I have just taken on a new client and am helping him get sorted for his SA return - he left it late.
He has 2 P45s one from when he was made redundant and one for the p[eriod he claimed JSA. Not quite sure which to use, do I total the amount of pay on them and use this figure or do I just use the JSA one? If I ignore the one from employment it would ignore the amount he had earned and tax paid.
Not come across this before normally it's just a P45 and I use that.
I think you will use both. I had same situation following redundancy in 2011 and input amount of JSA into tax return under UK pensions, annuities and other state benefits received and the employment income on employment page. Also depending on redundancy lump sum some info may go into Share schemes, employment lump sums etc.
The latest P45 should have a total pay including taxable benefits to date and total tax to date and use the tax code for payroll from this latest one. So sorry the answer to your first question should have been just the latest one as it should include above info. I was going from my old self assessment tax return where I split the figures.
Apologies for the confusion and hope that helps or someone else may confirm or clarify.
that helps, I am going to use the latest one, not sure why it doesn't include the info from the previous employment other than the fact I seem to have all the pages from the 1st one which suggest he didn't give it in!
He is also doing a SA form so can input the figures into that when he completed it.
If the P45 earnings from the old job are within the tax year, they must be included in the SA tax return if they are patently absent from the Job Seeker P45. Often there is a delay or the employee never hands the P45 to the DWP.
It would also explain the absence of brought forward figures in the JobSeeker P45 if the redundancy was prior to April 6th.
How much ESA / JSA he received per week and a short history of dated events might serve as a pointer.
Kind regards,
-- Edited by Don Tax on Saturday 25th of January 2014 11:46:08 PM
Left job end of May 12 but P45 states 26/4/12, it has his earnings and tax. the comp slip with it has the wrong tax year on it so not convinced the company knew what it was doing!
Claimed JSA from leaving until end of 7/12 this has earnings but doesn't include those from previous job and no tax paid.
the JSA is approx £100 per week.
He then became self employed
I assume for his new employment he uses the later P45 and then HMRC would send a new tax code out, although he also has a PAYE coding with a different tax code to the one on his JSA P45. For his SA form he would use all the info on the P45's and input his self employment earnings.
If possible, telephone the agent helpline and request the 12/13 earnings. As they're new, your authorisation might not yet be in place.
As you don't trust the P45 year then it will take the pressure off you to warn the client that the SA and Balancing liability must therefore be considered provisional and give your reasons. Make the tax payable figure generous and enter the bank details for possible refund.
Consider ticking the SA 'Provisional' box and making notes in the blank white space.
You have it from the horses mouth though that he worked in the 12/13 tax year
You're satisfied that the JSA doesn't include the previous job so the P45 figures must be entered in the Employment supplement. I've known tax free redundancy pay to be shown so you have to use your judgement to an extent.
He is submitting his own SA form so will tell him to input everything and that there is confusion due to the P45s. All he is asking me for is figures for his self employment.
Will be glad to get this one sorted, its been a learning curve!
