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

[KatyMac]

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?

oh KM, thats a shame

are you really quiet?

Completely dead (well 2 children a day)

I'm now up to 4 staff going or gone

thats rotten

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

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)

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.

Thanks

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

bump for you

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.

Gulp

That is a document & a half

I think I understood my bit of it

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.

It feels so odd

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

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.

Oh - how big is/was she?

It's nice to hear about other group minding

Shame she is struggling too

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.

Poor things

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