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Tax on Redundancy
jim8888
Posts: 429 Forumite
in Cutting tax
I was made redundant this year in March and offered an enhanced settlement, which I took. My 3 month contract was paid out (PILON) in April in the new tax year, approx £15k in total (in addition to the actual redundancy payment which was tax free). As I don't intend to work again this year I claimed the tax back on the £15k via a P50. I've just received notice from HMRC that they owe me back tax (and they were very quick on this!), but I see they've included Health Insurance, which I received as a work benefit, at the full amount for a year which is £1,919. Given that I have had one pay cheque from my employer in this tax year, is it correct that the full Health Insurance benefit in kind is used to calculate my taxable income for this year?
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Comments
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It depends on whether you received the whole benefit for the year - it could be that your former employer paid a year’s premium last April for example. More definitive will be what’s declared on the P11D for 2020/21. Perhaps you could find this out?1
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