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Redundancy and Unfair dismissal claim will I be Taxed???
c-a-t-h
Posts: 3 Newbie
Can anyone help or advise who has maybe been in a similar position???
I was made redundant last May and received a redundancy payment of £25K... However, I felt this was unfair and through the Union solicitors I have just been offered £25k out of court settlement for unfair dismissal..
My solicitor says I will have £30K as the tax free figure then anything above £20K will be subject to tax at the marginal rate for me... However, I have rung and spoken to the tax office who say they would not be interested in the compensation for tax purposes and it would be tax free??
Who do I believe??
Who informs the tax man when the people concerned pay me the compensation how does that work??
Any help or advice would be much appreciated!!!
I was made redundant last May and received a redundancy payment of £25K... However, I felt this was unfair and through the Union solicitors I have just been offered £25k out of court settlement for unfair dismissal..
My solicitor says I will have £30K as the tax free figure then anything above £20K will be subject to tax at the marginal rate for me... However, I have rung and spoken to the tax office who say they would not be interested in the compensation for tax purposes and it would be tax free??
Who do I believe??
Who informs the tax man when the people concerned pay me the compensation how does that work??
Any help or advice would be much appreciated!!!
0
Comments
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Neither of them - they are both wrong. HMRC certainly are interested in compensation; but the settlement and the redundancy pay are not linked, so you have not exceeded the £30k theshold.0
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Thankyou!! Thats what I thought but the solicitor said that tax would link the two £25k together!!
Its a minefield and hopefully I will be keeping the full compensation awarded!0 -
They have never done so in my experience - although HMRC do have a tendency to be a law unto themselves!0
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