Tax rebate for redundancy
Options
Lizmorton90
Posts: 33 Forumite
Hi,
My boyfriend was made redundant in Dec 2017 and he received his salary that he was owed (months worth), his accrued holiday and his 1 week loss of notice, all paid for by the redundancy office.
These payments were all subject to tax and NI as per the statement the office provided.
Since then the redundancy office have reported to HMRC his net earnings for his salary and his holiday with £0 tax and £0 NI and tax.
I challenged this and the redundancy office claim they can’t resend data to HMRC as their system is not working. So I contacted HMRC on his behalf numerous times by letter and online chat to ask them to review the statement and add the earnings correctly as I believe he is due a tax refund. They keep sending the same thing. They say because it’s redundancy that the tax cannot be taken into account when working out whether he has paid too much tax. I queried this and they just repeat it back referencing the loss of notice.
I understand that the loss of notice payment and the tax deducted from that cannot be taking into account when calculating his tax for the year. However after me repeating twice to HMRC surely tax paid on his salary and his holiday should be included in any tax calculator, they said no.
How can this be right? If he worked at any other job that tax paid would be recorded and accounted for in any tax calculation HMRC see. Are there different rules when being paid by the redundancy office and not your employer?
It just feels like he’s being penalised for losing his job - btw his gross earnings if you take into account his holiday and salary he received off the redundancy office means he has paid way too much tax but HMRC won’t have any of it.
I just wanted to see if anybody has had issues like this and how did they get resolved? My next step is to write two letters for him one to HMRC to challenge them and two to the redundancy office to complain as they messed up at the start (it took them 8 months to report anything and even then they reported net with £0 contributions not gross with x £ paid for tax and NI).
Thanks in advance.
My boyfriend was made redundant in Dec 2017 and he received his salary that he was owed (months worth), his accrued holiday and his 1 week loss of notice, all paid for by the redundancy office.
These payments were all subject to tax and NI as per the statement the office provided.
Since then the redundancy office have reported to HMRC his net earnings for his salary and his holiday with £0 tax and £0 NI and tax.
I challenged this and the redundancy office claim they can’t resend data to HMRC as their system is not working. So I contacted HMRC on his behalf numerous times by letter and online chat to ask them to review the statement and add the earnings correctly as I believe he is due a tax refund. They keep sending the same thing. They say because it’s redundancy that the tax cannot be taken into account when working out whether he has paid too much tax. I queried this and they just repeat it back referencing the loss of notice.
I understand that the loss of notice payment and the tax deducted from that cannot be taking into account when calculating his tax for the year. However after me repeating twice to HMRC surely tax paid on his salary and his holiday should be included in any tax calculator, they said no.
How can this be right? If he worked at any other job that tax paid would be recorded and accounted for in any tax calculation HMRC see. Are there different rules when being paid by the redundancy office and not your employer?
It just feels like he’s being penalised for losing his job - btw his gross earnings if you take into account his holiday and salary he received off the redundancy office means he has paid way too much tax but HMRC won’t have any of it.
I just wanted to see if anybody has had issues like this and how did they get resolved? My next step is to write two letters for him one to HMRC to challenge them and two to the redundancy office to complain as they messed up at the start (it took them 8 months to report anything and even then they reported net with £0 contributions not gross with x £ paid for tax and NI).
Thanks in advance.
0
Comments
-
I think this is the real issue.These payments were all subject to tax and NI as per the statement the office provided.
Since then the redundancy office have reported to HMRC his net earnings for his salary and his holiday with £0 tax and £0 NI and tax.
I challenged this and the redundancy office claim they can’t resend data to HMRC as their system is not working
Until the redundancy office are willing to correct the data they sent to HMRC nothing is going to change.
Have you looked at his taxable income for the year ignoring the redundancy office element - is there a refund due if you do that? And if so has that been refunded by HMRC? He would have received a P800 calculation from HMRC.
NB. I'm assuming he didn't file a Self Assessment return for 2017:18 tax year.0 -
Thank-you.
Yes, he was due a refund without even considering his money from the redundancy and the tax office have refunded that already, my real annoyance with the redundancy office is when they said they can’t resend, they kept quoting a reference that apparently HMRC knows about, but HMRC have no idea what it is.
I am going to make a formal complaint to the redundancy office and say that’s caused undue stress, they have an option to compensate but it’s discretionary (worth a try).
So when i contacted HMRC explaining numerous times that the redundancy office keep fobbing him off with a reference to explain their system is not working, they said they would review the statements to see if they can correct the information but HMRC (3 times now) only ever seem to talk about is the loss of notice and not the salary / holiday amounts.
Its so frustrating.0 -
I really do think you are wasting your time with HMRC.
They will only act on what the redundancy office have told them. If it is wrong the redundancy office have to correct it.These payments were all subject to tax and NI as per the statement the office provided.
Can you say what the taxable income and tax deducted was on that statement?
And what did the P800 show his total income to be for 2017:18?
NB. Ball park figure is ok, not to the penny!0 -
Thank-you.
Yes I have the statement which lists line by line gross, tax paid and NI paid for each part ie salary and holiday, this is what I have sent to HMRC three times after they requested it.
The p800 included only the net earnings for his salary and holiday not his gross so it’s always going to be wrong.
I’ll take it up with the redundancy office, I did say last time to the redundancy office after they fobbed him off if HMRC won’t accept this time I’m complaining to them.
Thanks for your help.0
This discussion has been closed.
Categories
- All Categories
- 343.3K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 248K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards