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Please note - We have just released an automated PAL process, however, the feature is still in BETA, if you would be interested in using this feature while it's in beta, please reach out to our support team.
From time to time, employees are due payments after they have left the business. If an employee has already been terminated, had their P45 produced and had their leave date reported to HMRC, then we are unable to amend their record and a Payment After Leaving (PAL) will need to be processed.
- Use tax code 0T on a week 1 or month 1 basis (use the code S0T if they’re taxed at the Scottish rate or C0T if they’re taxed at the Welsh rate).
- Deduct National Insurance (unless it’s a redundancy payment) and any student loan repayments as normal - but if it’s an irregular payment like accrued holiday pay or an unexpected bonus, treat it as a weekly payment.
- Report the payment and deductions in your next FPS, using the employee’s original Date of leaving and payroll ID, and set the Payment after leaving indicator.
- Give the employee written confirmation of the payment showing the gross amount and deductions (a payslip).
- Add the additional payment in the Year to date field on the FPS if the payment is in the same tax year.
Please note - A new P45 will not be provided.