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Answered in 19 minutes by:
3/5/2012
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 16,712
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
VerifiedHi.
If the redundancy payment was made to you after you had left your job, that is the reason that tax was deducted at 20%. By law, your former employer could not put the payment through the payroll and was limited to deducting tax at 20%. This has changed from 6 April 2011 since so many people who had been made redundant had tax deducted at 20%, spent the money and two years later found out they had more tax to pay. Your employer should have warned you that there may be more tax to pay and I'm afraid you will have to pay any additional tax due.
Let me know if you have any further queries.
If the redundancy payment was made to you after you had left your job, that is the reason that tax was deducted at 20%. By law, your former employer could not put the payment through the payroll and was limited to deducting tax at 20%. This has changed from 6 April 2011 since so many people who had been made redundant had tax deducted at 20%, spent the money and two years later found out they had more tax to pay. Your employer should have warned you that there may be more tax to pay and I'm afraid you will have to pay any additional tax due.
Let me know if you have any further queries.
You are too late to do anything for 2010/11 I'm afraid.
Once the liability is quantified, you should call the Business Payment Support Service and negotiate a payment plan. This is available to all taxpayers.
Once the liability is quantified, you should call the Business Payment Support Service and negotiate a payment plan. This is available to all taxpayers.
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 16,712
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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