VeroT

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!