payment for ending employment contract where the staff hasn’t started working, taxable or gift?

Hi everyone, if taxpayer recently received a £100,000 payment from a company after they ended her contract unexpectedly. She had just signed the contract, but before she could start, the company informed her that the position was no longer available. As a result, they paid her £100,000 without withholding any tax, as they didn’t classify it as post-employment income, a benefit, or redundancy (since she hadn’t actually started working). Does anyone know if this payment might be considered a tax-free gift for leaving the firm, or if it’s taxable? Also, if it is taxable, are there any tax-free allowances that might apply (similar to the £30,000 tax-free allowance on redundancy payments), even though it’s not technically redundancy? Thanks for any insights!

Hi,
As you have stated, the individual had signed a contract, therefore, they are an employed earner.  
Any monies derived from an employed earners employment must consequently be subject to PAYE tax and National Insurance contributions.
This cannot be treated as a tax free gift, redundancy and so on.  
You would add the employee to the payroll in the normal way, using the starter checklist to arrive at the correct tax code.  
Thank you.