Redundancy pay taxed by employer

Hello, Made redundant in July this year. As par redundancy discussion I was suppose to get £23000 tax free with my last payroll. However it was taxed in payslip and marked as normal payment. On complain to HR/Finance dept of ex. employer, taxed amount was returned (£10k). Furthermore, the PAYE information listed on HMRC still shows my taxable income in tune of £50k whereas it should have been £23k less. Now my Previous employer is refusing to provide any P45 and nor amending the data with HMRC even though I have complained almost every week. Question is - How can this be corrected at HMRC paye information so that next employment or dividend payout doesn't incur higher tax. How can I file tax return next year based on my own calculations when I do not have corrected payslip or tax paid information at hand. Will HMRC accept my own numbers (£27k instead of £50k) ? What could be done to force employer quick action to sort the mess they created in July 2023? Regards, Raj

Hi,

Your employer would need to send an amendment through to HMRC to correct this, however, if this is from the point of view of yourself as an employee you will need to contact our Income Tax team to discuss this.

Income Tax: general enquiries

Your employer can make the amendment and give you a letter with the corrected pay, tax because they cannot reissue a P45.

Thank you.

Thanks, employer hasn't given me last month's payslip nor P45. This happened in July 2023 and they are still struggling with third party 'ADP' to make correction. What are my options if these doesn't gets corrected and Apr'24 arrives? I will be liable to pay higher taxes for 23-24..?

Hi rajesh purohit

If not corrected by the end of the tax year, you can provide evidence of the redundancy payment for your taxes to be reassessed.

Thank you

Hi, I have a related question - I was supposed to have been paid the tax free amount upon redundancy but have not. This was back in July 2020. Am I able to retrospectively claim the tax that I should not have paid? Could you outline the procedure and what documentation I would need to provide?

Hi

Please have a look at EIM13874, as some termination payments do not benefit from the £30000.00 threshold  (EIM13874 - Relevant termination awards received on or after 6 April 2018.  
If your termination payment does qualify for the tax free threshold, then you will need contact HMRC in writing to
H.M. Revenue and Customs
Pay As You Earn
BX9 1AS
or by telephone to the contact centre for tax enquiries, for advice on the action required.  
The tax enquiries helpline numbers are: Number: 0300 200 3300, Text Relay: 18001 0300 200 3300, Overseas: +44 1355359022 (Open Monday to Friday 8am to 6pm.  Closed on weekends and bank holidays).

Thank you