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Basic PAYE Tools

Sue Brignell
Posted Wed, 01 Mar 2023 18:43:42 GMT by Sue Brignell
How do I record redundancy payments in Basic PAYE Tools.
HMRC Admin 10
Posted Thu, 02 Mar 2023 15:15:27 GMT by HMRC Admin 10
Hi
You will have to first establish if the redundancy payment is free from tax and National Insurance.
Bearing in mind that part could be tax and NI free and the rest subject to tax and NI.
If it is just "Statutory Redundancy" then this will be free from tax and NI.
When you go to make a normal employee payment there is a drop down for "free from tax and NI" this is where you would put the figure.
If any of the payment is subject to tax and NI you would put this portion into the normal boxes.
If you have any concerns feel free to call us on 0300 200 3200.
Thankyou.

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