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HMR + "established and accepted practise" + tax
greenflamingo_2
Posts: 128 Forumite
in Cutting tax
Hi All
I have challenged the deduction of tax and NI from my 13 weeks redundancy notice period. Basically we were told to finish immediately and not given the option of working the notice. There is no mention of PILON in my contract of employment (as it is 20 years old). When I wrote to the Inland Revenue reclaiming the income tax I was told:
"In some circumstances payments in lieu of notice made without legal obligation can be chargeable as earnings under Section 62 Income Tax (Earnings and Pensions) Act 2003 if it is customary to make it.
*** have advised that although they do not have a written company policy on termination payments, they have made payments in respect of pay in lieu of notice for many years, and it has now become an established and accepted practise".
I know *** have been deducting income tax for approx 2 - 3 years and finishing people immediately without the option of working notice.
Does there have to be a certain number of years before deducting tax becomes an "established and accepted practise" and an employee hasnt a chance in hell of reclaiming it?
I have challenged the deduction of tax and NI from my 13 weeks redundancy notice period. Basically we were told to finish immediately and not given the option of working the notice. There is no mention of PILON in my contract of employment (as it is 20 years old). When I wrote to the Inland Revenue reclaiming the income tax I was told:
"In some circumstances payments in lieu of notice made without legal obligation can be chargeable as earnings under Section 62 Income Tax (Earnings and Pensions) Act 2003 if it is customary to make it.
*** have advised that although they do not have a written company policy on termination payments, they have made payments in respect of pay in lieu of notice for many years, and it has now become an established and accepted practise".
I know *** have been deducting income tax for approx 2 - 3 years and finishing people immediately without the option of working notice.
Does there have to be a certain number of years before deducting tax becomes an "established and accepted practise" and an employee hasnt a chance in hell of reclaiming it?
0
Comments
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For what is an "established and accepted practice" you might want to look at SCA Packaging Ltd v R & C Commrs.0
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