Payment after Leaving

  • Pay & Benefits
Peninsula Logo

Peninsula Group, HR and Health & Safety Experts

(Last updated )

Read our article: 'Payment after Leaving'. Contact us today for more information about our Employment Law, Health & Safety, and HR services.

When dealing with employees who are leaving your business, it is a relatively common occurrence that owed monies, for whatever reason, are still due to those who have already left your company. This could be for owed holiday pay, salary, bonuses, commission, or any other type of owed pay. If a leaver has already been taken off your payroll software and a P45 has already been issued, then what steps should be taken? Firstly, a 2nd P45 should never be issued. It is currently illegal for a company to issue a second P45, even if it is to replace an incorrect first P45. A statement of earnings should be issued instead; this is where all the information that is on the P45 is placed onto your company’s signed letter headed paper. Secondly, the employee’s record on the payroll software should be re-added, re-hired, or reactivated (there are several terms used to cover the process of being able to submit another payment through their record) The payment should be paid using a 0T week 1 / month 1 tax code, and National Insurance should be deducted as normal (if it is an irregular payment, such as a bonus that is not expected, then the payment should be treated as weekly for National Insurance purposes) A payslip is produced and given to the employee for the payment after leaving. Finally, the payment details for the employee are added onto the Full Payment Submission for the pay period in question. What information should be put on the full payment submission? Is an employee unhappy they have to pay more tax on their payment after leaving? What if the payment after leaving is free of tax or National Insurance? For answers to these questions, or any other questions in regard to this process, please call the Peninsula Payroll Advice line on 0844 892 2772 Option 3, between Monday to Friday 9am – 5:30pm.

FAQs

Got a question? Check whether we’ve already answered it for you…

Related articles

  • Company fined

    Blog

    Worker suffers life-changing injuries at metal processing company

    A metal processing company has been fined £12,000 following an incident that inflicted life-changing injuries on one of its workers

    Peninsula TeamPeninsula Team
    • Grievance
  • minimum wage increase

    Blog

    National Living Wage increase creates risks for employers

    Clear risks remain for employers as meeting legal national living wage obligations can be much more complex than simply paying a worker the correct rate per hour

    Peninsula TeamPeninsula Team
    • Pay & Benefits
  • father and his young daughter posing in garden

    Blog

    Preparing for new HR laws: Paternity leave

    April changes are here - and what’s new for family entitlements?

    Peninsula Team Peninsula Team
    • Pay & Benefits
Back to resource hub

Try Brainbox for free today

When AI meets 40 years of Peninsula expertise... you get instant, expert answers to your HR and Health & Safety questions

Sign up to our newsletter

Get the latest news & tips that matter most to your business in our monthly newsletter.