Compromise Agreement + Tax Credits

danifox6

Please could someone assist me and tell me whether I have to declare my "tax free" pay off from my compromise agreement in May of 2013 ??

Thank you

Poppie68

Was your final pay as per compromise agreement under your tax allowance? If it was your employer decided to not deduct the tax and have you claim it back. Some CA are less tax and the employee has to do a reclaim .

danifox6

Poppie68 wrote: »

Was your final pay as per compromise agreement under your tax allowance? If it was your employer decided to not deduct the tax and have you claim it back. Some CA are less tax and the employee has to do a reclaim .

My final pay had an extra £30k to reach the max allowed non taxable. No tax was taken from the CA..I don't know if that means I have to "declare" it to tax credits, I have to do my form as they used my previous years salary which was obvs not the right figure for this year as I stopped working in May 2013.....

Thank you

danifox6

blondebubbles wrote: »

There is info here on redundancy - http://www.hmrc.gov.uk/manuals/tctmanual/TCTM04111.htm

ALthough I wasn't made redundant I think on that link the phrase i see "The amount to include as income is the amount in excess of £30,000" means that I don't have to declare the 30k tax free, just my final pay packet, minus that.

Thank you