to see if there’s a way to avoid that: really don’t want to be overtaxed!

Your payroll department will likely have already received your tax code for the new tax year, and they should definitely change it before running your April wage. And yes to the P45 only having the earnings processed after 6th April on it.

Sorry just re-read that properly, yes there is a risk of overlap, if you are paid twice between 6 April- 5th May. Make sure you tick box b when you complete the P46.

You lot are legends- thank you. I’ll definitely end up being taxed wrongly as I’ll be being paid by two different companies in the same month. And dealing with HMRC makes me want to pull my face off! How much higher than normal is emergency tax?

Once your new company have your P45 (ie in time for your second month's salary) they will enter the amount you earned in the first week in April in your old company, apply the correct tax code and make a calculation that will ensure that in that second month your total tax for the two months is corrected.

You do not have to speak to HMRC. You will be slightly out of pocket in April, and will get it back at the end of June.

@haffiana that’s wonderful, thank you. Saved me losing my marbles to HMRC!

The important thing is not what the wages are for but the date on which they are paid. If you are paid 6th April or later then the wages will fall into 2018/19.
Chances are that between the two companies your tax will go squiffy for month 1, but it will right itself in due course. Will you be getting paid for holiday not taken at your old company - that may help cashflow.

You are not obliged to give your new employer your P45 if you don't wish to.

You can just ask to fill in the new starter checklist instead.