Trying to understand p-45 please help

[K + M 47]

Hi we are working on filing taxes (AOS interview Soon), so first year after K-1(came to US may 2019), and one of the very important thing is figuring out how much foreign income my wife had in 2019 that needs to be excluded.  To accomplish this we are are trying to understand this P-45 form.  A couple questions, thank you in advance, they are:

 

1. It says a "Total Pay to date" amount in Part 1A, number 7, is that the amount she earned in 2019, Jan 1st up until her leave date?  The reason I am asking this is because it shows an amount that if just taking her hourly rate X how many weeks worked in 2019 she earned a lot more.  

 

I don't see any other total pay amounts on the whole form so I am kind of at a loss.

 

2. Does the P-45 go from Jan 1st of the year up until leave date or is it from UK's tax cycle of April - April?

 

Really trying to understand this form, met with my tax guy today and we just need to figure out my wifes foreign income and all should be fine.

 

 

Thank you so so much in advance, really just trying to understand this form.

[Sweetdreaming 397]

1. correct its for the whole calendar year

 

2. the p45 is like the UK tax year, so April - April. This year specifically its 6 April 2019 to 5 April 2020, so this is probably why it seems the earnings are much lower from the information on the P-45 as it will only be counting April 2019 - May 2019 when she moved. I had made the same mistake. Luckily you can go on to the HMRC website and see all of your taxable income for this and previous years it shows the amount of every pay check received for each week / month she got paid and how much tax and NI  was deducted.

Edited February 10, 2020 by skjourney

[K + M 47]

22 hours ago, skjourney said:

1. correct its for the whole calendar year

 

2. the p45 is like the UK tax year, so April - April. This year specifically its 6 April 2019 to 5 April 2020, so this is probably why it seems the earnings are much lower from the information on the P-45 as it will only be counting April 2019 - May 2019 when she moved. I had made the same mistake. Luckily you can go on to the HMRC website and see all of your taxable income for this and previous years it shows the amount of every pay check received for each week / month she got paid and how much tax and NI  was deducted.

what exactly is the process to accessing that information on the HMRC website?

 

Also I am a little confused as you said "seems the earnings are much lower from the information on the P-45, the only income that was reported on the P45 was a very one very low amount, she left in May 2019, so is that pay to date just the money that was paid during the new UK tax year which would of been that April 2019- May 2019?

 

and I am a little confused on #1 you answered its for the whole calendar year, the only income that was reported on the P-45 my wife gave me to show the tax guy was the 1 very low income, and then in #2 you stated April-April.

Edited February 11, 2020 by Kerri and Myles

[Sweetdreaming 397]

13 minutes ago, Kerri and Myles said:

what exactly is the process to accessing that information on the HMRC website?

you have to sign up, you will need NI number I believe, its been a while since I did it. Its pretty straightforward.

https://www.gov.uk/personal-tax-account

 

13 minutes ago, Kerri and Myles said:

the only income that was reported on the P45 was a very one very low amount, she left in May 2019, so is that pay to date just the money that was paid during the new UK tax year which would of been that April 2019- May 2019?

Exactly, it would be the total for April - May 2019 only, so you need the info from HMRC (or instead if you have wage slips you can use those of course) for Jan - March 2019 for your US tax return.

Edited February 11, 2020 by skjourney

[K + M 47]

She's working on creating the account now, hopefully it all works out, but if for some reason it doesn't what would be the means to figure out income for her from Jan 1st -departure date in may 2019?  If don't have access to pay stubs 

[Sweetdreaming 397]

If that fails, then does she have access to online banking and look at past statements ? that would be another way to get the information, would be more of a pain to do it that way, but certainly possible.

 

 

[K + M 47]

on the HMRC site and the tax year april 2018-2019 is just saying this :

 

 

 

But what it doesn't say anywhere is the amount she was paid from 6 april 2018 to 5 april 2019, there are no pay statements even tho she was paid during that whole time, maybe I am missing something?

[Sweetdreaming 397]

yes, the website is a nightmare to get through at times.

Go to Account Home > PAYE > Check previous tax years > Check the income details sent to us

 

hope this helps

[K + M 47]

10 minutes ago, skjourney said:

yes, the website is a nightmare to get through at times.

Go to Account Home > PAYE > Check previous tax years > Check the income details sent to us

 

hope this helps

This Worked perfectly! Did this and it showed exactly the Paychecks that got paid in all of 2019, since january and then we went to check current tax year and then added up the previous tax years jan-april and current tax years april - may and boom was able to come up with the amount she was paid in all of 2019.  

 

thank you so much! 

 

 

Edited February 11, 2020 by Kerri and Myles

[Wuozopo 4,293]

2 hours ago, Kerri and Myles said:

She's working on creating the account now, hopefully it all works out, but if for some reason it doesn't what would be the means to figure out income for her from Jan 1st -departure date in may 2019?  If don't have access to pay stubs 

In the original post you said you know “her hourly rate X how many weeks worked in 2019”. 
Calculate it and convert to US dollars. Hand the tax guy a piece of paper that says that amount and say “This is her foreign earnings”. The IRS does not require any paper documentation from HMRC be submitted with the tax return. Get as close as possible and it will fly with the IRS. The fact that you are reporting foreign income shows you are being an honest taxpayer. 
 

Edit:  Ahhh, I see you got it online after all.

Edited February 11, 2020 by Wuozopo