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Tax Credits and redundancy payment??

Hi,

I would be grateful if anyone could give me some advice.
Last July when completing our annual returns form we entered all my husbands earnings from the previous year.

Normally I do all the paperwork but I was in hospital at the time so my OH just put down all income. Anyway we received a letter in October asking us to clarify all my husbands figures from the compliance unit.

He rang them straight away and went through the figures with the officer. They said that they needed all income from previous employment but not the amount from income based JSA he received after being made redundant. He asked about his pay for redundancy (not much just over £1000 and the company didnt even have to give him it as he hadnt been there 2 years) and they said they had to include that.

I have now been told by my friend who was made redundant that what he was told was incorrect and that redundancy pay is not taken as income for tax credit purposes. I have rang tax credits to query this and they say it makes no difference as we were sent a final decision notice after the phone call in October and the law doesnt allow them to change it.

I know £1000 wont make a huge difference to our claim but it is more the fact that they told us something that was incorrect and can just basically say hard luck, its too late.

Is there anything I can do? I also dont want anyone else being told this and losing out because the officers are giving out incorrect information.

Any advice would be a real help.
Thanx

Comments

  • Redundancy pay is non taxable, can be paid outside the payroll and does not show on your P60...so I would say it's not included. What you can do to reverse the decision??? Appeal in writing for a start explaining what you did and the incorrect advice you were given
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