Tax paid on redundancy

philandsj

Please help!
I’ve recently been made redundant but my redundancy pay was taxed and I paid NI contributions. I’ve spoken to HMRC who can’t do anything as it was put through as wages so they can’t amend it. They’ve advised me to ask for a reworked payslip but that isn’t an option as I’m disputing my redundacy and unfair dismissal so they’re not minded to help me or even communicate with me in any way. Can anyone give me any guidance as to how I sort this?
many thanks

MattMattMattUK

philandsj said:

Please help!
I’ve recently been made redundant but my redundancy pay was taxed and I paid NI contributions. I’ve spoken to HMRC who can’t do anything as it was put through as wages so they can’t amend it. They’ve advised me to ask for a reworked payslip but that isn’t an option as I’m disputing my redundacy and unfair dismissal so they’re not minded to help me or even communicate with me in any way. Can anyone give me any guidance as to how I sort this?
many thanks

As per HMRC's response, the payment must be re-processed as a redundancy payment not normal wages or income tax and NI apply. If it was a redundancy payment then you former employer has a legal obligation to correct the incorrect submission to HMRC.

TheSpectator

Point out it's to their benefit to correct it as they will have paid Employers NIC on the incorrect 'wages'

saajan_12

philandsj said:

I’m disputing my redundacy and unfair dismissal so they’re not minded to help me or even communicate with me in any way. 

Re 'help me' - I'd say its not really a favour, but rather what they have to do, ie if they make you redundant, they have to pay you redundancy and put it through as such.

Re 'communicate' - If communication has broken down, then ultimately it might need to wait until the whole thing comes to a head and its all agreed together, presumably with their legal rather than just payroll. . 

penners324

The ex gratia element is tax free upto £30k.

Sounds like a payroll error. You need to contact the payroll manager and advise them of this error