Can HMRC ask for anything they like?

mildred1978

Hi there -

I took voluntary redundancy from work a few months ago. I was overtaxed on my redundancy payment to the tune of £10k which I was prepared for.

I won't be claiming benefits or earning in the rest of the financial year, so I filled out a P50, enclosed my P45 and statement outlining my redundancy settlement. I checked my calculations with an advisor on the phone and was told it would take 4 weeks for a refund to come through.

Waited 4 weeks only to get a letter requesting my original employment contract (signed 12 years ago!) my last payslip and detailed calculation of amount paid and my signed settlement agreement.

I can see absolutely no reason why they need these documents. What I've been paid in salary and SMP was covered by my P45 and my redundancy payment by the statement provided. What possible reason could they have for wanting these other documents?

Have been on hold to them for 25 minutes so far and I'm starting to smoke from the ears.

My employer let over 1000 staff leave and apparently nobody else has been asked for this info.

:mad:

dori2o

mildred1978 wrote: »

Hi there -

I took voluntary redundancy from work a few months ago. I was overtaxed on my redundancy payment to the tune of £10k which I was prepared for.

I won't be claiming benefits or earning in the rest of the financial year, so I filled out a P50, enclosed my P45 and statement outlining my redundancy settlement. I checked my calculations with an advisor on the phone and was told it would take 4 weeks for a refund to come through.

Waited 4 weeks only to get a letter requesting my original employment contract (signed 12 years ago!) my last payslip and detailed calculation of amount paid and my signed settlement agreement.

I can see absolutely no reason why they need these documents. What I've been paid in salary and SMP was covered by my P45 and my redundancy payment by the statement provided. What possible reason could they have for wanting these other documents?

Have been on hold to them for 25 minutes so far and I'm starting to smoke from the ears.

My employer let over 1000 staff leave and apparently nobody else has been asked for this info.

:mad:

Does the payslip with the redundancy payment on it included any other monies, i.e. PILON or holiday pay.

If so HMRC will need to know the breakdown of the whole payment to calculate the non taxable redundancy element.

I would assume they want the employment contract to confirm how to treat any PILON. I may be wrong but it should be detailed in the notes on the record as to why it is required.

End of the day if you don't submit the information they won't issue the refund.

mildred1978

dori2o wrote: »

Does the payslip with the redundancy payment on it included any other monies, i.e. PILON or holiday pay.

If so HMRC will need to know the breakdown of the whole payment to calculate the non taxable redundancy element.

I would assume they want the employment contract to confirm how to treat any PILON. I may be wrong but it should be detailed in the notes on the record as to why it is required.

End of the day if you don't submit the information they won't issue the refund.

No PILON or holiday pay. It's as simple as it gets.

Contract doesn't mention redundancy (was a civil servant).

McKneff

Only my slant on things but I cant see the HNRC refunding you until after the start of the tax year, my reasoning being
that although you say you wont be claiming benefits, the point is you are probably entitled to some benefits ie JSA or something and you could well change your mind and start claiming them. The HMRC wont just take your word for it.

I'm in the same sort of position, although I will recieve my state pension and a private pension up to the end of the tax year I could tell them exactly how much I will receive up to then and I will have earned under the 7475 allowance but they wont entertain my claim until then, I'll be quite happy to be corrected though

mildred1978

McKneff wrote: »

Only my slant on things but I cant see the HNRC refunding you until after the start of the tax year, my reasoning being
that although you say you wont be claiming benefits, the point is you are probably entitled to some benefits ie JSA or something and you could well change your mind and start claiming them. The HMRC wont just take your word for it.

I'm in the same sort of position, although I will recieve my state pension and a private pension up to the end of the tax year I could tell them exactly how much I will receive up to then and I will have earned under the 7475 allowance but they wont entertain my claim until then, I'll be quite happy to be corrected though

That's the whole purpose of the P50 form. It's an in year refund.

I won't be looking for a job (redundancy payment will pay me for at least 4 years) so I won't be claiming JSA.

McKneff

Well good luck then and enjoy your time off.

But do check you will have enough NI contributions for the future, State pension etc. (you need at least 30 years contriutions to get a full pension) Sorry, if that sounds patronising, it isnt meant to be, it amazes me how many people dont know about it, and that it can affect other benefit claims, Jsa, Esa Etc. It also amazes me how many people have not the slightest grasp on the basic tax system
(present company excepted of course.:D)

Good luck
Annie

mildred1978

McKneff wrote: »

Well good luck then and enjoy your time off.

But do check you will have enough NI contributions for the future, State pension etc. (you need at least 30 years contriutions to get a full pension) Sorry, if that sounds patronising, it isnt meant to be, it amazes me how many people dont know about it, and that it can affect other benefit claims, Jsa, Esa Etc. It also amazes me how many people have not the slightest grasp on the basic tax system
(present company excepted of course.:D)

Good luck
Annie

Thank you. I claim child benefit for my son and get my NI stamp through that.

chrismac1

I have 2 clients in the same position who've both basically been told in polite language to get lost until April. Even if you deliver the goods on this "producer" there will probably be another, which takes us to November or even December at which point your earliest refund date is January....

Good luck anyway. If they play the long game on this one then you'll be no better off than if you just wait until April 6 and submit a return for the refund.

mildred1978

chrismac1 wrote: »

I have 2 clients in the same position who've both basically been told in polite language to get lost until April. Even if you deliver the goods on this "producer" there will probably be another, which takes us to November or even December at which point your earliest refund date is January....

Good luck anyway. If they play the long game on this one then you'll be no better off than if you just wait until April 6 and submit a return for the refund.

Having been given advice to get the form in 4 weeks after payment was made, and being told explicitly that payment would be 4 weeks after that, I'll kick up a huge stink if that money isn't back in my account before November. I've done financial planning on the basis of the advice given, and that money should be earning me 3+% already. If HMRC think they can sit on their hands and then give 0.5% interest as a sweetener they have another think coming. I have friends in very high places

AirlieBird

My understanding is that following the changes in tax treatment of compensation payments this year HMRC have put in place processes to refund overpaid tax that has not been included on a P45 in year. The advice given by my union is "Where members believe that they may have overpaid tax on a compensation payment, they should contact HMRC immediately to claim a refund. "

mildred1978

Update: letter received today with tax refund calculation and confirmation that my refund will be paid into my bank account "shortly" :T