Inland Revenue - taking but not giving back

greenflamingo_2

When I was made redundant in January my employer taxed damages which was given in place of PILON as they were in breach of contract. They then rang up the Inland Revenue when I complained and were told that I had a good chance of getting the money back. So I wrote a letter a month ago to my local tax office and havent received any response - the money is around £2.5K.

Should I now ring the Inland Revenue or should I complain in writing?
I havent got a P45 or a P60 as on mat leave and employer needs to keep it - I think P60 due in April.

fengirl_2

First of all, most tax offices have over 6 weeks post on hand, so you are a little early to be worrying. It is possible that HMRC is in touch with your employer, asking why the payment was taxed.
If you are still on your employer's books, then he should be making the refund - have you spoken to him about it?

greenflamingo_2

Thanks Fengirl. I did actually present my ex employer with a print out from the Inland Revenue's own website on what was taxable and what wasnt. They still insisted on taxing the payment as they said they were concerned that the I.R. would come after them for it if they didnt! Really they have been far from helpful in all matters.

They have said that I cannot have my P45 as they are paying me monthly my SMP and I wont get this back until September.

So there are two issues really i) the taxed payment which shouldnt have been taxed and ii) overpayment of tax in general for the tax year

Would I be able to get refunds directly from the I.R. and would the P60 do instead of the P45?

fengirl_2

While you are still on your employer's payroll, HMRC cannot interfere and any refund within the tax year can onoly be made by your employer. This is because employers only make returns of employees' pay and tax until after the end of the tax year.

Your employer is very naughty not to have taken proper advice before deducting the tax and it might be worth ringing HMRC to see if they could faw or email a letter to your employer confiroming that the payment isn t taxable and asking them to refund the tax to you.
Failing that, you would have to wait until after the end of the tax year (which is v close) and submitting your P60 to HMRC with a letter claiing a refund. Even then there will be a delay as HMRC will want to enquire with your employer as to what the payment actually was and why they taxed it.
I have to say that your employer has got you into this situation, not HMRC.

greenflamingo_2

Many thanks Fengirl for the advice.

Thoroughly agree the blame lies squarely at the feet of my ex-employer - it is bad enough losing your job without having £000's unfairly deducted.